Kosmos Vitality Ltd signed a deal to divest its 40.375 % non-operating stake within the Ceiba area and the Okume Advanced offshore Equatorial Guinea to associate Panoro Vitality ASA for as much as $219.5 million, the businesses stated Tuesday.
The disposition represents the Dallas, Texas-based firm’s manufacturing property within the Central African nation. Kosmos retains its pursuits in offshore exploration blocks EG-01 and EG-24, which it stated “present exploration alternatives for near-field short-cycle tie-backs by way of present infrastructure with good fiscal phrases, in addition to bigger play extension exploration alternatives”.
“The transaction enhances liquidity from monetizing non-core property and accelerates debt discount”, it stated in a web-based assertion. “Proceeds shall be used to scale back borrowings excellent beneath the reserves-based lending (RBL) credit score facility”.
- Advertisement -
The RBL banks have agreed on a waiver permitting Kosmos to difficulty new secured financing, “which advantages from the subordinated ensures presently offered to the present unsecured notes, topic to remaining authorized documentation”, based on a Kosmos assertion January 5.
Below the transaction with London-based, Oslo-listed Panoro, Kosmos is promoting its subsidiary in Block G, the place Ceiba and Okume are positioned.
“The consideration consists of an upfront money cost of $180 million, topic to sure changes, plus contingent funds of $12.5 million linked to manufacturing efficiency on the Ceiba area and $9 million payable in every of 2027, 2028 and 2029, that are topic to sure oil worth and manufacturing thresholds”, Kosmos stated.
“The transaction has obtained approval from the federal government of Equatorial Guinea, and completion solely stays topic to CEMAC customary approval”, it added.
“Over the two-year interval publish completion of the transaction, Kosmos expects to understand roughly $100 million in whole financial savings throughout capital expenditures and normal and administrative bills”.
Panoro already owns 14.25 % in Block G, which is able to enhance to 54.625 % upon the completion of the transaction.
Panoro famous in a separate assertion Kosmos’ stake represented a web manufacturing of 8,271 barrels of oil per day (bopd) final yr.
Primarily based on reserve figures as of 2024, the acquisition provides web confirmed and possible reserves of 46 million barrels “with strong working margins” and contingent assets of 29 million barrels, Panoro stated.
Panoro is “on path to realize group web manufacturing of 20,000 bopd in 2027”, it stated.
A part of a lately accomplished personal issuance of 19,999,999 shares, which raised round $49 million gross, shall be used to fund the acquisition. The rest of the cost to Kosmos shall be settled by way of a $150 million faucet difficulty beneath Panoro’s present senior secured bond, in addition to accessible funds, Panoro stated in one other assertion saying the completion of the personal placement.
Panoro government chair Julien Balkany stated the acquisition “greater than doubles Panoro’s reserves base, considerably will increase manufacturing and can improve the frequency and measurement of our crude liftings, driving significant long-term money circulate growth”.
Block G is operated by Trident Vitality with a 40.375 % stake. Equatorial Guinea’s nationwide oil firm GEPetrol owns the remaining 5 %.
Panoro and Kosmos stay companions in EG-01. Panoro operates the block with a 56 % stake. Kosmos owns 24 %. GEPetrol has 20 %.
In EG-24, Kosmos is operator with an 80 % stake. GEPetrol owns 20 %.
To contact the creator, e mail jov.onsat@rigzone.com
