Panoro Energy has agreed to acquire Beender Tunisia Petroleum’s 40% stake in Sfax Petroleum Corporation (SPC) in an $18.2m cash and shares deal.
Through its subsidiaries, SPC indirectly holds a 49% stake in the producing TPS Assets in northern Tunisia.
The TPS assets cover five onshore/shallow-water oil field concessions close to Sfax city, and an 87.5% stake in the Sfax offshore exploration permit (SOEP).
The five onshore/shallow-water oil field concessions include Cercina, Cercina Sud, Rhemoura, El Ain/Gremda and El Hajeb/Guebiba.
Under the deal, Panoro is to pay $4.9m in cash and issue $8.3m worth of new Panoro shares as an upfront consideration.
The transaction has a $5m deferred consideration, which is payable in cash by the end of 2023.
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Upon completion of the deal, Panoro will be the sole owner of SPC. Sfax Petroleum will then become a fully owned subsidiary of Panoro.
Panoro CEO John Hamilton said the transaction is aligned with the company’s growth strategy.
Hamilton said: “The acquisition materially increases our interest in the producing TPS assets, where we have built a deep understanding through our role as joint operator alongside Tunisian national oil company ETAP since 2018, and the prospective SOEP.
“The TPS assets are long-life, low-cost oil fields with a stable production history and significant volumes of oil yet to be recovered, while the Sfax offshore exploration permit holds three oil discoveries and numerous identified prospects and leads in the vicinity of existing infrastructure.
“Beender has been a highly valued minority partner for several years and we now welcome them as Panoro shareholders.”
The acquisition is expected to add three million barrels of oil of 2P reserves and a net daily production of 800–900 barrels per day.
Comprising the Ras El Besh concession, the SOEP lies in the Cretaceous and Eocene carbonate platforms of the Pelagian basin offshore Tunisia.