PetroNor advances its oil and gas developments in Africa.

Oil and gas company PetroNor E&P has confirmed the finalization of the farm-out transaction in Guinea-Bissau with Apus Energy DMCC for exploration licenses offshore Guinea-Bissau, and has obtained a license for PNGF Bis in Congo.

During the Christmas vacation period, Apus Energy initiated payment of $23 million for past license costs and long-term items purchased for drilling under the farm-out agreement entered into by the companies in June 2023.

The government of Guinea-Bissau has approved the transfer of the Sinapa (block 2) and Esperança (blocks 4A and 5A) permit interests to Apus in October 2023.

An exploration well to test the Atum-1 prospect is scheduled to be drilled in the second quarter of 2024.

In the event of a successful well, PetroNor should receive two conditional payments of $30 million each, subject to government approval of a field development plan and sustained production.

Congo PNGF Bis moves forward

On December 27, 2023, the Council of Ministers of the Republic of Congo met and approved a number of energy projects.

This included the award of the PNGF Bis license to a group of contractors led by Perenco as operator and with PetroNor, represented through its Congolese subsidiary Hemla E&P Congo, as partner with a 22.7% net interest.

This approval will pave the way for the signing of a production sharing agreement in early 2024, according to PetroNor.

"We are delighted that the farm-out of the Guinea Bissau licenses will lead to the drilling of an important exploration well for Guinea Bissau and the region. The finalization of this transaction, coupled with the approval of the Congolese Council of Ministers on PNGF Bis, is a welcome way to round off a very successful year for PetroNor.

"The payment to Guinea-Bissau is a significant contribution to the company's year-end balance sheet, already strengthened by record oil production and sales. In addition, we look forward to advancing the development of the new license in Congo in 2024 with our partners," said Jens Pace, PetroNor's interim CEO.