Panoro Energy, an independent oil and gas exploration and production company, has completed its $64.4 million acquisition of DNO’s wholly owned subsidiary DNO CI LLC, securing an indirect 9.09% interest in Block CI-27, a major offshore gas-producing asset in Côte d’Ivoire.

The deal marks the London-based oil and gas producer’s entry into the West African country and expands its exposure to gas, condensate and oil production.

The transaction comprises $43 million in cash and $21.4 million through the issuance of seven million new Panoro shares to DNO. Panoro had previously paid a $5 million cash deposit and is acquiring about $8 million in cash held within the acquisition structure at completion.

Panoro raises production above 21,500 barrels

The acquisition lifts Panoro’s overall group production to more than 21,500 barrels of oil equivalent per day, from more than 18,000 barrels of oil per day before completion. Strong performance at Block G in Equatorial Guinea has also contributed to the company’s existing production base.

“This landmark acquisition of high-quality production and reserves in Côte d’Ivoire” is Panoro’s second M&A transaction of the year, Executive Chairman Julien Balkany said. The company purchased an additional interest in Block G, offshore Equatorial Guinea, in February and completed that transaction in June.

Balkany said the DNO acquisition is strongly accretive across standard industry metrics and supports Panoro’s ambition of delivering long-term shareholder returns.

Block CI-27 supplies gas to Abidjan

Located about 70 kilometers southwest of Abidjan, Block CI-27 contains Côte d’Ivoire’s largest reserves of non-associated gas. Its production comes from four offshore fields: Foxtrot, Mahi, Manta and Marlin, connected to two fixed platforms.

Gas is transported by pipeline and sold for power generation in Abidjan under a long-term gas sales agreement with a take-or-pay structure and minimum fixed price. The asset produces at a low unit cost of approximately $6 per barrel of oil equivalent.

Panoro will work with field partners including operator Foxtrot International, national oil company PETROCI, SECI S.A. and Côte d’Ivoire’s Ministry of Mines, Petroleum and Energy.

DNO subsidiary expands Panoro’s African reach

Panoro Energy, incorporated in 2009, is an independent oil and gas exploration and production company focused entirely on African assets. It is headquartered in London, with corporate registration in Oslo, Norway, and is listed on the Oslo Stock Exchange.

DNO CI LLC is a wholly owned subsidiary of Norwegian oil and gas operator DNO ASA, holding interests in offshore Côte d’Ivoire. Panoro said its entry into the country could create further growth opportunities in an established and expanding hydrocarbon market.