Independent oil and gas exploration and production company with a focus on sub-Saharan Africa, PetroNor, has released an update on its purchase of SPE Guinea Bissau AB.

The purchase was first announced on November 20^th 2020. The Company has now announced that it has received the necessary approvals in the country, which set a condition precedent to completion; now satisfied, the transaction will be completed per the terms of the Share Purchase Agreement (SPA).

PetroNor is to commence discussions with the joint venture (JV) Partners on the licences to discuss the work programme, with a view to undertaking drilling activity in 2021/22.

Commenting on the update, CEO Knut Søvold said: “We are delighted to have received the requisite approvals to complete the acquisition of these highly attractive and strategically complementary assets. The acquisition diversifies our exploration portfolio and provides us with meaningful exposure to a number of drill ready prospects, with Atum and Anchova containing a gross case recoverable prospective resource of 498 mmbbl (Svenska Petroleum Exploration estimate). The addition of high potential acreage in Guinea-Bissau delivers more high impact assets to our portfolio and enhances our ability to monetise our exploration assets in due course. These assets have the potential to be truly transformational for our business, and we know there is firm interest in the MSGBC exploration trend and our prospects are analogous to the world class Sangomar field in Senegal. Add to that the improving sentiment caused by strengthening crude prices and we have great confidence that this is a well-timed and well-executed transaction that will deliver long-term value for our shareholders.”

PetroNor will hold a 78.57% interest as Operator of the Sinapa (Block 2) and Esperanca (Blocks 4A and 5A) licences in Guinea-Bissau, which have been extended for 3 years and are valid until 2^nd October 2023, maintaining the same attractive fiscal terms.