Panoro Energy acquires offshore Equatorial Guinea block

Panoro Energy ASA will begin exploration on offshore Block EG-23, north of Bioko Island and adjacent to Alba gas and condensate field, after finalizing terms and signing a production sharing contract (PSC) with the Government of Equatorial Guinea.

Panoro and GEPetrol have been awarded the block for an initial period of 3 years during which they will conduct subsurface studies based on existing seismic data to further define and evaluate the prospectivity of the block. Following this, the partners will have the option to enter into a further 2-year period, during which they will undertake to drill an exploration well.

The block covers a surface area of about 600 sq km in 50-100 m of water. Nineteen wells have been drilled in the block to date resulting in seven hydrocarbon discoveries (four oil, two gas, and one gas-condensate), some of which have been tested.

Panoro’s technical evaluation indicates a range of plays exist on the block and has identified several prospects and leads in addition to the existing discoveries which, based on existing data, are estimated by the Ministry of Mines and Hydrocarbons to hold contingent resources of about 104 million bbl of oil and condensate and 215 bcf of gas.

Block EG-23 was previously held by Marathon. Panoro is now operator of the block (80%) with GEPetrol holding the remaining 20%.