Update on Tunisian farm-out process
Continuing delays and remaining uncertainties
In May 2013 PA Resources entered into an agreement to sell to EnQuest 70% interests in, and to transfer the operatorship of, the offshore assets in Tunisia which include the Zarat Permit and the Didon Concession. Due to the political situation in the country the transaction is still be ratified by the Tunisian authorities.
A key requirement to close the sale to EnQuest of an interest in the Zarat licence is Parliamentary approval of Avenant 5, extending the Zarat licence. Despite previous assurances from the Tunisian authorities that approval of Avenant 5 is imminent it is becoming clear that a favourable decision is not certain in the short term.
It is the firm belief of PA Resources that an early approval of Avenant 5 is in the best interest of Tunisia, especially as the company are working very closely with ETAP as PA’s Zarat partner to deliver a Plan of Development for the Zarat Field that will satisfy the needs of the Tunisian economy.PA Resources is working hard together with the relevant authorities to expedite the approval process and will continue to explore all avenues to ensure the completion of the transaction and to realise the returns from the significant investments PA has made in these licences over many years.
Stockholm, 7 April, 2014
PA Resources AB (publ)
For additional information, please contact:
Head of Corporate Communications & IR
PA Resources AB
Tel: +46 72 181 08 67
PA Resources AB (publ) is an international oil and gas group which conducts exploration, development and production of oil and gas assets. The Group operates in Tunisia, Republic of Congo (Brazzaville), Equatorial Guinea, United Kingdom, Denmark, Netherlands and Germany. PA Resources is producing oil in West Africa and North Africa. The parent company is located in Stockholm, Sweden. PA Resources’ net sales amounted to SEK 1,312 million in 2013. The share is listed on the NASDAQ OMX in Stockholm, Sweden. For additional information, please visit www.paresources.se.
The above information has been made public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published at 08:00 a.m. CET on 7 April 2014.