Brazil exploration update
Panoro Energy ASA ("PEN", OSE ticker code), the independent oil and gas company with assets in West Africa and Brazil provides an update for its blocks BM-S-63 (formerly SM-1036), BM-S-71 (formerly SM-1035) and BM-S-72 (formerly SM-1100).
On behalf of the partnership, Panoro Energy has signed a letter of intent (“LOI”) with Transocean for the GSF Arctic I semi-submersible drilling rig to drill three wells. The completion of a rig contract is subject to final negotiations, which are expected to be completed by the end of July 2011. The GSF Arctic I semi-submersible rig is currently operating in Brazil and is expected to be available to commence drilling in Q1-2012.
As part of the preparations for drilling three exploration wells on blocks BM-S-63, BM-S-71 and BM-S-72 in the Santos Basin offshore Brazil, Panoro Energy has recently completed a site survey covering the drilling locations for the Sabia, Canario and Jandaia prospects. The site survey included mapping the seafloor for optimizing drilling rig placement, surveying the shallow subsurface and collecting samples from the water column and seafloor for environmental permit requirements. On behalf of the partnership, Panoro Energy has now submitted the application for drilling to the environmental agency, IBAMA. Drilling start-up is contingent upon approval from IBAMA.
In January 2011, Panoro Energy announced an agreement to farm out 35% of Panoro’s 50% working interest in blocks BM-S-63, BM-S-71 and BM-S-72 in the Santos Basin offshore Brazil to Vanco Brasil Exploração e Produção de Petróleo e Gas Natural Ltda, a wholly owned Subsidiary of Vanco Overseas Energy Ltd (“Vanco”). Vanco will assume operatorship upon approval of the transaction from the Brazilian National Petroleum Agency (“ANP”) and hold 70% working interest in the three blocks. Upon ANP approval, Panoro Energy will hold a 15% working interest in the blocks.
For further information, please contact:
Jonas Gamre, Finance & Investor Relations Manager
Tel: +47 23 01 10 02
Cell: +47 971 18 292
Email: jonas.gamre@panoroenergy.com