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FINWIRES

Norwegian Oil Producer DNO to Sell Ivory Coast Asset to Panoro for Over $86 Million

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Norwegian oil and gas producer DNO will sell its stake in Ivory Coast-based assets, held by its subsidiary DNO CI, to London-headquartered Panoro Energy for $86.5 million, it said in a statement on Aug. 19.

Payment will be $65.1 million in cash with the remainder settled with 7 million Panoro shares, DNO said, with the transaction to close within one month.

DNO said it bought the Cote d'Ivoire business from Rak Petroleum in 2022 in conjunction with Rak's distribution of its shareholding in DNO to its shareholders.

DNO said that as it expands in the North Sea and increases oil and gas output to nearly 150,000 barrels of oil equivalent per day, the West African business is no longer central to its strategy.

It said that it achieved an annualized return of about 24% since acquiring the business in Oct. 2022, with its output averaging about 3,300 boepd net to DNO.

Net 2P reserves in the asset are about 9.4 million barrels of oil equivalent and net 2C resources are 5.0 million barrels of oil equivalent, DNO said.

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