Oslo, 2 December 2016: Panoro Energy ASA ("Panoro" or the "Company" with OSE
ticker "PEN") announces that it is currently in disagreement with its Joint
-Venture Partners in OML 113 in Nigeria and intends to initiate arbitration and
legal proceedings to protect its interests.
The Company, through its fully owned subsidiary, Pan Petroleum Aje Limited
("PPAL"), holds 6.502% participation interest in OML 113.
PPAL has received default notice from the Technical Advisor on behalf of the
Operator of OML 113 in relation to a disputed cash call that Panoro believes to
be invalid due to an incorrect application of Joint Operating Agreement ("JOA")
provisions.
PPAL has received legal advice that the disputed cash call is baseless, and
therefore there are no grounds to issue the default notice to PPAL purporting to
hold PPAL in breach of its obligations under the JOA.
PPAL has asked the Joint-Venture Partners to agree to rescind and cancel the
claim for the disputed cash call and the purported default notice, but such
undertakings and agreement have unfortunately not been forthcoming. Panoro is
still proactively trying to resolve the issue in order to preserve shareholder
value. At this stage, no agreement has been reached and no assurance can be
given that any agreement will be reached.
As the cash call and default notice remain in dispute, PPAL intends to commence
arbitration proceedings pursuant to the JOA. In addition, to protect its rights
prior to commencement of the arbitration proceedings, PPAL has applied to the
High Court in London, UK for interim relief in order to protect its rights under
the JOA.
Panoro will seek to recover all losses, costs, expenses, compensation and
damages in law and equity caused directly or indirectly by the Joint-Venture
Partners' breach of their contractual and equitable obligations. Panoro will
also continue to take all necessary action to retain its equity participation in
OML 113 and to preserve shareholder value.
Further updates will be provided as necessary in accordance with Panoro's
continued disclosure obligations.
Enquiries:
Panoro Energy ASA +44 203 405 1060
John Hamilton, Chief Executive Officer info@panoroenergy.com
About Panoro Energy
Panoro Energy ASA is an independent E&P company based in London and listed on
the Oslo Stock Exchange with ticker PEN. The Company holds high quality
production, exploration and development assets in West Africa, namely the
Dussafu License offshore southern Gabon and OML 113 offshore western Nigeria. In
addition to discovered hydrocarbon resources and reserves, both assets also hold
significant exploration potential. For more information, please visit the
Company's website at www.panoroenergy.com.