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Energy: Completion of farm-out agreement of blocks BM-S-63, BM-S-71
and BM-S-72 in the Santos Basin, offshore Brazil
26th December 2011
Panoro Energy ASA (PEN, OSE ticker code), the independent oil and gas company with assets in West Africa and Brazil is pleased to announce the completion of the farm-out of 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).
In January 2011, Panoro Energy announced that the Company had reached agreement to farm out 35% of Panoro's 50% interest in its three shallow water exploration licenses BM-S-63 and BM-S-71 and BM-S-72.
With the completion of the transaction, Panoro Energy has now received USD 14.5 million for historical costs on the blocks. Furthermore, Vanco will finance Panoro's remaining 15% share of drilling costs for three exploration wells, one on each license.
drilling campaign on these licenses is expected to start during H1-2012
comprising the drilling of the Sabiá, Canario and Jandaia prospects.
Brasoil also farmed-out its interests in BM-S-63, BM-S-71 and BM-S-72.
Stellar was the sole advisor to Panoro and Brasoil for this transaction.