PA Resources has entered an agreement to farm-out a 60% working interest in the
Mer Profonde Sud permit to SOCO International plc.
The Mer Profond Sud permit comprises the exploration area of the licence but
excludes the Azurite field. In return for carrying certain of PA Resources’
costs, SOCO will assume a 60% working interest in the MPS exploration area as
operator and will drill an exploration well in the remaining licence period.
This transaction is subject to the necessary partner and regulatory approvals
including both the assignment of the interest to SOCO and renewal into the third
and final period of the licence. Following completion of the transaction, PA
Resources will retain a 25% working interest in the licence, whilst the
Congolese state oil company, SNPC, will retain its current 15% interest.
The farm-out will result in an impairment loss of USD 50 million, appr. SEK 320
million, reported in the year-end report 2013.
PA Resources’ CEO, Mark McAllister comments: “We are delighted to announce this
transaction and we look forward to working closely with our partners to secure
the necessary approvals to allow it to proceed. We believe this farm-out is in
the interest of all parties since it will continue the exploration of MPS by an
established operator in Congo. Following a recent subsurface re-evaluation, we
are optimistic about the potential of MPS to host less complex accumulations
than Azurite, in close proximity to sizeable fields in production and under
development in adjacent licences.
Stockholm, 4 November 2013
PA Resources AB (publ)
For queries, please contact:
Mark McAllister, President & CEO
+44 203 322 0182
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 2,184 million in 2012. 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 08.45 a.m. CET on 4 November 2013.
