Noreco’s subsidiary, Noreco Norway, has entered into a sale and purchase agreement with Det norske oljeselskap for the sale of its remaining exploration licences, employees and a cash balance of ca. NOK 45 million, to be adjusted for working capital.
The effective date of the transaction is January 1, 2016.
According to Det norske, the license portfolio consists of seven licenses on the Norwegian Continental Shelf, including a 20 percent interest in the Gohta discovery (PL492) in the Barents Sea. Noreco’s 4.36 percent interest in the Enoch field is not included in the transaction.
“Following the recent acquisition of both Svenska Petroleum Norway and Premier Oil’s Norwegian subsidiary, this take-over of Noreco Norway underlines Det norske’s belief in, and commitment to the Norwegian Continental Shelf,” says Karl Johnny Hersvik , CEO of Det norske.
According to Noreco, subject to completion, the proposed transaction, together with the previously announced Enoch transaction, will constitute a ceasing of all of Noreco Norway’s petroleum activities. To remind, Noreco in December entered into a sale and purchase agreement to transfer its 4.36% participating interest in the Enoch licence , offshore Norway, to CapeOmega.
Added to the proceeds from the Oselvar sale this is expected to result in an estimated recovery of approximately 94.7% of the initial principal amount under the NOR06 bond issue.
The transaction entered into with Det norske is conditional on approval from NOR06 bondholders, Noreco noted.
Pertaining to this, Noreco has received pre-acceptance and voting commitments for the transaction from major bondholders holding a majority of the outstanding bonds.
Additionally, Noreco added, the proposed transaction is conditional upon approvals by the Ministry of Petroleum and Energy and the Ministry of Finance.