Pandion Energy has secured Exploration Finance Facility

Pandion Energy has entered into a loan agreement with BNP Paribas and Skandinaviska Enskilda Banken AB (publ) (SEB) for the financing of its exploration and appraisal activities on the Norwegian continental shelf (NCS). The facility amount is NOK 400 million with an accordion of NOK 200 million.

Jan Christian Ellefsen, Pandion Energy’s CEO, commented:
“Investments within exploration and appraisal projects are a core part of our growth strategy and with the Exploration Finance Facility (EFF) secured, we now have all the tools in place to execute on our business plan. We are very pleased with securing our first finance facility with two highly experienced E&P banks that can support us as we develop and expand our portfolio.”

The banking facility will work in combination with previously committed equity capital from Kerogen Capital. Earlier this year Kerogen Capital announced that it may commit up to US$300 million to Pandion Energy as its portfolio develops.

Pandion Energy, founded in November 2016, is a private oil and gas company focusing on exploration, appraisal and development opportunities in all parts of the Norwegian Continental Shelf (NCS). The company was prequalified as a Licensee on the NCS in June this year. Pandion Energy has recently applied for licenses in the Awards in Predefined Areas (APA) round and is currently also assessing other investment opportunities on the NCS.

Increase in resource estimate for the Cara discovery

ENGIE E&P, the operator of the Cara-licence (PL 636) in the Norwegian sector of the North Sea has increased the resource estimate for the Cara discovery to 56 – 94 million barrels of oil equivalent. Pandion Energy has a 20% interest in the Cara licence PL636.

Cara is a gas and oil discovery in PL 636 in block 36/7, located approximately 14 kilometres from the ENGIE E&P operated Gjøa facilities. The original volumes were estimated to be between 4.5 and 12 million standard cubic metres (MSm3) of recoverable oil equivalent, which corresponds to 25 – 70 million barrels. This made Cara the second largest discovery on the Norwegian continental shelf in 2016, according to the Norwegian Petroleum Directorate.

Increase in volumes

The operator now estimates the volumes of the discovery to be in the range of 9 – 15 million standard cubic metres (MSm3) of recoverable oil equivalent. This corresponds to 56 – 94 million barrels.

Since the discovery in 2016, the expanded data acquired during drilling and testing of the well has been analysed, resulting in increased volumes, which give improved economics and a more robust field development project.

Tie-back to Gjøa

This week, the Cara-licence reached the “Concretisation Decision”*, which is the feasibility decision gate in the Norwegian petroleum system. At this stage, the licensees have identified at least one technical and economically feasible concept that provides a basis for initiating studies that should lead to concept selection by 1st November 2018.  The suggested concept involves a tie-back to the ENGIE E&P operated Gjøa-facilities.

Expected start-up of production at the Cara field is being targeted for late 2020/2021.

Strengthened foundation for further growth for Pandion Energy.

Jan Christian Ellefsen, the CEO of Pandion Energy commented:
“This is positive news and in line with our own understanding of the discovery. This represents a substantial increase in contingent resources for Pandion Energy given we only recently prequalified as a licensee on the Norwegian continental shelf. The Cara discovery is our first development and a good example of the type of investment opportunities we are targeting through exploration as well as when evaluating farm-in opportunities in development projects and producing assets. The foundation for our growth has been further strengthened.”


Licence partners in PL636: Partners in PL636 are: ENGIE E&P (30%, Operator), Idemitsu Petroleum (30%), Pandion Energy (20%) and Wellesley Petroleum (20%)

* In Norwegian terminology: BoK/Beslutning om konkretisering.