Pandion Energy AS (Pandion Energy) has entered into an agreement with Equinor Energy AS (Equinor) to acquire a 20 percent interest in licenses PL 263 D and PL 263 E, containing the Appolonia prospect. The licenses are located in the prolific Haltenbanken area of the Norwegian Sea in blocks 6407/1 and 6507/10, respectively. The operator is currently maturing the Appolonia prospect, which in case of a positive drill decision by the partnership may be added to the operator’s exploration drilling program for 2020.
CEO of Pandion Energy, Jan Christian Ellefsen, commented:
“Pandion is very pleased with this acquisition which represents our third exploration farm-in and the second in the Norwegian Sea. The Appolonia prospect is located in a very prolific area and makes up a valuable contribution to our growing portfolio of high quality exploration assets.”
PL 263 D was awarded in the 2017 APA round. PL 263 E is a new license to be carved out from PL 263, which was awarded in the 16th licensing round in the year 2000. Both licenses are operated by Equinor (70% before farm-down) with Spirit Energy Norway AS (30%) as a partner.
The transaction is contingent on completion of the carve-out of PL 263 E from PL 263 and is subject to customary conditions for completion, including approval by the Norwegian Ministry of Petroleum and Energy.
The Board of Directors of Pandion Energy has approved the Company’s annual report for 2018, including the audited financial statements for 2018.
“After a flying start in 2017, outperforming our own objectives, 2018 was the year we really established Pandion Energy as a full-cycle oil and gas company. During the year, we expanded our portfolio across all phases from exploration through to production on the Norwegian Continental Shelf and significantly strengthened our team. Besides, we completed our first round of debt financing, establishing a solid financial platform for future growth”, says Jan Christian Ellefsen, CEO of Pandion Energy.
In 2018, which was Pandion Energy’s first year with operating income, the Company recorded revenues of USD 101 million. The revenues relate to the Company’s 10 per cent interest in the Valhall & Hod fields, acquired from Aker BP in December 2017.
The Board considers Pandion Energy to be well positioned for further growth. The Company will continue its path to identify and invest in high quality assets in all phases.
The Board considers Pandion Energy to be well positioned for further growth. The Company will continue its path to identify and invest in high quality assets in all phases. By being an active license partner, Pandion will benefit from partnering with strong operators and contribute to maximising the value of the Company’s resource base.
The Company’s development projects are progressing according to plan. Valhall Flank West project (10 per cent) is expected to commence production in the fourth quarter of 2019, while the Duva development project (20 per cent), is currently expected to commence production in late 2020/early 2021.