Author: Oksana Hillervik

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.

Download/Link

• Pandion Energy 2018 Annual Report

The PL 636 license partners have earlier today submitted the development plan for the Duva project (formerly known as Cara discovery) in the Norwegian sector of the North Sea to the Ministry of Petroleum and Energy. Pandion holds a 20% interest in the Duva project.

The Duva field will be developed as subsea tie-back connecting to the nearby Gjøa platform. Duva’s recoverable reserves are estimated at 88 million barrels of oil equivalents and is expected to yield around 30 thousand barrels of oil equivalent per day at maximum production. First production from the project is expected in late 2020/early 2021.

Jan Christian Ellefsen, CEO of Pandion Energy, commented:

“The submission of the Duva PDO represents a significant milestone for Pandion Energy, as this was the first discovery in our portfolio following the prequalification of Pandion Energy as a licensee on the Norwegian continental shelf around two years ago. There has been material reserves uplift since Pandion acquired its 20% share in the project in 2017 with an increase in recoverable resources by more than 50%. The development of Duva field will significantly contribute to the production ramp-up for Pandion Energy in the coming years.”

The submission of the Duva PDO represents a significant milestone for Pandion Energy, as this was the first discovery in our portfolio following the prequalification of Pandion Energy as a licensee on the Norwegian continental shelf around two years ago. There has been material reserves uplift since Pandion acquired its 20% share in the project in 2017 with an increase in recoverable resources by more than 50%.

Developed with a four-slot subsea template, the Duva field will be tied back to the Gjøa platform for processing and export. The field will have three production wells, two oil producers and one gas producer, with the possibility of an additional oil producer.

The Duva field is located 6 kilometres northeast of the Gjøa field (12 kilometres from the Gjøa platform). The discovery was made in production license 636 in August 2016.

Other licensees in the Duva project include Neptune Energy Norge (30% licensee and operator of both the Duva project and the Gjoa platform), Idemitsu Petroleum Norge (30%), and Wellesley Petroleum (20%).

For more information see press release by Neptune Energy

Pandion Energy has recently embarked on the process of digitalization of its subsurface capabilities through applying new digital solutions to geological and geophysical data. The objective is to drive innovation and enhance efficiency in the exploration for oil and gas on the NCS.

This work has been motivated by Kerogen Capital, the company’s financial backer, selecting Pandion Energy as their first pilot case for developing an advanced digital subsurface platform (KAI) as part of their wider investments into energy technology under Kerogen Digital Solutions. As part of this, Pandion Energy has partnered with Computas and Google and mobilized a dedicated team comprising machine learning, datascience and geoscience experts for its digitalization effort.

“We believe these partnerships will be very beneficial for all parties, sharing innovation and agility as two important drivers for our digital venture”, says Jan Christian Ellefsen, CEO of Pandion Energy.

Being the first non-operator partnering with Google on the NCS, he further states he believes Pandion Energy is an attractive partner recognized for it’s subsurface expertise and lean decision making processes, demonstrated by the Company’s rapid growth since inception. These are characteristics that will enable swift testing and implementation of new digital solutions. Being backed by Kerogen Capital represents further opportunities with regard to cooperation and sharing across the industry.

“Pandion has always had a holistic approach to our exploration activities. Having Kerogen to select us as their first pilot case for developing an advanced digital subsurface platform, also reflects on the potential in digitalization on the NCS”, adds Ellefsen.

 

Digex 2019

Pandion Energy will be present at the Digex 2019 – The Digital Subsurface conference held at Gardermoen, Norway, Wednesday 30^th and Thursday 31^st of January.

Represented by Kine Johanne Årdal, Digitalisation Manager in Pandion Energy:
kine.ardal@pandionenergy.no
+47 91 61 54 09

Pandion Energy has been awarded two licenses under the 2018 Norwegian APA (Awards in Pre-defined Areas) License Round on the Norwegian Continental Shelf.

The APA award was announced by the Minister of Petroleum and Energy (MPE), Kjell-Børge Freiberg on Tuesday 15. January. For more information about APA 2018 see MPE’s website.

Pandion Energy has been awarded the following licenses:

• License PL 985 (blocks 25/5, 6, 8 and 9) is located in the Central North Sea, north and east of the Ringhorne and Jotun Fields, respectively. Pandion Energy considers this to be an interesting area for exploration near infrastructure and acquired last year a participating interest in PL 820 S, southeast of the awarded area, where a well is planned to be drilled during 2019. Pandion Energy has been offered a 20% participating interest in PL 985.
• License PL 636 B (blocks 36/7) is additional acreage to PL 636, where the license partners are planning to submit a Plan for Development and Operation (PDO) for the Cara discovery within a short time.  The license is located on the Måløy slope, east of Gjøa field in a strategic core area for Pandion Energy. Pandion Energy has been offered a 20% participating interest in PL 636 B.

“The APA licensing rounds are important to us, and we have as previous years applied in selective areas where we see an attractive resource potential. We are pleased to get these awards and look forward to commencing the work on our new licenses”, says Jan Christian Ellefsen, CEO of Pandion Energy.

In December 2018, Pandion Energy reached average daily production of 5,000 barrels per day. This was achieved in less than 12 months since the completion of the Valhall & Hod transaction with Aker BP, in which the Company acquired a 10 percent interest in the assets, and only 1,5 years after the Company was prequalified as a partner on the NCS.

Pandion expects to continue to increase production through bringing in new projects onstream, such as Cara and Valhall West Flank development projects.

Jan Christian Ellefsen, the CEO of Pandion Energy commented:

“I am very pleased with our team and the strong support from our financial sponsor Kerogen Capital, a powerful combination that has enabled us to grow so rapidly.  Looking back at the business plan we started out with two years ago, we have achieved most of our growth objectives in less than half the time.”

Jan Christian Ellefsen continues:

Going forward, we will maintain our full-cycle strategy across all phases from exploration through to production on the NCS, and we will continue to actively seek opportunities through licensing rounds, farm-ins as well as M&A.

The Cara license, PL 636, operated by Neptune Energy Norge AS (Neptune Energy) with Pandion Energy AS (Pandion Energy) as 20 percent partner, continues forward with a subsea development solution for the field located in the Norwegian North Sea.

The proposed concept is a subsea tieback to the Neptune Energy operated Gjøa platform. Neptune Energy (operator) has on behalf of the Cara license submitted the “Decision to Continue” (BOV) report to the Ministry of Petroleum and Energy. The license partnership now enters the define phase of the project, refining the technical and economic plan before committing to a final investment decision.

The Cara field is located six kilometers northeast of the Gjøa field and about 60 kilometers of mainland Florø. Cara is expected to yield between 56-94 million barrels of oil equivalents, which corresponds to be in range of 9-15 million standard cubic meter (MSm3).  Idemitsu Petroleum Norge AS and Wellesley Petroleum AS are also license partners in the field.

For more information on the Cara development, please see Neptune Energy’s press release.

Pandion Energy is pleased to announce that the Company’s NOK 400 million senior unsecured bond “Pandion Energy AS Senior Unsecured Callable Bond Issue 2018/2023” with ISIN NO 0010820103 has been listed on the Nordic ABM.

DNB Markets and Pareto Securities acted as Joint Lead Managers for the bond issue.

Pandion Energy has had a flying start since inception in November 2016, outperforming the main objectives set out for the first year as a new company. 

“We were all excited and eager to get going after securing financial support from Kerogen Capital to execute the management buy-out of Tullow Oil’s Norwegian operations at the end of 2016. Our initial target was to develop a portfolio of 100 mmboe of reserves and contingent resources. With the acquisition of a 10 percent interest in the Valhall & Hod producing fields from Aker BP ASA (“Aker BP”), Pandion Energy has transformed into a full-cycle oil and gas company, and came close to achieving our target within our first year of existence” says CEO of Pandion Energy, Jan Christian Ellefsen.

With the acquisition of a 10 percent interest in the Valhall & Hod producing fields from Aker BP, Pandion Energy has transformed into a full-cycle oil and gas company, and came close to achieving our target within our first year of existence.

In December 2017, the combination of a great team effort and strong investor support enabled Pandion Energy to acquire a 10% share of the Valhall & Hod fields from Aker BP.  The company was able to evaluate the assets, and negotiate and complete the transaction within only four weeks. The speed of the transaction truly demonstrated Pandion’s ability to move swiftly when attractive opportunities arise.

“The transaction also reflected our team’s technical, commercial and financial capability on the NCS, having worked together for almost ten years. It also showed that matching our competence with that of our majority investor, Kerogen Capital, increases both our confidence and level of precision when considering quality assets such as the Valhall & Hod fields. I was personally pleased to see that we, as a young organisation, truly lived up to our core values; professional, agile, commercial and team player”, tells Jan Christian Ellefsen.

During 2017, Pandion also continued high-grading the existing portfolio with the relinquishment of certain sub-commercial exploration licenses that came with the management buy-out in 2016. The key asset from this transaction, the Cara discovery operated by Neptune Energy, had a material upgrade in resource estimates. The company was also awarded two promising licenses in the 2017 Awards in Predefined Areas (“APA”) licensing round.

An active partner

“In the daily work, Pandion Energy strives to be a active partner in all their licenses by ensuring that operators continue this improvement trend and deliver projects on time and budget. The company works proactively with operators to target upsides in and around proven assets, and continue to seek other attractive growth opportunities through M&A, farm-ins and participation in licensing rounds.

Our ability to create long-term, lasting value rests on maintaining high standards of governance, sustainable business practice and operations.

“Our ability to create long-term, lasting value rests on maintaining high standards of governance, sustainable business practice and operations. Sound business decisions are a product of a strong team, an active board of directors and a competent owner, and 2017 was a year where this symbiosis worked seamlessly. We are very pleased that we now in June also got our efforts confirmed with a clean audit report from the Petroleum Safety Authority of Pandion Energy as a licensee on the NCS”, tells Ellefesen, and continues:

“We are very pleased with the continued support of our financial backer, Kerogen Capital, as well as our bond investors and bank lenders as evidenced by our recent capital raise in April. Coupled with our highly competent team, I am certain that this will enable Pandion Energy to create further value both for our shareholders and the Norwegian society in the years to come.”

Downloads/Links:

• Pandion Energy 2017 Annual Report
• Petroleum Safety Authority Norway –  Audit of Pandion Energy AS