Panoro Energy has reached an agreement with the Government of Equatorial Guinea on the key terms and conditions for the award of offshore Block EG-23. 

The Heads of Terms agreement signed by Panoro, GEPetrol (the national oil company), and the Ministry of Mines and Hydrocarbons paves the way for a period of exclusive negotiations to finalise a Production Sharing Contract (“PSC”) for Block EG-23 and development of a work programme and budget.  Panoro envisages its participating interest in Block EG-23 upon award of a PSC will be up to 80 percent initially.  

Block EG-23 is located offshore Equatorial Guinea north of Bioko Island and adjacent to the producing Alba gas and condensate field. Covering a surface area of approximately 600 km² in water depths ranging from 50 metres to 100 metres, 19 wells have been drilled on Block EG-23 to date resulting in seven hydrocarbon discoveries (four oil, two gas and one gas/condensate), some of which have been tested. The block was previously held by Marathon. Panoro’s technical evaluation indicates a range of plays exist on the block and has identified a number of prospects and leads in addition to the existing discoveries. 

Panoro envisages an initial work programme will be focused on re-processing existing seismic data to mature prospects and leads to a drill-ready state with an option to then enter a second stage which would entail drilling. 

John Hamilton, CEO of Panoro, commented:
“We are grateful to the Government of Equatorial Guinea for this opportunity to enter into a PSC for the highly prospective Block EG-23 and further grow our business in Equatorial Guinea. The award of a PSC for Block EG-23, when finalised, will be a complementary expansion of our existing acreage portfolio in Equatorial Guinea. We look forward to partnering with GEPetrol to leverage our collective core subsurface skill sets, increasing our exposure to a broad range of play types, prospects and leads in the vicinity of existing infrastructure.”

Panoro in Equatorial Guinea

Block G (Ceiba Field and Okume Complex)

The Ceiba Field and Okume Complex assets comprise six oil fields offshore Equatorial Guinea. The Ceiba Field commenced production in 2000 and has been developed in phases with the production wells tied back to the Ceiba FPSO. The Okume Complex consists of five separate oil fields developed via four fixed jackets and two tension leg platforms. Processed oil is transported to the Ceiba FPSO for export.

Block S and Block EG-01

Block S and Block EG-01 border the producing Block G fields. In line with Panoro’s infrastructure led exploration strategy the blocks provide access to a large inventory of prospects and leads within tie back distance of existing production facilities.

KeyFacts Energy: Panoro Equatorial Guinea country profile