PA Resources & EnQuest Terminate Farm out Agreements

Source: www.gulfoilandgas.com 2/2/2015, Location: Africa

In May 2013 PA Resources and EnQuest signed Sale and Purchase Agreements for the transfer of 70% interest in each of the Didon producing oil field and the Zarat Permit to EnQuest. In July 2014, PA and EnQuest completed the Didon transaction with the remuneration retained in escrow awaiting a letter of non-objection from the Tunisian authorities. Despite repeated verbal assurances from the Tunisian authorities that such a letter was imminent, none has yet been issued. The back-stop date of 31 January has now passed and the Didon transaction has been reversed. The $23 million held in escrow has been returned to EnQuest and PA Resources is 100% owner of the Didon concession. As a consequence, the transaction in respect of the Zarat Permit also terminated on 31st January.

The collapse in world oil prices has meant that Didon is currently cash flow negative and this situation will worsen as wells decline until a campaign of infill drilling can be undertaken, which will require a substantial investment in the field. PA Resources is currently looking at alternatives for reducing the negative cash flow from Didon, including shutting the field in until oil prices recover. The results of the Didon option planning will be shared with the company’s creditors in the context of the current refinancing negotiations.

The Zarat discovery is the largest undeveloped hydrocarbon discovery in Tunisia and its development is important to offset the decline of indigenous gas production in the country. Over the last year, PA has worked closely with ETAP in developing a Plan of Development for Zarat that meets the country’s gas needs while dealing with the large quantities of carbon dioxide in an environmentally sustainable manner. The Plan of Development is now largely complete and PA will continue to progress the Zarat Field development including examining alternative ways of funding the development.

The Board of PA Resources has decided to delay publication of the year-end report until 26 February, at which time the termination of the transactions with EnQuest will be reflected.

For more information about related Opportunities and Key Players visit North Africa Projects


Finland >>  7/18/2024 - Fortum has signed an agreement to sell its recycling and waste business to the thematic impact investment firm, Summa Equity through its portfolio com...
Canada >>  7/17/2024 - Canadian Net Real Estate Investment Trust (“Canadian Net” or the “Trust”) (TSX-V: NET.UN) is pleased to announce the successful sale of five gas stati...

Canada >>  7/17/2024 - Tuktu Resources Ltd. ("Tuktu" or the "Company") is pleased to announce the completion of the farm-in arrangement previously announced on April 17, 202...
France >>  7/17/2024 - - Emergence of two pure players, among the European leaders in their respective segments and key actors in the hydrogen sector in France;
- Fina...


Niger >>  7/17/2024 - TotalEnergies announces that its subsidiary TotalEnergies EP Nigeria signed a sale and purchase agreement (SPA) with Chappal Energies for the sale of ...
United States >>  7/17/2024 - LLOG Exploration Company, L.L.C. (“LLOG”), a privately-owned exploration and production company focused on the deepwater Gulf of Mexico (“GOM”), annou...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gulf Oil and Gas
Copyright © 2023 ICT All rights reserved. - Terms of Service - Privacy Policy.