Panoro Energy ASA (the “Company” or “Panoro” with OSE ticker: “PEN”) is pleased to report that, further to its announcement of 2 November 2017, its fully-owned subsidiary Pan Petroleum Aje Limited (“PPAL”) has entered into a definitive and binding settlement agreement (the “Agreement”) with the other OML 113 joint-venture partners (the “Aje JV Partners”). This Agreement resolves and settles the dispute between the Aje JV partners and PPAL in relation to drilling of new development wells.
The highlights of the Agreement include:
- All JV Partners have agreed to halt and withdraw all litigation and arbitration proceedings among the partners;
- PPAL will not pay for any Aje-6 costs that have been incurred by the JV, until such time the equipment and parts are to be used in any potential future well operations;
- Substantial court costs already awarded to PPAL to be retained and any remaining balances credited in favour of PPAL; and
- PPAL’s US$ 1.5 million cash security deposit held with UK Courts Funds Office will be returned.
John Hamilton, Chief Executive Officer of Panoro, said
“We are very pleased to have reached this out-of-court settlement agreement. In combination with the interim measures announced in November, this amicable and pragmatic approach finally resolves the longstanding dispute. We believe this outcome is a positive development for Panoro and our Aje JV Partners. With this issue behind us, our utmost priority is now to realise the significant potential of the Turonian Gas Development.”
Further details of the Agreement are as follow:
- The Agreement is in full and final settlement of the claims made in the English and Nigerian litigation proceedings as well as in the arbitration proceedings that had been commenced during the dispute (the “Proceedings”);
- The Aje JV Partners will take all necessary and reasonable procedural steps promptly to terminate the Proceedings;
- Where costs in respect of any of the Proceedings have been ordered by a court to be paid to PPAL, to the extent that such costs have not yet been paid to PPAL, such costs will be credited to PPAL;
- The injunction granted to PPAL on 2 December 2016, and confirmed on 20 January 2017, (the “Injunction”) shall be discharged;
- PPAL shall be entitled to the immediate release of its undertaking recorded in respect of the Injunction and PPAL shall be entitled to the immediate return of the US$ 1.5 million deposit with the UK Courts Funds Office as security of its cross-undertakings in respect of the Injunction, together with all interest, if any, accrued thereon;
- Save as stated below, PPAL shall pay its share of current cash calls in accordance with the arrangements referred to in the previous announcement of 2 November 2017; and
- PPAL shall not pay for any costs unpaid by it in relation to the Aje-6 development well expenditure incurred prior to 20 December 2017 until such time as the equipment, good or service the subject of the expenditure had been utilised in any potential new well petroleum operations on or after 20 December 2017.
Source: Press Release