Panoro and GEPetrol sign contract for Block EG-23 offshore Equatorial Guinea

Panoro Energy signed a production sharing contract (PSC) with the government of Equatorial Guinea for offshore Block EG-23. Panoro now holds an 80% participating interest and operatorship of Block EG-23. It is partnered by GEPetrol, which holds a 20% participating interest.

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 sq km in water depths ranging from 50–100 m, 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.

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 which, based on existing data, are estimated by the Ministry of Mines and Hydrocarbons to hold contingent resources of approximately 104 million barrels of oil and condensate and 215 billion cu ft of gas.

Panoro and GEPetrol have been awarded block EG-23 for an initial period of three years during which they will conduct subsurface studies based on existing seismic data to further define and evaluate the prospectivity of the block. Following this, the partners will have the option to enter into a further two-year period, during which they will undertake to drill an exploration well.