Norwegian Energy Company (Noreco) has entered into an agreement to sell its 20 percent share of license PL435 on Haltenbanken to OMV (Norge) AS.
License PL435 contains the gas discovery Zidane-1 which was made in 2010. This discovery is estimated to contain between 5 and 18 billion standard cubic metres of recoverable gas. The second exploration well in the license is named Zidane-2 and is planned to be drilled later this year.
Noreco will receive a consideration of NOK 180 million upon completion of the transaction. Under the agreement Noreco is also entitled to a volume-dependent consideration if a discovery on Zidane-2 proves commercially recoverable volumes of hydrocarbons beyond certain levels. This conditional amount is payable upon approval of a Plan for Development and Operations (PDO) which includes Zidane-2.
The transaction is subject to approval by Norwegian authorities.
180 million Norwegian kroner = 32.0724 million U.S. dollars
[mappress] Source: Noreco, October 21, 2011