Norwegian Energy Company (Noreco) has entered into an agreement to sell its 20 percent share of licence PL435 on Haltenbanken to OMV (Norge). Licence 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 licence 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.

Tags: Norwegian Energy Company ASA