Lekoil has made a payment of $3 million as part of the Consideration to Panoro for proposed acquisition of a 6.502 per cent participating interest. Lekoil and Panoro have agreed that the Company will fund the escrow with the balance of the consideration on or before 31 of October 2013.

The Company is in advanced discussions with potential debt providers to fund the balance of the Consideration.

The Company has issued an addendum to the bid bond which will allow Panoro to draw an additional $3million if the escrow is not funded by October 31 2013. In the event that the Consideration has not been paid by 31 October 2013, Panoro may elect to grant another extension or terminate the SPA, retaining the $3million bid bond and $3million paid into escrow. The closing date of the transaction is expected to be November 9th 2013.

Tags: Lekoil, Panoro Energy