Norwegian Energy Company ASA (Noreco) has announced that its fully owned subsidiary Noreco Norway AS (Noreco Norway) has entered into a Sale and Purchase Agreement with Det norske oljeselskap ASA for the sale of its remaining exploration licences, employees and a cash balance of ca. NOK 45 million, to be adjusted for working capital. The effective date of the transaction is 1 January 2016.
Subject to completion, the proposed transaction, (together with the previously announced Enoch transaction; reference is made to the press release of 21 December, 2015) will constitute a ceasing of all of Noreco Norway’s petroleum activities. Added to the proceeds from the Oselvar sale this is expected to result in an estimated recovery of approximately 94.7% of the initial principal amount under the NOR06 bond issue.
The transaction entered into with Detnor is conditional on approval from NOR06 bondholders. Pertaining to this, Noreco has received pre-acceptance and voting commitments for the transaction from major bondholders holding a majority of the outstanding bonds. A summons to a bondholder meeting to formally approve the transaction will follow shortly. Additionally, the proposed transaction is conditional upon approvals by the Ministry of Petroleum and Energy and the Ministry of Finance.