Presentation

PetroNor E&P is an Africa-focused independent E&P company, created through the merger of listed African Petroleum and privately held PetroNor in August 2019. The combination created a full-cycle E&P company, with producing assets offshore Congo and Nigeria with exploration assets in Senegal and The Gambia, as well as Guinea Bissau following an acquisition from Svenska Petroleum in late 2020. As of year-end 2020, the company had 10 mill bbl of 2P reserves and average net production of 2,400 bbl/day. The company is listed on the Oslo Stock Exchange with a market cap of USD 140m.

Currently, the majority of the company’s production stems form the PNGF Sud block offshore Congo. As of year-end the company held a 10.5% WI, however in mid-February it announced two transactions potentially increasing the ownership stake to 16.8%. This would increase 2P reserves by 60% to 16 mill bbl and est. 2021e production to 3,850 bbl/day. As SG&A would be fairly unchanged, this would result in solid improvements in cash flow.

The PNGF Sud block has seen continuous improvements since PetroNor entered the field in 2017 and Perenco assumed operatorship. Gross production has increased from less than 15,000 bbl/day to about 23,000 bbl/day in 2020, with further increases expected from infill drilling and enhanced recovery activities. In addition, PetroNor has the right to enter the neighbouring PNGF Bis license with Perenco, which holds gross 2C resources of 29 mill bbl. In late 2019, PetroNor acquired a stake in Aje field from Panoro (still pending ministerial approval) which produces about 2,300 bbl/day gross and has high growth potential ahead. In addition to the potential of the exploration portfolio, the company anticipates further M&A activity with a target of net production of 30,000 bbl/day and 300 mill bbl of 2P reserves within three years.