BWEG will acquire Harvest subsidiary Harvest Dussafu, which owns a 66.667% operated interest in the Dussafu production-sharing contract (PSC) covering 210,000 acres offshore Gabon, for $32 million in cash.
Panoro subsidiary Pan Petroleum Gabon has a memorandum of understanding to sell a 25% interest in the PSC to the same buyer for $12 million, after which it would retain an 8.33% stake in the license.
In addition, Panoro will obtain a capped limited recourse development loan from BWEG to fund expenditures through first oil production in 2018. Panoro anticipates total capex to first oil of up to $150 million.
The deal remains subject to approval by the Gabonese government, but is expected to close during 1Q 2017.