Panoro Acquires Stake in Côte d'Ivoire's CI-27 Block for $86.5 Million

en.Wedoany.com Reported - Panoro Energy has agreed to acquire DNO's subsidiary DNO CI, thereby indirectly obtaining a 9.09% interest in the CI-27 offshore gas production block in Côte d'Ivoire, for a total consideration of $86.5 million (£63.53 million).

Of the consideration, $65.1 million will be paid in cash, with the remainder settled by issuing 7 million new Panoro shares to DNO. The transaction's effective date is January 1, 2025, with completion expected in mid-September 2026.

The CI-27 block is reportedly the largest source of non-associated gas in Côte d'Ivoire, meeting over 70% of the country's natural gas demand. The block is operated by the private company Foxtrot International, which holds a 27.27% working interest in the asset, with block operations being its core business. DNO CI indirectly holds a 33.33% ownership interest in Foxtrot International, with other joint venture partners including PETROCI and SECI.

The block produces condensate and oil from four offshore fields—Foxtrot, Mahi, Manta, and Marlin—with production tied back to two fixed platforms. The offshore facilities have a nominal gas processing capacity of approximately 250 million standard cubic feet per day and an oil processing capacity of 15,000 barrels per day.

The operator is implementing a five-well infill drilling program to enhance ultimate recovery from the Foxtrot field, which is expected to support a production plateau of approximately 190–200 mscf/d; output could potentially increase to around 230 mscf/d if market demand supports it.

Panoro expects the transaction to add approximately 3,287 barrels of oil equivalent per day to its production in 2025, and 3,334 barrels of oil equivalent per day in the first half of 2026. As of the effective date, the net proved plus probable reserves attributable to the acquired interest are 9.4 million barrels of oil equivalent, with net contingent resources of 5.0 million barrels of oil equivalent.

Julien Balkany, Executive Chairman of Panoro, stated that this acquisition continues the company's value-accretive growth strategy. The company previously announced in February the acquisition of an additional interest in the G Block offshore Equatorial Guinea from Kosmos Energy, with the transaction completed in June 2026. Securing this interest in the CI-27 block will deliver substantial reserves and production to Panoro, while further enhancing the geographic and commodity diversification of the company's African portfolio through long-life, gas-weighted production, as well as stable, low-volatility pricing and sales arrangements that are decoupled from oil prices.

Gas from the CI-27 block is sold under long-term fixed-price contracts for power generation in Abidjan, with associated liquids sold to the local refinery. The block's production cost is approximately $6 per barrel of oil equivalent, with around 95% of output being natural gas.

DNO acquired its Côte d'Ivoire operations in 2022 and stated that the transaction is expected to generate an internal rate of return of approximately 24% since entering the region. This acquisition marks Panoro's entry into the Côte d'Ivoire market; the transaction requires no regulatory approvals and involves no pre-emption rights. Advokatfirmaet BAHR is serving as legal counsel to Panoro.