PetroNor Successfully Completes NOK 340 Million Private Placement

Proceeds of USD 40 million enable completion of value accretive acquisition of additional interest in PNGF Sud and ensure PetroNor is fully funded for near-term infill drilling program

Reference is made to the stock exchange release by PetroNor E&P Limited (OSE ticker: “PNOR”) on 11 March 2021 regarding a contemplated Private Placement (the “Private Placement”) of new shares in the Company. PetroNor is pleased to announce that it has successfully raised NOK 340 million of new equity through a Private Placement of 309,090,909 new shares (the “Offer Shares”) in the Company. The Private Placement was significantly oversubscribed at a price per Offer Share of NOK 1.10 (the “Offer Price”).

The Private Placement received strong interest from new investors, including institutional investors and private family offices in Norway and internationally. Petromal Sole Proprietorship LLC and related group companies (“Petromal”), the Company’s main shareholder owning 38.28% of all issued and outstanding shares in the Company, subscribed for Offer Shares at the Offer Price for an amount of NOK 130.2 million, which corresponds to their 38.28% pro-rata share of the Private Placement.

The Private Placement will generate NOK 187.4 million (USD 22.1 million) in cash and NOK 152.6 million (USD 18.0 million) as in-kind consideration for contingent acquisition of all of Symero Limited’s (“Symero”) shares in Hemla Africa Holding AS (“HAH”) (the “Symero Transaction”). Symero is owned by NOR Energy AS, a company owned by Knut Søvold, CEO of the Company, and Gerhard Ludvigsen.

The net cash proceeds from the Private Placement will be used to finance drilling of infill wells and other increased oil recovery initiatives on PNGF Sud and general corporate purposes.

Commenting on the Private Placement, Eyas Alhomouz, Chairman of PetroNor said:

“We believe the support for this Private Placement reflects the quality of the Company’s portfolio and sound rationale for the acquisition of an additional interest in PNGF Sud. The asset is already the cornerstone asset of the Company and the robust economics of the asset, coupled with the high return near-term work program scheduled for later this year, make for a compelling investment proposition. As per the recent independent CPR, the asset provides PetroNor with material upside potential that we are now better placed to target over the longer-term. By underpinning the business with more low-risk production, cash flow and reserves, we will be better placed to accelerate the vision of establishing PetroNor as a premier, full-cycle, Pan-African operator.

We were particularly pleased with the interest we received in the process and thank the investors, existing and new, who participated in the Private Placement and look forward to delivering long-term sustainable value through disciplined execution of PetroNor’s growth strategy.”

Information Source: Read Full Release

Press Release by: