Noreco Sells its Norwegian Exploration Activities to Det Norske Oljeselskap
Oslo, Norwegian Energy Company ASA (‘Noreco’) has officially announced that its fully owned subsidiary Noreco Norway AS (Noreco Norway) has entered into a Sale and Purchase Agreement (‘SPA’) with Det norske oljeselskap ASA (‘Detnor’) 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.