OilVoice - PA Resources Sells Norwegian Subsidiary to Bayerngas

PA Resources Sells Norwegian Subsidiary to Bayerngas

01 December 2008

PA Resources has signed an agreement with Bayerngas Norge AS to sell all its assets in Norway for a cash consideration of approximately USD 220 million. The transaction will considerably strengthen PA Resources’ financial position.

The oil and gas company PA Resources AB has signed a Share Purchase Agreement concerning the sale of its wholly owned subsidiary PA Resources Norway AS including all assets on the Norwegian continental shelf to Bayerngas Norge AS, a subsidiary of the German gas company Bayerngas GmbH. The total sales price amounts to approximately USD 220 million in cash consideration (equivalent to approx. SEK 1,750 million).

The transaction will considerably strengthen PA Resources’ financial position and its ability to successfully develop its production licenses in the years to come. The transaction confirms the inherent value of PA Resources’ portfolio of oil and gas assets.

"We have a strong belief in PA Resources Norway – both the potential of the licences as well as the competent and experienced organisation. However, PA Resources has chosen to prioritize operations in other countries as part of a general overview of the Group’s strategy. The ongoing consolidation of the Norwegian oil industry will continue and there will be fewer but stronger oil- and gas companies in Norway. We are convinced that Bayerngas Norge will be one of the successful companies", says Ulrik Jansson, President and CEO at PA Resources.

As part of the strategic overview, PA Resources will mainly focus on development of its production assets in North- and West Africa, combined with exploration activities. PA Resources will maintain exploration operations in the south North Sea with focus on the United Kingdom, Denmark and the Netherlands.

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