On October 30th 2007,PGNiG Norway A/S, the Polish Oil and Gas Company's subsidiary has acquired from Mobil Development Norway A/S and ExxonMobil Production Norway Inc interests in PL212, PL212B and PL262 licences encompassing Skarv and Snadd fields in the Norwegian Continental Shelf, together with rightsand obligations under a number of agreements concerning the fields.
The Licences were acquired following the agreement dated February 28th 2007 between the Polish Oil and Gas Company and ExxonMobil. The Company's rights and obligations under the Agreement were assigned to PGNiGNorway A/S under an agreement of October 19th.
PGNiG Norway A/S paid USD 360m (the equivalent of approx. PLN 908.6 million, translated in accordance with exchange rate of October 30th 2007). At the same time, PGNiG Norway A/S paid approx. USD 3.5m (the equivalent of approx. PLN 8.8 million, translated in accordance with exchange rate ofOctober 30th 2007) and approx. NOK170m (the equivalent of approx. PLN 79.9 million, translated in accordance with exchange rate of October 30th 2007) in consideration of settlements and reimbursement (both provided for in the Agreement) of costs incurred by ExxonMobil between January 1st 2007 and October 30th 2007 in connection with the interests in the Licences.
PGNiG Norway A/S financed the acquisition of the Licences with a loan from the Polish Oil and Gas Company and equity contributions made by the Company, which the Company financed with internally generated funds.