PA Resources (PA) engaged SLR to support its Tunisian offshore permit Farm-Out process. SLR provided technical, strategic and commercial support working alongside both the PA team and external advisors.
Engage a financially strong and technically competent partner to participate alongside PA in the operation and development of both permits.
Cover a portion of the cost of on-going exploration and development funding via cash and development carry.
Participated in a peer review of the draft plan of development to identify and resolve gaps in advance of launching the farm-out process.
Developed sales materials including the information memorandum and management presentation in association with PA staff.
Prepared a virtual data room in support of the marketing of the assets.
Provided strategic and commercial advice during the negotiation of the sale to Enquest. This included advice on negotiation tactics, commercial review of terms and input to the Sale & Purchase Agreement.
Drafted a Coordination Agreement to govern the joint activities of PA and Enquest on the permits.
SLR assisted PA in attracting a high quality licence partner and in achieving financial and contractual terms for the sale which compared favourably with recent benchmark deals in Tunisia. PA announced its successful farm-out of a 70% share in the Didon and Zarat offshore permits in Tunisia on 29th May 2013 for an upfront cash consideration of USD 23 million and additional payments of up to USD 226 million based on development success.