Further to the announcement dated 21 October 2019, PetroNor E&P Limited
(“PetroNor” or the “Company”) (OSE ticker: “PNOR”) is pleased to announce that
it has now finalised and entered into the separate investment and shareholders
agreement with the OML 113 operator, Yinka Folawiyo Petroleum (“YFP”) (the “YFP
Agreement”). The purpose of the YFP Agreement is to form a partnership and a
jointly owned special purpose vehicle (“SPV”) named Aje Petroleum AS (“Aje
Petroleum”) to focus on the revitalisation and further development of OML 113
and the Aje oil and gas field, offshore Nigeria (“Aje Field”).

The YFP Agreement sets out the contribution by YFP and YFP Deep Water (“YFP DW”)
of their shareholding in the companies holding the YFP and YFP DW participating
and economic interest in OML 113 to the partnership and the SPV. Similarly,
PetroNor will contribute its shareholding in companies holding its participating
and economic interest in OML 113, which is being acquired from Panoro Energy
ASA. Following completion, Aje Petroleum will hold a 75.5% participating
interest and an average economic interest in the order of 38.7% in OML 113, with
an initial 29% economic interest at the onset of the transaction. Additional
details on licence interests are provided in the attached appendix.

The ownership of Aje Petroleum is to be shared between YFP and PetroNor on the
basis of a 55% and 45% shareholding respectively. Governance is established via
a board consisting of five directors (the “Aje Board”) with two nominated by
each of YFP and PetroNor and one independent director. One of YFP’s nominated
directors will be the Chairman.

YFP, as the operator of OML 113, will engage Aje Petroleum as a technical
service company. A joint project management team will be established by the Aje
Board and be led by a member nominated by PetroNor (the “Technical Manager”). An
early deliverable will be the agreement of a workplan and budget in relation to
the operations of OML 113. 

The completion of the YFP Agreement is subject to authorisation of the Nigerian
Department of Petroleum Resources and consent of the Minister of Petroleum
Resources.

Jens Pace, Chief Executive Officer of PetroNor said: “This agreement is a key
step in establishing a means to create partner alignment around our proposed
concepts for the future development of the Aje Field. It builds on PetroNor’s
successful business development track record of gaining access to opportunities
by presenting commercial and technical solutions to asset owners in order to
enhance value. In this case, it has led to the creation of a special purpose
vehicle with majority local content that is focused on realising the value of
OML 113. Following government approvals, the Company will advance plans for
increasing liquids production, and developing the discovered gas resources.” 

Knut Sovold, Chief Operating Officier of PetroNor and incoming Technical Manager
for Aje Petroleum, said: “The fundamentals of the Aje Field are very
encouraging. As part of our due diligence for the transaction our technical team
has looked closely at various development plans to fully monitize the Aje Field.
We are looking forward to working closely with our partners on the licence to
review and approve these plans.”

Eyas Alhomouz, Chairman of Petronor and incoming board member of Aje Petroleum,
said: “We are very happy working with YFP and their advisor Redcliff Energy
Advisors in the joint effort to finalise this agreement. We look forward to
aligning with rest of the licence partners and the government of Nigeria for the
future development of the Aje Field.”

*****

For further information, please contact:

Jens Pace, Chief Executive Officer
Stephen West, Chief Financial Officer
Tel: +44 20 3655 7810

Media Contacts:
Buchanan
Ben Romney/Chris Judd
Tel: +44 207 466 5000



APPENDIX

The following table summarises participating, voting, and economic interests
within the OML-113 licence for different periods. During “Period 1” where the
revenue interest of Aje Production is 29.0663%, there is an agreed schedule for
repayment of historical costs to YFP from production revenue (expected to be
fulfilled within three years).  The revenue interest of Aje Production then
increases to 38.755% in “Period 2”, and then 54.0663% in “Period 3”.

                            OML-113 Summary of Participating, Voting and
Economic Interest	
                                 	    Period 1: Prior	 Period 2: Post     Period
3: Post
                           All Period         to YFP payout         YFP payout  
   Project payout
	           Participating     OPEX     CAPEX  Revenue      OPEX   Revenue     
OPEX   Revenue   
                        Interest Interest  Interest Interest  Interest  Interest
 Interest  Interest 
Aje Production JV.      75.5020% 38.7550%  38.7550% 29.0663%  38.7550%  38.7550%
 54.0663%  54.0663%

Based on the above table, net production to PetroNor from it’s share of Aje
Petroleum is estimated to be initially 320 bbls/day, with net 2P reserves of 0.3
mmboe and net 2C resources of 18.7 mmboe.