Faroe Petroleum PLC Update on acquisition of interest in the Ula field (2337H)
August 16 2016 - 2:00AM
UK Regulatory
TIDMFPM
RNS Number : 2337H
Faroe Petroleum PLC
16 August 2016
16 August 2016
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Update on acquisition of an interest in the Ula producing
field
Faroe Petroleum, the independent oil and gas company focusing
principally on exploration, appraisal and production opportunities
in Norway and the UK, announces an update on the acquisition of its
interest in the Norwegian Ula field, part of the package of assets
to be acquired from DONG E&P Norge AS ("DONG").
As announced on 14 July 2016, Faroe has conditionally acquired
interests in five Norwegian producing assets from DONG including a
20% interest in the Ula field and associated production hub
infrastructure (the "Interest"). One of the conditions of the
acquisition was a 30 day pre-emption period under which the partner
in the Ula Field could have acquired the Interest. This period has
now expired and the Company will now proceed towards the completion
of the acquisition as planned.
- Ends -
For further information please contact:
Faroe Petroleum plc Tel: +44 1224 650 920
Graham Stewart, CEO
Stifel Nicolaus Europe Tel: +44 20 7710 7600
Limited
Callum Stewart/Ashton
Clanfield
RBC Capital Markets Tel: +44 20 7653 4000
Matthew Coakes/Daniel
Conti/Roland Symonds
FTI Consulting Tel: +44 20 3727 1000
Edward Westropp/Tom
Hufton
Notes to Editors
The Company has, through successive licence applications and
acquisitions, built a substantial and diversified portfolio of
exploration, appraisal, development and production assets in
Norway, the UK and Ireland.
Faroe Petroleum is an experienced licence operator having
operated several exploration wells successfully in Norway and the
UK and is also the production operator of the Schooner and Ketch
gas fields in the U.K. Southern Gas Basin. Faroe recently applied
to be operator of two producing fields in Norway, Trym and Oselvar,
which the Company has agreed to acquire from DONG Energy. Faroe
also has extensive experience working with major and independent
oil companies both in Norway and in the UK.
The Company's substantial licence portfolio provides a
considerable spread of risk and reward. Faroe has an active E&A
drilling programme and has interests in five principal producing
oil and gas fields in the UK and Norway, including the Schooner and
Ketch gas fields and the Blane oil field in the UK, and interests
in the Brage and Ringhorne East fields in Norway. Full year average
production for 2016 is estimated to be between 7,000 boepd and
9,000 boepd. In July 2016 the Company announced the acquisition of
a package of Norwegian producing assets from DONG Energy including
interests in the Ula, Tambar, Oselvar and Trym fields which
together produced just under 10,000 boepd in the first four months
of 2016.
In November 2013 and March 2014 Faroe announced the Snilehorn
and Pil discoveries in the Norwegian Sea in close proximity to the
Njord and Hyme fields. More recently, in July 2016 the Company
announced the Brasse discovery next to the Brage field in
Norway.
Norway operates a tax efficient system which incentivises
exploration, through reimbursement of 78% of costs in the
subsequent year. Faroe has built an extensive portfolio of high
potential exploration licences in Norway which, together with its
established UK North Sea positions provides the majority of
prospects targeted by the Company's sustainable exploration
drilling programme.
Faroe Petroleum is quoted on the AIM Market of London Stock
Exchange. The Company is funded from cash reserves and cash flow,
and has access to a $200 million reserve base lending facility,
with a fully funded committed drilling programme through 2016.
Faroe has a highly experienced technical teams who are leaders in
the areas of seismic and geological interpretation, reservoir
engineering and field development, focused on creating exceptional
value for its shareholders.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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