Faroe completes deal for offshore Norway interests at lower price

Faroe Petroleum has completed its acquisition of interests in five producing oil and gas fields in the Norwegian North Sea from DONG E&P Norge.

Offshore staff

ABERDEEN, UKFaroe Petroleum has completed its acquisition of interests in five producing oil and gas fields in the Norwegian North Sea from DONG E&P Norge.

These are Ula (20%), Tambar (45%), Tambar East Unit (37.8%), Oselvar (55%), and Trym (50%).

Net consideration payable at completion was around $26.7 million, far below the originally agreed tentative figure of $70.2 million.

Faroe assesses remaining net proved and probable reserves from these interests as of Jan. 1, 2016 at 19.8 MMboe with average net economic production over the 11 months to Dec. 1, 2016 of around 9,900 boe/d.

CEO Graham Stewart said: “The acquisition of these producing fields creates a new strategic hub for Faroe, centered around the Ula platform, in one of our core areasoffshore Norway; synergies have already been realized with the upcoming development of our Oda field, announced last week, which will be tied back subsea to Ula.

“This transformational deal paves the way for Faroe’s evolution into a full cycle E&P business fit for the modern industry as we continue to grow the value of the company through exploration, development, and production...”

12/07/2016

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