Completion of acquisition of interests in UK Blane and Enoch fields

Source: Faroe Petroleum

Blane is a good quality producing field, well known to the Company and which offers upside potential in the form of increasing reserves, production and field life.

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the UK and Norway, is pleased to announce that it has completed the previously announced acquisition of Roc Oil (GB Holdings) Limited (“Roc”), which holds a 12.5006% interest in the Blane Unit in the UK North Sea and a 12.00% interest in the Enoch Unit in the UK North Sea

A description of this acquisition was announced by the Company on 1 September 2015 and a summary is set out below:

Acquisition summary

  • Post-Acquisition Faroe will hold in aggregate a 30.5047% non-operated interest in the Blane Unit (Pre-Acquisition interest 18.0041%) and a 13.86% non-operated interest in the Enoch Unit (Pre-Acquisition interest 1.86%)
  • Initial consideration of $17 million, based on an effective date of 1 January 2015, reduced to $13.7m  at completion after working capital and other corporate adjustments
  • The Blane Oil Field (P111-Block 30/3a (Upper), UK North Sea) (“Blane”) is an established oil field with considerable upside potential to increase production, grow reserves and extend field life
  • The Enoch field is currently suspended and is planned to be brought back on stream in Q4 2015

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

“We are very pleased to announce the completion of this acquisition, which gives a further boost to our oil and gas production portfolio.

“Blane is a good quality producing field, well known to the Company and which offers upside potential in the form of increasing reserves, production and field life.  The transaction is also tax efficient, allowing us to accelerate the use of our tax losses in the UK and is in line with our strategy to grow our production portfolio and to continue the efficient funding of Faroe’s committed exploration, appraisal and development programme.”

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