17th Jan 2019 15:31
LONDON (Alliance News) - Faroe Petroleum PLC on Thursday said it has been awarded eight new prospective exploration licences in the Norwegian North Sea.
These licences include the cross-border Edinburgh prospect, in which it holds a 45% stake, while Royal Dutch Shell PLC holds 40% and Spirit Energy Ltd holds 15%.
Faroe will operate the Edinburgh Area licences up until a final well decision is taken by the partners, after which Shell will become licence operator.
The licences also include the Elysium prospect, in which which Faroe holds a 40% stake and is operator, while OMV AG holds 20%, Equinor ASA 20% and Spirit 20%.
Faroe was also granted licences for the Portishead prospect, in which is hols a 40% stake and is operator, as well as the Griffon Vulture Prospect in which it holds a 30% stake.
Licences were also awarded for a number of areas in which Faroe's stake is 20%, namely the Iris/Hades and Ula extensions, as well at the Sata prospect.
An extension was also awarded the Tor extension, in which Faroe is 85% owner and operator.
"We have further consolidated our position in core areas of the Norwegian continental shelf in which we have delivered recent exploration success," said Faroe Chief Graham Stewart.
"We look forward to high-grading these new licence opportunities in the coming period. This good quality new exploration acreage, together with our enhanced production portfolio and development pipeline, ensures that our shareholders are exposed to a well balanced and sustainable set of growth opportunities going forward," Stewart added.
Shares in Faroe will be cancelled from trading on Valentine's Day after a hostile takeover by Norwegian oil company DNO ASA.
DNO's final offer for Faroe was 160 pence per share, putting the value of the offer at GBP641.7 million.
Stewart, as well as Chief Financial Officer Jonathan Cooper and Chief Operating Officer Helge Hammer gave a three month notice of termination from their roles in the company on Friday last week.
Shares in Faroe were down 0.6% at 160.00 pence on Thursday afternoon.