16th Jan 2019 10:45
LONDON (Alliance News) - Faroe Petroleum PLC on Wednesday said it inked a partnership with subsidiaries of Royal Dutch Shell PLC and Spirit Energy Ltd for the development of the large, cross-border Edinburgh prospect.
Faroe, which expects its shares to be cancelled from trading on February 14, following the hostile takeover by Norwegian oil company DNO ASA, will hold a 45% stake in the partnership. Shell will hold a 40% interest and Spirit a 15%.
Following cancellation, Faroe will be re-registered as a private limited company.
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.
"On a preliminary, unaudited basis, Faroe's management estimates the Edinburgh prospect to have material volumes with potential for standalone development," the company explained.
Faroe shares were trading up 0.1% at 160.20 pence each.