22nd Sep 2014 08:30
LONDON (Alliance News) - Faroe Petroleum PLC said Monday that it has sold its 10% stake in the undeveloped West of Shetland Glenlivet gas field to Total E&P UK Ltd for GBP10 million.
The independent oil and gas company, which primarily focuses on exploration, appraisal and production opportunities in Norway and the UK, said it has sold the interest in line with its strategy to "monetise our exploration successes to the Company's greatest economic benefit."
The GBP10 million consideration has an effective date of January 1, 2014, of which a proportion is deferred until the submission of the field development plan and certain production targets being achieved, said the company.
The 2009 West of Shetland gas discovery is situated in the Faroe Shetland Basin in water depths of around 500 metres, approximately 35 kilometres north east of the Laggan gas field and 19 kilometres north of the Edradour gas discovery. Glenlivet is planned to be developed in conjunction with the Edradour field as part of the wider West of Shetlands Laggan and Tormore gas development, sanctioned in 2010 and operated by Total E&P UK Limited.
Total also operates the Edradour discovery and has recently acquired a 60% interest in Glenlivet and taken over operatorship from DONG E&P UK Ltd.
"Total's West of Shetland gas development project to export gas from Laggan, Tormore, Edradour and Glenlivet is a highly capital intensive investment in infrastructure, and one of the most significant UK upstream investments in recent years," said Faroe Petroleum CEO Graham Stewart, adding that "Faroe's timely transaction will release significant capital for investment in Faroe's high impact exploration and appraisal portfolio."
Shares in Faroe Petroleum were Monday trading 1.03% higher at 109.87 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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