4th Jun 2007 07:01
Faroe Petroleum PLC04 June 2007 4 June 2007 Faroe Petroleum plc ("Faroe Petroleum", or "Faroe") NOK 120,000,000 Credit facility for Norwegian Exploration and Appraisal Faroe Petroleum, the independent oil and gas company focusing on exploration,appraisal and production in the Atlantic Margin, the North Sea and Norway, ispleased to announce that it has entered into a NOK 120m (approximately £10m)revolving credit facility with Bank of Scotland to finance the first phase ofits Norwegian exploration and appraisal programme. In 2005 the Norwegian Tax authorities introduced a favourable tax structuredesigned to encourage exploration. Under this scheme, exploration-focusedcompanies such as Faroe Petroleum can recover 78% of exploration- andappraisal-related expenditure in the following tax year. Under the terms of therevolving credit facility 75% of all Faroe's exploration, appraisal andsupporting expenditure in Norway will be met by Bank of Scotland, therebysubstantially increasing the Company's capital available for investment inNorway activity. Graham Stewart, Chief Executive of Faroe Petroleum, commented: "This facility ensures that Faroe Petroleum will maximise the benefits ofNorway's recent exploration-focused tax changes and frees up our own cashresources. We are very pleased to be working with the Bank of Scotland, withwhom we have a long-standing relationship." Euan Tait, Associate Director, Bank of Scotland, commented: "Bank of Scotland Corporate is delighted to support Faroe Petroleum's excitinggrowth aspirations in Norway and we very much look forward to continuing ourexcellent relationship with the company as Faroe Petroleum continues to developand grow". Enquiries: Faroe Petroleum plcGraham StewartTel: 01224 652 [email protected] Financial DynamicsBilly CleggTel: 0207 269 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Faroe Petroleum Plc