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Faroe Petroleum Closes Acquisition of UK Blane, Enoch Fields Stakes.


9 November 2015 - UK-based oil and gas company Faroe Petroleum Plc has closed acquisition of Roc Oil (GB Holdings) Ltd. 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, the company said.

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 USD 17m, based on an effective date of 1 January 2015, reduced to USD 13.7m at completion after working capital and other corporate adjustments

The Blane Oil Field (P111-Block 30/3a (Upper), UK North Sea) 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 4Q15.

John Wood, UK asset manager of the company with over fifteen years' experience of the oil and gas industry and who holds an M.Sc in Petroleum Engineering from Imperial College, has read and approved the technical disclosure in this regulatory announcement.

The company has, through successive licence applications and acquisitions, built a substantial and diversified portfolio of exploration, appraisal, development and production assets across the Atlantic margin, the UK and Norwegian North Sea, Norwegian Sea, Barents Sea and the Celtic Sea.

Faroe Petroleum has experience working with major and independent oil companies and its joint venture partners include BP, Centrica, E.ON Ruhrgas, GDF, Maersk, OMV, Repsol, Shell, Statoil, Total, Tullow and Wintershall.

The substantial licence portfolio provides considerable spread of risk and reward.

Faroe has a very active drilling programme ahead and it currently has interests in six principal producing oil and gas fields in the UK and Norway, including interests in the Schooner and Ketch gas fields and Blane oil field in the UK, and interests in the producing Njord, Brage and Ringhorne East fields in Norway.

Full year average economic production for 2015 is estimated to be between 9,500 boepd and 10,500 boepd1.

Faroe Petroleum is funded from cash reserves and cash flow, and has access to a USD 250m borrowing base facility, with a fully funded drilling programme through 2016.

Country: UK

Sector: Petroleum/Natural Gas/Coal

Target: Roc Oil (GB Holdings) Ltd.

Buyer: Faroe Petroleum Plc


Deal size in USD: 13.7m

Type: Corporate Acquisition

Financing: Cash

Status: Closed

Buyer advisor: , ,

Comment: Acquired company 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

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Publication:M & A Navigator
Geographic Code:0NORT
Date:Nov 9, 2015
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