Faroe Completes acquisition of Norwegian production assets

Faroe Completes acquisition of Norwegian production assets

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, announced that it has completed the previously announced acquisition of interests in five Norwegian North Sea producing oil and gas fields, Ula (20%), Tambar (45%), Tambar East Unit (37.8%), Oselvar (55%) and Trym (50%) (the “Acquisition”) from DONG E&P Norge AS (“Dong”).

The net consideration payable at completion was approximately $26.7 million, down from the previously announced original consideration of US$70.2 million, reflecting both Economic Production from 1 January 2016, which has outperformed previous expectations and other working capital adjustments.

Remaining Proved and Probable Reserves from the acquisition as evaluated by the Company as at 1 January 2016 were 19.8mmboe net to Faroe Petroleum, while the preliminary average Economic Production for the eleven months to 1 December 2016 net to the Company was approximately 9,900 boepd. We now take this opportunity to upgrade our 2016 guidance with a narrower range from 17,000 to 18,000 boepd, including Economic Production from the Acquisition.

Source / More: Faroe Petroleum

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