DNO ASA, Oslo, agreed to acquire 15.37% of the share capital of Faroe Petroleum PLC from Delek Group Ltd.
The acquisition covers all Faroe Petroleum ordinary shares held by Delek, totaling 56,355,825, at a price of £1.25/share for an aggregate purchase price of £70.4 million.
DNO reentered the North Sea upstream business in 2017 through the acquisition of Origo Exploration Holding AS after a 6-year hiatus during which the company built its Middle East presence anchored by DNO-operated Tawke field in the Kurdistan region of Iraq (OGJ Online, Feb. 9, 2018,May 5, 2017).
Following Norway’s latest Awards in Predefined Areas (APA) 2017 licensing round, DNO holds interests in 19 exploration licenses offshore Norway and the UK (OGJ Online, Jan. 17, 2018). The company plans to also pursue additional investments and partnerships with established North Sea players.
Faroe Petroleum, focused on exploration, appraisal, and production activities in Norway and the UK, had stated 2P reserves at yearend 2017 of 97.7 million boe and 2C resources of 78.6 million boe. The company’s 2017 production averaged 14,300 boe/d.
At yearend 2017, on a company working interest basis, DNO’s 2P reserves stood at 384.1 million boe and 2C resources at 98.9 million boe, with 2017 average CWI production of 73,700 boe/d.