Faroe raises cash for Dong Energy, Brasse
- Business & Finance
Faroe Petroleum, the independent oil and gas company focusing on the North Sea exploration and production has completed the placing of the shares announced on July 14, 2016.
A total of 88,500,000 new Ordinary Shares in Faroe were placed, raising gross proceeds of £62.0 million at a price of 70 pence per Placing Share.
The placing shares will represent, in aggregate, approximately 24.8 per cent. of Faroe’s issued ordinary share capital immediately following admission.
The company will use the proceeds in part in order to fund the acquisition of Dong Energy’s North Sea assets in Norway, and to accelerate Faroe’s recent Brasse discovery towards development sanction.
Graham Stewart, Chief Executive of Faroe Petroleum, said: “I am delighted to announce the successful completion of this oversubscribed placing which has enabled us to acquire a high-value portfolio of producing assets in one of our core strategic areas offshore Norway. As well as providing the funds for the acquisition, the placing proceeds will allow us to progress our recently announced Brasse discovery towards monetization.
“I would like to thank our shareholders for their unerring support for our business and I would also like to welcome the new shareholders to the Company. With the new funds in hand, coupled with our strong balance sheet and cash generative production portfolio, Faroe is now set on a pathway of becoming an independent E&P company of scale, with material upside potential both in terms of drill-bit leverage as well as the progression of our high quality discovered resource base towards commercialisation”