Israel’s Delek buys stake in Faroe
- Business & Finance
Israeli conglomerate Delek Group has bought 13.18% of the share capital of Faroe Petroleum from Dana Petroleum as part of its strategy to extend its international activities in the energy field.
According to the purchase agreement, Delek bought all the Faroe shares Dana owned, in total 48,055,825 ordinary shares of GBP 0.10 each at a price of GBP 0.89 per share for an overall consideration of GBP 42.77 million (approx. NIS 200 million or $51.6M).
Faroe is an oil and natural gas exploration and production company operating in the North Sea. The company’s portfolio of gas and oil assets includes about 60 drilling, evaluation, development and production licenses for oil and gas in the North Sea, in Norway and the UK, in some of which it acts as operator.
Faroe has no controlling shareholder and upon completion of the acquisition Delek will be the largest single shareholder in Faroe.
As of January 1, 2016, Faroe’s resources (P2) stood at 61 mmboe (61 million barrels of oil equivalent), and following completion of a transaction for the acquisition of additional assets in December 2016 proven resources are expected to increase by 20 mmboe.
Asaf Bartfeld, President and CEO, Delek Group: “This is another important step in the implementation of Delek Group’s strategy to become an international energy company, with significant activity in the fields of oil and gas exploration and production. Acquisition of the Faroe shares is synergistic with and complements the purchase of 20% of the shares of Ithaca, which we did about a year ago. Delek Group’s financial strength allows us to identify strategic expansion opportunities, by which we are working to increase the value we provide to Delek Group’s investors.”