Norwegian operator buys out Faroe shareholding from Israeli group

DNO ASA, a Norwegian oil and gas operator focused on the Middle East and the North Sea, has agreed to acquire a 15.37 percent of the share capital of Faroe Petroleum from Israeli Delek Group.

DNO re-entered the North Sea upstream sector in 2017 through the acquisition of Origo Exploration Holding after a six-year hiatus during which the company built a Middle East presence anchored by its operated flagship Tawke field in the Kurdistan region of Iraq.

The company said on Wednesday that the acquisition covers all Faroe Petroleum ordinary shares held by Delek, totaling 56,355,825, at a price of GBP 1.25 per share for an aggregate purchase price of GBP 70,444,781.

Following Norway’s latest Awards in Predefined Areas (APA) 2017 licensing round, DNO holds interests in 19 exploration licenses offshore Norway and the United Kingdom. In addition to its direct stake in these licenses, the company has disclosed that it will pursue additional strategic investments and partnerships with established North Sea players.

DNO has now decided to build a long-term strategic shareholding in Faroe Petroleum and to support Faroe Petroleum management’s growth focused North Sea strategy.

Faroe Petroleum is an independent oil and gas company listed on the UK’s Alternative Investment Market (AIM) since 2003 and focused on exploration, appraisal and production activities in Norway and the United Kingdom. The company’s portfolio consists of over 60 exploration, appraisal, development and production licences in the West of Shetland, the North Sea, Norwegian Sea and the Celtic Sea.

At year-end 2017, Faroe Petroleum has stated 2P reserves of 97.7 million barrels of oil equivalent (MMboe) and 2C resources of 78.6 MMboe; 2017 daily production averaged 14,300 boe.

At year-end 2017, on a company Working Interest (CWI) basis, DNO’s 2P reserves stood at 384.1 MMboe and 2C resources at 98.9 MMboe, with 2017 daily average CWI production of 73,700 boe.

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