Faroe Petroleum plc, the impartial oil and fuel firm focusing principally on exploration, appraisal and manufacturing alternatives in Norway and the UK, is happy to announce that it has executed a transaction with Suncor Energy Norge AS (Suncor) for the sale of a 17.5% working curiosity within the Fenja improvement, situated in PL586 within the Norwegian Sea. Highlights of the transaction are as follows:
- Faroe to promote 17.5% stake within the Fenja improvement to Suncor for money consideration of $54.5 million (together with tax balances);
- Faroe to retain 7.5% stake in Fenja, underlining Faroe’s assist for the challenge, and totally aligning Faroe’s fairness at 7.5% throughout the Greater Njord Area (Njord, Fenja, Bauge and Hyme);
- Transaction is anticipated to cut back Faroe’s future capital expenditure on Fenja to roughly £70 million (primarily based on the operator’s gross projected improvement price of NOK 10.2 billion);
- Maintains Faroe’s robust stability sheet and totally funded place throughout its portfolio of Norwegian area developments.
Faroe stays totally dedicated to the Fenja improvement and believes the entry of Suncor additional demonstrates the attractiveness of the challenge on a stand-alone foundation and Faroe’s remaining curiosity in Fenja will now be totally aligned with its current 7.5% working curiosity within the Greater Njord Area. As detailed within the Plan for Development and Operation (PDO) submitted on Dec. 19, 2017, the operator, VNG Norge AS, expects whole gross recoverable reserves from the Fenja improvement of roughly 97 MMboe (72% of which is oil).
The transaction has a Jan. 1, 2018, efficient date and stays topic to the standard and customary circumstances together with regulatory approval of the switch and approval of the Fenja PDO by the Norwegian Ministry of Petroleum and Energy. The transaction is anticipated to finish throughout H1 2018.
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