Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the UK and Norway, has stated that it has completed the previously announced acquisition of Roc Oil (GB Holdings) Ltd (Roc), which holds a 12.5006% interest in the Blane Unit in the UK North Sea and a 12.00% interest in the Enoch Unit in the UK North Sea.
Post-Acquisition Faroe will hold in aggregate a 30.5047% non-operated interest in the Blane Unit (Pre-Acquisition interest 18.0041%) and a 13.86% non-operated interest in the Enoch Unit (Pre-Acquisition interest 1.86%). Initial consideration of US$17 million, based on an effective date of 1 January 2015, reduced to US$13.7m at completion after working capital and other corporate adjustments.
The Blane Oil Field (P111-Block 30/3a (Upper), UK North Sea) (Blane) is an established oil field with considerable upside potential to increase production, grow reserves and extend field life. The Enoch field is currently suspended and is expected to be brought back on stream in 4Q15.
Graham Stewart, Chief Executive of Faroe Petroleum, commented: “We are very pleased to announce the completion of this acquisition, which gives a further boost to our oil and gas production portfolio. Blane is a good quality producing field, well known to the Company and which offers upside potential in the form of increasing reserves, production and field life. The transaction is also tax efficient, allowing us to accelerate the use of our tax losses in the UK and is in line with our strategy to grow our production portfolio and to continue the efficient funding of Faroe’s committed exploration, appraisal and development programme.”
Edited from press release by Angharad Lock
Read the article online at: https://www.oilfieldtechnology.com/exploration/06112015/faroe-petroleum-completes-roc-oil-acquisition-479/