Faroe Petroleum Share Discussion Threads

[soulsauce] 26/7/2017 09:30

May be the seller is buying UKOG with the money :-/

That company is worth on £40m less than this - go figure.

[ed 123] 26/7/2017 09:22

Hi Oli12.

The Brasse result met my high expectations and the seller continues to drip shares into the market.

Fwiw, my best guess is for the share price to track sideways from here.

Although I could easily be wrong and end up trapped in a low performing share, I do think it likely that Delek will bid for Faroe one day. Sentiment towards oil stocks is low, so if there is a bid, I don't expect a big premium.

Do I have a gloomy outlook? Yes, but it means I'm less likely to be disappointed.

[wbodger] 26/7/2017 09:18

Dana had 48 million shares when there were 175 million in issue in 2010. Delek bought them all last 22nd December, when they represented 13.186% of 364.5 million. Dana declared another 7.3 million acquisition on June 15, but that RNS was not matched by a holdings declaration from someone reducing. (It's a suspiciously round figure, exactly 7,300,000 from the RNS.)

Delek have 15.37% according to FPM website. So they could acquire another 14.62% without getting to 30%. The latest presentation has a pie chart which shows only 8% of shares in issue are in Retail hands, ie 92% are with Instis. To me that's a remarkably low percentage in 'Retail', although I don't know what that word means.

Tjaldur still has its 3.01%, the lowest of the notifiables. but almost half the shares in issue are with institutional investors holding less than that threshold. (Why would Faroe highlight that in the presentation? I can think of worry to discourage 'investors' shorting for no good reason other than opportunism, but no other ideas. Anyone?)

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re Brasse, I like this in this morning's RNS: "The programme has established excellent reservoir quality and reservoir communication, together with excellent flow rates, even at the periphery of the field."

No indication where 31/7-3 will be spudded though. (Presumably pretty secure now.)

[oli12] 26/7/2017 08:53

Ed.. the share price is currrently up... granted the persistent seller might change this.

[corrientes] 26/7/2017 08:27

To be countered by better oil price sentiment at the moment ?

[ed 123] 26/7/2017 08:25

Up ???

It's going down intraday, atm.

Our seller is back at it.

[oli12] 26/7/2017 08:24

well up she goes. Hopefully the start of a push back towards £1 which I think is a more realistic valuation irrespective of the Delek interest

[bountyhunter] 26/7/2017 07:43

great news, yes logic says it should be a good day but we will have to wait and see as always, my money would be on a good day :)

The preliminary reservoir development plan includes three to six production wells and an optional water injection well for pressure support. Initial flow rates from the prolific Brasse reservoir are expected to be higher than previously thought, with predicted delivery rates above 30,000 boe/d and first oil in 2020/21.

[oli12] 26/7/2017 07:35

The Brasse field keeps on getting better and better for Faroe. Hopefully the market will start to take note. The brasse discovery should enable FPM to meet its target of 50,000 bopd within the next 5 years.

Despite all the positivity and potential interest from Delek the share price does not reflect this.

[whites123] 26/7/2017 07:30

"Looks like it's going to be a very good day"

Whilst common sense would suggest so, consider where we are since the last updates which (IMO) should be placing us at well above todays levels.
If we were sitting at a £1 now I would be disgruntled LOL... So to be sitting sub 80p smacks of lunacy.

Consider also the price at which Delek last added..

Strange? Corrupt? manipulated? What has happened to the markets?
O yes, nothing, just the information is now more readily available to us mug punters.. :-)

But yes: Expecting a good day today. :-)

[cwa1] 26/7/2017 07:30

Some very nice news to start the day. Surely that should knock the price back a bit as usual......

[francis55] 26/7/2017 07:25

Looks like it's going to be a very good day

[whites123] 26/7/2017 07:20

With Delek interest and continued good news exceeding expecatations its strange how the share price behaves?? Surely not manipulated like other Oil stocks (PMO, PVR etc)

Graham Stewart, Chief Executive of Faroe Petroleum commented:

"We are very pleased to announce the completion of this successful, Faroe-operated, appraisal programme of the Brasse field, which considerably exceeded expectations and further confirms the commerciality of this discovery. The programme has established excellent reservoir quality and reservoir communication, together with excellent flow rates, even at the periphery of the field. This new data has resulted in an increased resource range to 56-92 mmboe and a substantial increase to flow rate expectations.

"The Brasse field is clearly a very significant and valuable asset, with very attractive economics even at long term low commodity prices. The close proximity of the field to existing competing infrastructure combined with its prolific reservoir qualities and shallow water depth ensure this field can be developed expediently, taking full advantage of the current low cost environment.

"As an established E&P operator, Faroe is well equipped to progress this important project and we look forward to providing further progress updates in the coming months."

[bountyhunter] 25/7/2017 20:26

Scaff55 - yes it's at 30% when they would have been required to make an offer. Glad I remembered correctly, must be all the alcohol I have drunk - today on the news research has shown that drinking actually improves your (long term) memory!

[scaff55] 25/7/2017 20:21

Just trying to show that bountyhunter was right about the 30 percent post.

[cwa1] 25/7/2017 20:05

19/3/2008?

[scaff55] 25/7/2017 17:51

Published: 20:37
Updated: 20:48 Wednesday 19 March 2008
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DANA Petroleum might be within touching distance of being forced to launch a full takeover bid for Faroe Petroleum after upping its stake in its fellow Aberdeen-based oil and gas explorer.

Dana, which had long held a "strategic" stake of nearly 20 per cent of Faroe, began buying more shares last month, increasing its stake to over 24 per cent.

Yesterday, it revealed it had bought another 3.5 million shares, taking its stake to just over 27.5 per cent. Dana can increase its stake in Faroe to 29.9 per cent before it is required make a full offer.

[scaff55] 25/7/2017 17:21

l remember Dana had there limit at 47 million but there was a lot less shares in issue then.

[bountyhunter] 25/7/2017 17:09

30% to the best of my recollection

[scaff55] 25/7/2017 16:44

There is a limit to the shares Delek or anybody els can buy before they have to make a bid for Faroe,but l have forgot what it is ?.

[rogerlin] 25/7/2017 08:06

Still no announcements. There is a supply ship North Pomor at the rig but the tugs still in Bergen, on we go then.

[gersemi] 24/7/2017 19:56

Should another RNS detailing an increase in Delek's holding is released you should see a decent rally

[wbodger] 24/7/2017 19:41

re Fogelberg (as well as Oda, Yoshi and many others), this change at Centrica looks significant. Looks like they are getting out of exploration:
hxxp://www.offshoreenergytoday.com/centrica-bayerngas-set-up-new-ep-company/

Re Delek, Obviously they are smart enough not to buy small lots on the way down unless it helps their strategy to be seen as a buyer, so the 'dog that didn't bark' is not a worry. If they have an agreement with trading house to buy at a certain price they would not be subject to reporting regulations until the trader handed over the shares, ie probably for a significant change (say 3%). So I'm not reading anything into Delek's silence, IMO it is unlikely they have changed their mind. I posted earlier they would take advantage of weakness to build their stake. (They have all that Stella cash flow to spend!)

Encouraging upturn today - could there be an RNS leaking? (I agree with Ed's three anticipated RNSs in post #254. It is the Delek one I'm waiting for, and I believe the market is too. A worthwhile increase in Delek's holding will get it back to ninety pretty quickly.)