Faroe Petroleum Share Discussion Threads

[whites123] 28/7/2017 08:11

Dont we all "KNOW" that an RNS signifying Delek have increased again is on the cards.

The newsflow has been superb, the share is just so lightly traded (Under the radar) that it fails to respond to the depth of news.

Its been called LUDICROUSLY cheap.
I think any of us who have even performed minimum research would agree with that.

[soulsauce] 28/7/2017 07:50

So good they said it twice ;-)

[bountyhunter] 28/7/2017 07:31

just gets better and better here, let's hope that Delek don't put a spanner in the works as they did with Ithaca when Stella came onstream, just need management to kick them into the long grass unless they make any kind of decent offer which based on my experience of IAE imho is very unlikely!

[whites123] 28/7/2017 07:22

As has been stated in certain press outlets already The share price of Faroe is "Lucicrous". !!!!


Acquisition of Further Interest in UK Blane Field
RNS Number : 3573M
Faroe Petroleum PLC
28 July 2017

28 July 2017



Faroe Petroleum plc



("Faroe", "Faroe Petroleum" or the "Company")



Acquisition of a further Interest in UK producing Blane Field


Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, is pleased to announce the conditional acquisition of a further 13.9935% interest in the Blane Field in the UK North Sea ("Blane Interest") from JX Nippon Exploration and Production (U.K.) Limited ("JXN") for a total consideration of $5.25 million (the "Acquisition").



Highlights



o Value accretive: consideration of $5.25 million corresponds to approximately $5.0/boe; value synergies include greater profitability, tax efficiency and enhanced debt capacity

o Strategic fit: deal consolidates Faroe's existing Blane position to in aggregate a 44.5% non-operated interest; high quality 420 API oil, tied-back to Ula (Faroe 20%), one of Faroe's key hubs

o High margin field: Blane is a low operating cost field and the derived 2016 EBITDAX attributable to the Blane Interest was $5.4 million.

o Upside potential: Blane had 2016 gross production of approx.2,900 boepd and has potential to grow reserves, extend field life and reduce unit opex



Blane was discovered in 1989, and is located on the Central Graben of the UK continental shelf, extending into the Norwegian sector. Production commenced in September 2007 from a Tertiary Palaeocene Forties sands reservoir with a structural closure. The field has been developed as a sub-sea tie-back to the Ula platform (Faroe 20%), located on the Norwegian continental shelf (34 kilometres to the north east), and currently comprises two horizontal production wells with gas lift and one water injection well.



The 13.9935% interest in the Blane Field is derived from a 17.0653% interest in UK Licence P111 covering Block 30/3a (upper).

The Acquisition is expected to complete before the year-end and is subject to UK regulatory approval, the approval of the Blane joint venture partners and the resumption of production after the completion of certain scheduled sub-sea works this summer. The Acquisition consideration of $5.25 million, prior to working capital adjustments from the effective date of 1 January 2017, is to be funded from existing cash resources.

The Blane Field is operated by Repsol Norge AS and the other joint venture partners are Dana Petroleum (BVUK) Limited and Repsol Sinopec Resources UK Limited.



Graham Stewart, Chief Executive of Faroe Petroleum, commented:



"We are pleased to announce this Acquisition, which further increases our stake in this low cost, high quality and long life asset and at a fair value of $5.0 per boe. Raising our stake again in Blane, offers significant upside potential as we realise synergies through Blane's use of our key Ula hub; increasing net production, reducing average operating costs, increasing profitability and providing access to further reserves potential from the field. The transaction is also very tax efficient for us, providing shelter for both past and future tax losses in the UK. Faroe continues to advance a number of key projects in and around the Ula hub area, all of which will serve to extract greater value from this particular deal through improved operating synergies.

[dahhad] 28/7/2017 07:06

More good news!

[wbodger] 27/7/2017 15:46

#305 about Delek: SP has languished somewhat since their last increase

Just an observation: the last Holdings notification from Delek (15/06) reported their holding at 15.101%. The FPM Website shows currently 15.37%, and the figure shown for their holding is exactly a million larger than on TR-1. I assume they have added shares but have not passed the next reporting milestone (although that wouldn't explain why the website figure gets updated realtime - it could just be a reporting typo).

If the website is correct it looks as if Delek are continuing to buy shares. It makes sense to declare a decent chunk periodically rather than a million at a time.

I'm not convinced about a seller and cannot understand why an institution would be divesting by retail sales into this market. Obviously at around this share price (85) an big holder might be better off phoning Delek to negotiate a clean exit at market price. (Perhaps that is what's going on, setting the price?)

[uncertain times] 27/7/2017 11:26

CWA1Hello and for sure

[bountyhunter] 27/7/2017 10:17

Yes if Delek have been buying or selling don't they need to notify the market if they cross either 16% buying or 15% selling and then for every 1% boundary crossed? (as an existing holder of > 3%)

[ed 123] 27/7/2017 08:55

Hi Yasrub.

Level 2 yesterday afternoon? I didn't make any notes, sorry.

Today ..... Sellers had been active earlier this morning but met buys, so price held. No one is pushing it either way atm. Maybe it sticks around this level till we get more news (either oil price or those holdings statements)?

[cwa1] 27/7/2017 08:18

Hello UT

Leaving aside the obvious details of costs/potential down time, etc. I think the partners will be wanting a share of that cash too...

[uncertain times] 27/7/2017 08:14

30,000 barrels per day from Brasse? That equates to nearly $550,000,000 per annum with brent at $50 per barrel. If that can come on-stream by 2020/21 then this company looks very undervalued at present. Certainly vulnerable to a takeover at these levels.

[fardels bear] 26/7/2017 21:03

You don't think that the increase was due to Brent finishing at just shy of $51, do you?

Make life a lot simpler if it were just that.

[yasrub] 26/7/2017 17:28

SP finished stronger, do not have level 2 so perhaps Ed will be aware whether the seller slowed up this afternoon. Holding updates must be looming so this might enlighten us to Delek's intentions.

I would guess they have added, news flow has been very good and the share price has languished somewhat since their last increase so it would seem to be an opportune time for them.

[fardels bear] 26/7/2017 17:04

Been there, felt that.

[corrientes] 26/7/2017 15:08

There's always a 'hot' sector ; after all the market maker companies have to make their bread somehow. Just now, oddly enough given the negative sentiment towards the oil sector, it happens to be in a small area of the spec side. Dreams of avarice can be allowed to incubate and infect the healthy mind until a doze of reality hits in further along the road,leaving longer term damage for the many.

[fardels bear] 26/7/2017 14:50

You're not alone... I'm too old for risky plays. UKOG up and down like a well, I'm sure you know as well as I do.

[ed 123] 26/7/2017 14:43

Reminds me a bit of 2000. I wouldn't join the tech stock boom; kept to the old world stocks. Tech stocks went to crazily high valuations and conversely the old world stocks became very cheap.

I witnessed the insanity of it, daily for months on end.

Eventually the crash came for tech, but my stocks prospered.

It's not exactly the same with UKOG and Faroe but it has a bit of that feel about it.

I need to show that patience again.

[soulsauce] 26/7/2017 13:45

UKOG now overtaken FPM - ludicrous.

[fardels bear] 26/7/2017 13:07

I didn't touch UKOG either. Just watched smugly waiting for the drop... Been kicking myself at not buying on the retrace at 2.2p... BUT, you'd have to watch the monitor every second of the day to hit sell when the inevitable happens, but of course, you'd not get a sale until it hit the bottom, so I thought it best avoided.

Slowly slowly catchee (the fat) monkey..

[plentymorefish] 26/7/2017 12:35

Malcy's still keen:

Faroe Petroleum
Faroe continue to display exploration success which is the envy of the market place, over a long period of time they have regularly delivered and have done so again with this sidetrack well on Brasse. The result of the 31/7-2S well has been announced and as expected it has franked the form of the original discovery and volumes have been increased. Resource range has increased from 43-80 mmboe to 56-92 mmboe in high quality reservoir sands of high grade crude similar to that of the Brage field, with 18m of oil and 4m of gas.
The result provides excellent field economics at low hydrocarbon prices and the development has fast track potential with both Brage and Oseberg fields only 13km away for tieback purposes. With this infrastructure advantage the company can realistically think of first oil in 2020/21 and at a higher rate of over 30/- boe/d the capex should come in at around the $550m currently anticipated. At a share price of 85p and a market cap of £303m this stock is ludicrously undervalued on any conceivable basis, the sector may be out of favour but be warned, it could go the way of Ithaca which at these prices would be a travesty.

[soulsauce] 26/7/2017 11:23

Ed thanks for your thoughts. I wouldn't touch UKOG either. When reality sets in that even IF there is a lot of mobile oil there, it is going to take years to get it out and a lot of wells each of which will be challenged strongly by local planning committees and environmentalists.

Hopefully once the seller is gone here we can get back closer to 100p

[yasrub] 26/7/2017 10:10

I'm pleased it was not bad news :-)

Sometimes the market puts two fingers up and if there is a seller so be it.

I think the company operationally has had an extremely good year. Perhaps there is something happening in the background - I will sit tight and see what develops.

[ed 123] 26/7/2017 10:08

Hi Soulsauce.

UKOG ???? I wouldn't touch it .... but that's just me.

Confirmation, if we needed it, that stockmarket valuations can be all over the place.


Fwiw, Peel Hunt ups target price from 110p to 115p today. Reiterates "Buy".

The seller is not listening, though. Sell side gets replenished when buys hit.

Hey, ho. What to think?


Where are those holdings statements?