Faroe Petroleum Share Discussion Threads

[sludgesurfer] 19/4/2018 13:01

Interesting moves of late over at PMG. Are Tom's sour pups looking more attractive?I doubt Nexen will ever take their sour crescent over Scott, no matter how many studies they do. They were stung too badly by the enormous additional capex requirements of Buzzard. Off topic i know, but pertinent here given FPM have written off their stake in PDL and PMG hold a significant stake here.I'm interested to see how it all pans out...the Scott was my first trip offshore and i logged (what became) the first Buzzard exploration well. I'll never forget the excitement onboard.

[bountyhunter] 19/4/2018 09:28

Brent on a roll now at $74.33 :-)

[jasper2712] 17/4/2018 12:44

Trying their best to hold it back but the fundamentals are showing through - worth a lot more

[ed 123] 16/4/2018 22:26

Ta, Wbodger. :-)

I don't know about JP Morgan, but some work to their own understanding of the notification rules, though. Eg. see Ophir Energy's after hours holdings notifications today.

Can it be right for SailingStone Partners to reduce their holding on 15th November 2017 and then reduce further in stages but only notify Ophir Energy today?



Do the LSE rules permit that delayed reporting?

[wbodger] 16/4/2018 19:38

re JPM, they have only been notifiable since July 2016, when they took a chunk of shares in FPM's placement at 70 pence/share to raise cash for the DONG assets acquisition (Holding RNS dated 20/7/16). That took JPM's holding from 'unnotifiable' past 5% to 6.89% (just under 25 million total). It looks as if JPM and Henderson participated in the placement (both previously unnotifiable) but Henderson left within a year.

This declaration takes JPM back below 5%, but as you say (Ed123) it looks as if it takes them back below 3% too.

My guess is JPM bought at least 15 million shares in the 2016 placement, for 70 pence each, and sold at least - say - 11 million (3%) 20 momths later for a tidy 55 pence profit. They might have checked out their whole holding, which reached 7.36% last July but had since fallen to 5.18% according to the RNS. There should have been two RNSs at the 7% and 6% threshholds but I haven't looked.

(DYOR, of course, just me figuring.)

[thegreatgeraldo] 16/4/2018 16:33

Given the rise over the last couple of years, larger holders probably see DNO as providing a liquidity event. Us peasants can get in & out pretty much as we please, if you hold several per cent of FPM, getting in or out is likely to move the price.

[ed 123] 16/4/2018 16:19

Oli12.

Yes, wouldn't disagree with your first paragraph but the cash and debt capacity (plus the $100 million bond?) are earmarked to pay for development to get them up to 35(?)mboe production.

Valuation? Perhaps 175p but only when all the developments are completed and producing? 3 years from now? Also, the market may not meet this valuation?

Valuation now? 120 to 135p?

I can see why some are taking the 125p now.

[ed 123] 16/4/2018 16:09

JP Morgan say they've gone from holding 5.18% of Faroe's equity to under 5%.

Faroe's website shows major holders down to 3% but I don't see JP Morgan there.

Anyone understand this?

[rogerlin] 16/4/2018 16:05

Not new but I don't think this has been posted before.

[oli12] 16/4/2018 11:19

Market capitalisation currently is around £465 million. We have no debt, circa £100m cash and a mixture of assets either in production or underdevelopment.

The board are right 125 is way too cheap.

175p is probably a fare figure.

[thedudie] 16/4/2018 10:50

That may be all they get for a while.
Looks like they will only buy at 1.25

Puts a bit of a floor under and looks like it puts people off trying to sell to buy back .....

Be interesting to see what the price does with some news ....acquisition or operational

td

[thegreatgeraldo] 16/4/2018 10:41

FPM's announcement this morning simply confirming Friday's DNO announcement.

[oli12] 16/4/2018 09:53

Surprised the price not moving up due to the DNO interest. Market clearly does not expect a bid. Maybe DNO are surprised the price has stayed around the 125 level.

[gersemi] 16/4/2018 09:08

DNO upped again

[rogerlin] 14/4/2018 08:56

Rak appear to hold 40% of DNO.

[oli12] 14/4/2018 07:17

I think if Faroe tried a large placing to purchase an asset say for e.g the 20% of Catcher that MOL apparently has ‘for sale’ then I guess DNO would argue that there has been a material change of circumstances as per there their statement of no bid and then bid anyway offering shareholders a way out.

For me one of Faroe biggest assets is the management team, I would only want to buy Faroe with them on board, in place and committed to delivering these projects.

I see a merger of sorts.

[thedudie] 13/4/2018 22:33

I am guessing Faroe will buy something sizeable ...probably production maybe UK to act as protection... Sizeable placing at current price and dilution of DNO.

They stated "Opportunities to accelerate further growth through potential value-accretive acquisitions and disposals also continue to be a key focus for the Company going forward."

This may have more urgency now...

With further production their borrowing base probably increases ... they will need more cash for Fogelberg and anything else that comes in.

td

[ed 123] 13/4/2018 21:32

Thegreatgeraldo.

Yes, I see your point regarding timing of the Board's statement. However and not at all wishing to appear dismissive, I'm not too bothered about timing. For me what matters is that Faroe's board say 125p substantially undervalues the Company, whereas almost 29% of holders, by virtue of their selling at that price, disagreed. To me, whether they decided to sell before (and I agree that most would have done) or after Faroe's statement doesn't matter. I don't value any of my shares at a level that directors might wish. I make my own decision. Faroe's directors were making a pre-emptive defence and that's fair enough but I would expect shareholders to have their own price in mind.

[thegreatgeraldo] 13/4/2018 20:53

Ed 123
13 Apr '18 - 20:32 - 823 of 823
0 0 0

Faroe's directors have told shareholders of all sizes that they think 125p undervalues the business. However, to date, almost 29% have gone against the Board's view and sold to DNO.

Not at all. DNO had probably completed their tender offer by the time FPM put their announcement out. (Tender offer announced just after market close 4/4. FPM statement released at 18:20 4/4)

[ed 123] 13/4/2018 20:32

Faroe's board of directors only hold less than 1% of the shares, so they will not determine Faroe's independence.

Faroe's directors have told shareholders of all sizes that they think 125p undervalues the business. However, to date, almost 29% have gone against the Board's view and sold to DNO. That says a lot.

I wonder if some of this bailing out may relate back to the placings? There were raisings at 165p, 120p and 70p, with the shares eventually bottoming out around 45p. For those who paid up in the latter two raisings, an exit at 125p would see them in profit and, for all holders, the DNO price is about three times the low point (of only about 2 years ago).

Fwiw, I think DNO will continue to add, up to 29.99%, but without the agreement of the Board they will not go to 30% within 6 months of their 'no bid' statement. (With DNO having such a chunk of the shares I don't see any other party coming onto the scene.)

So, it's a very interesting time for Faroe and, one way or another, my guess is that Faroe gets taken over within a year. Price? 125 - 135p? but possibly a bit more if there's any good drilling news during the year.

[oli12] 13/4/2018 19:10

Interesting top up from DNO. So they bought Delek Groups shares amounting to just over 15% for 1.25p. They then announce that they do not intend to make an offer for Faroe Petroleum despite wanting to buy another 10% for 1.25p via a tender - due to the volume of stock tendered they manage to reach a holdings of just over 27%.
Today they have reached the 28.71% level - I wonder if it was their intention to buy this many OR have they been surprised by the number of sellers at 1.25p despite the board saying this significantly undervalues the company.
Will DNO now try to reach a deal with the board IMO the “no intention to bid statement” can be side stepped by simply reaching a deal with the board of Faroe - Faroe is run by a very good management team - any purchaser would want to keep them onboard.
I see things developing here quickly, the board of Faroe will be stronger than Ithaca hopefully.

[bountyhunter] 13/4/2018 19:08

interesting timing! clearly heading for the 29.9% mark from the 28.7% hit with that buying

[cwa1] 13/4/2018 18:04

Late announcement:-