Faroe Petroleum Share Discussion Threads

[costax1654x] 04/7/2018 17:04

Drilling technologyA test of its DT Ultravert technology at a parent well in the US's Permian basin was completed successfully in February.The technology has shown it can restore reservoir pressure in both horizontal and vertical wells used in the 'fracking' process.The process involves the injection of nitrogen gas into an existing well at the same time as a new nearby well is fracked.It is designed to prevent the older well from being damaged (known as bashing) by the new one.HNR holds 75% ownership in patents of the DT Ultravert technology, which has a net present value (NPV10) potential of between US$78mln to US$135mln subject to further testing and commercialisation.According to Highlands chief executive Robert Price, the testing of DT Ultravert in the Permian basin, which he described as "the most important shale play in the United States today", will catch the attention of the company's peers in the industry.Production milestones surpassed in East DenverThe company isn't just in the business of commercialising well technology, it also produces from its own operations.In April, HNR said it had secured a natural gas sales deal for its East Denver Niobrara project in Colorado.The project, as of the period ended March 31, has generated net revenue of US$3.8mln, with production figures placing it within the top 3% of all Niobara wells in Colorado.The Wildhorse and Powell wells, located within the East Denver project, surpassed a milestone of 100,000 barrels of oil equivalent in 64 days following initial production in December 2017.HNR has also received permission to increase the number of wells at the project up to eight.The project can also count on a US$58.5mln commitment from a US oil and gas focused private equity group to support an expansion of up to 24 wells at the site.According to HNR, the East Denver project has an NPV10 range for six wells of between US$23.3mln to US$30.1mln.An estimate for the full 24 wells sees this estimate increase to between US$96.6mln to US$124.5mln.To put that into context, Highlands' market cap stands at £26.9mln at 21.1p.Gas and helium potential in MontanaHNR also has its own gas operation in the form of the Helios Two project in Montana.While still in production testing, an update on 1 February revealed that gas production rates had "intermittently peaked" at up to 216,000 cubic feet per day of gas.A 2017 assessment provided an NPV of the project of up to US$341mln across a 69,120-acre area.At a recent federal auction, HNR acquired an additional 116,488 acres of the project area, expanding its footprint to 221,973 acres.In addition to the gas reserves, helium has also been discovered at the project with a content of 0.36%, similar to the Hugoton gas field in Kansas.If developed, HNR expects the helium resource to provide a strong upside to the NPV of Helios Two.A US$8.5mln programme is expected to advance development of the project which could see up to 24 wells in place.

[rogerlin] 04/7/2018 08:32

Good for Faroe to have a strong partner at Brasse and may perhaps wish to sell down the interest as 50% may be rather a lot?

[thedudie] 03/7/2018 12:04

Peel Hunt appear to have upped target price to 174p ... and moved to Buy from Add

td

[wbodger] 02/7/2018 11:46

The referee has his finger in his ear, I think they're checking ... no, it's all clear, VAR is our new partner in Brasse.

[bountyhunter] 01/7/2018 10:03

Brent header chart contract rolled

[bountyhunter] 29/6/2018 11:58

agreed, look how many threads spammed with that!

[thegreatgeraldo] 29/6/2018 11:46

Always a sign of desperation when the same poster spams the site with the same nonsense

[ssrover] 29/6/2018 11:25

All the action at UKOG folks. David Lenigas bought £500K worth yesterday (I'm sure he's privy to info). UKOG went from 1p-11p last year.

UKOG last time went into double-digits and that was on a drill. This is flow rates for 'the one'

[harry rags] 29/6/2018 11:25

Oil now $79 ?

[thegreatgeraldo] 29/6/2018 10:11

Thinking about it, not sure what the rules are above 30%. AIUI, any offer must be made available to all shareholders via a takeover bid, which is an expensive exercise. Not sure DNO could just tender for 5-10% at a small premium to the prevailing price if they were at 30% ?

[bountyhunter] 29/6/2018 09:42

Not so sure it would make any sense to make an offer below the market price as in your example if they exceeded a 30% holding. Also why would any shareholders accept an offer below the market price?

[oto1] 29/6/2018 09:06

bountyhunter

DNO may well pass 30% and make an offer.
There is no "law" saying they will have to make an offer everyone will accept.

Let's say they manage to get hold of 3-4% more at 1,40.
They can then make an offer for 1,40
How many that actually will accept such an offer I don't know.
5%-10% more?
And they can continue to do this.
They can also make private deals with the institutional owners, and possibly swap DNO shares with FP shares.
I would assume some of these would be interested in DNO shares as they are very liquid (around 10m GBP average turnover per day on OSE).
Many ways of doing this.

[bountyhunter] 29/6/2018 08:40

This comapany is a gem, quite successful on it's own and Brasse yet to come!

[bountyhunter] 28/6/2018 13:41

#1022
Oto, re your option 2, DNO cannot after the 6mths grace period "continue to buy shares in Faroe, and when getting close to or above 50% start to change board members and then make a bid for FPM" since as soon as they exceed 30% they must table a bid.

[wbodger] 28/6/2018 13:35

Thanks for that correction about RAK oto1, now I remember it's on the DNO website. (Oslo companies have regularly report their 25 largest shareholders I think?)

rogerlin is right, since FPM is quoted on AIM, DNO have very little room for buying more. If they were to bid for control and fail they would have to get themselves back below 30%, so they would have to pitch an offer at a price that would satisfy big holders. (Blackrock, Aviva etc.)

[bountyhunter] 28/6/2018 09:00

cheers, in that case it will be worth checking with my provider

[royaloak] 28/6/2018 08:52

any one know if DNO shares may be held in an ISA?


I assume so, I buy loads of overseas shares in my ISA.

[rogerlin] 28/6/2018 08:48

•When a person or group acquires interests in shares carrying 30% or more of the voting rights of a company, they must make a cash offer to all other shareholders at the highest price paid in the 12 months before the offer was announced (30% of the voting rights of a company is treated by the Code as the level at which effective control is obtained

I think they have to bid if they buy more than 30%?

[oto1] 28/6/2018 08:30

Just my comments to some points:
- DNO's largest shareholder is RAK Petroleum having just over 40% (not 30).
- DNO obviously voted against re-election of John Bentley, and I believe this is because of the fact that the board obviously has worked against their new shareholder, by far their biggest.
The board has not offered DNO a seat in the board, and has actively hired Rotschild to "defend" the company against it's biggest owner.
In the future I see 3 options:
1 (Not likely) The 2 parties talk together and gets to an agreement of merger in one way or another.
2 (likely): after the 6 months grace period DNO continues to but shares in Faroe, and when getting close to or above 50% starts to change board members. In the end dictates the merger / take over.
3. (not likely) DNO does nothing more. just sits on the share post and sell it when price is sufficient higher.
No. 3 may be more likely if share price of FP becomes "too high" whatever that number may be.

[bountyhunter] 28/6/2018 07:46

any one know if DNO shares may be held in an ISA?