Faroe Petroleum Share Discussion Threads

[ed 123] 16/8/2018 09:25

Ta, Vikingbhoy.

The Faroe board can appoint additional directors at any time. Any such new directors would need to be re-elected (if shareholders agree) at the next agm. So, I'd conclude that DNO have already had this discussion and been rebuffed. The EGM request will put it to the vote. Maybe DNO are testing the shareholder body, seeing how many would vote against Faroe's management? Might help in determining their bid strategy (if a bid is to happen)?

I wonder if DNO might want to replace the Chairman, John Bentley, too? They voted against his re-election at the AGM.

DNO will grow their cash even faster with the planned increase in Kurdistan output. Come the end of the moritorium period, will they have sufficient resources to bid successfully for the other c. 71% of Faroe? It may be a stretch. Another year's cash generation would make it more comfortable ..... but Faroe will have advanced operationally by then, making it worth more.

Maybe they'll never bid? Faroe could be just a passive investment for them? .............. But, then why would they want seat(s) on the Faroe board?

Interesting times.

[thedudie] 16/8/2018 09:10

With thanks to catsick ...
GMP now have a £1.80 target price and access to their flash research/notes

[vikingbhoy] 16/8/2018 08:17

"DNO retains indirect interests in North Sea assets through its 28.23 percent
strategic stake in Faroe Petroleum plc and, given the size of its shareholding,
will request seats on the board and has asked for an extraordinary general
meeting to be called for this purpose."

newsweb.oslobors.no/message/457299

[catsick] 16/8/2018 05:20

Apparently there is a small premium faroe are paying to the well cost but not a lot according to gmp research report

[wbodger] 15/8/2018 23:25

I just edited my post without reading yours, RedRossi. I was interested in the Neptune angle because: why not also take Apache's stake in P1763 ? Perhaps they will wait for the drill ?

[redrossi] 15/8/2018 14:45

The way I read it this well will be drilled at “Sole Cost” meaning Apache do have a right to come back into if they want, depending on how the JOA is written this could likely be a multiple of say 4 times the well cost ie 50% of $15m = $7.5mm x 4 = $30mm to buy into the this prospect/area of the licence. This “buy in” would then be shared with Azcat, Cairn and FPM

[wbodger] 15/8/2018 11:38

It is odd that Apache are not taking part in this drill in their licence area.

Presumably if HCs are found there would be a rewrite of licence P1763 so that a new Plantain licence would be owned 50% by Cairn, AzCat 25%(operator) and Faroe 25%;
and P1763 (including Alpha) would become P1763a: Apache 50%, Cairn 25%, AzCat and FPM 12.5% each. (Please challenge if that is not right.)

Edit 11PM: Another story (Monday's date) has Apache divesting Seagull and Isabella assets to Neptune Energy. I think Apache previously announced it wanted to shift from North Sea offshore to Shale in the US.

More important news for me is #1079 about Rungne, back to back with Brasse East.

[thedudie] 14/8/2018 12:46

Looks like this deal gives Faroe access to the Alpha prospect as well at 12.5%
31-50m recoverable (according to AzCat's video)
hxxp://azinorcatalyst.com/p1763-agar/

td

[ed 123] 14/8/2018 12:19

I'm surprised that Serica didn't buy this 25%. A commercial discovery could keep Bruce and Keith facilities running longer. (Assuming the Bruce, Keith, Rhum deals complete eventually ..... though there's no guarantee.)

[thedudie] 14/8/2018 10:42

I would guess the cost is little more (if anything) than well cost share. Looks like Azinor Catalyst wanted to reduce their share significantly and needed to do it quite quickly. Not sure on Catalyst's funding but maybe they have a low appetite for risk!
Well was committed in May, they farmed out 50% to Cairn in June and 25% to Faroe in Aug. Well to be drilled later in Aug.

Some useful upside

td

[catsick] 14/8/2018 08:15

No mention of what is being paid for this stake which means its pretty tough to evaluate the deal ...

[bountyhunter] 14/8/2018 07:22

25% farm in announced to UKCS Agar Plantain exploration and appraisal well due to be drilled later this month.

[bountyhunter] 08/8/2018 08:46

good update, progressing on many fronts

[rogerlin] 08/8/2018 08:11

the Transocean Arctic drilling facility, which will now proceed to production licence 248 I in the North Sea, to drill wildcat well 35/11-21 S, where Wellesley Petroleum AS is the operator

Looks like Faroe have the TA after this for Rungne and Brasse East.

[oto1] 07/8/2018 16:01

DNO's Kurdistan operations is going very well, and we may actually see an export of 150k boed at year end.
That is up from 106k/d in average 1h, and current production of 121k/d.

So share price in DNO I believe has just started.

In our "community" we all believe that there will be an offer for Faroe in November, either all cash or partly DNO shares to those who prefer that.

I would prefer having the settlement in DNO shares, but guess it is equally difficult to trade shares at OSE for UK shareholders, as it is for Norwegians to trade on LSE/AIM.

This will be some interesting months.

PS: DNO's cash position is definately building each month, and an all cash offer is within reach.
DNo also currently hold 35 mln own shares.

[vikingbhoy] 07/8/2018 13:34

The thing about DNO is that it gets a very high cash flow from Kurdistan because of the risk. If DNO firmly believes that cash flow will continue (and I think they do) they are not going to find anyone else who is willing to pay enough to make it worthwhile because of the risk. Basically DNO thinks the market overestimates the risk, so instead of selling they will use that cash flow to expand elsewhere. A more diversified DNO can then have both the high cash flow from Kurdistan and a reduced risk perception in the market due to geographic diversification.

I also think Faroe will fight, but Faroe has a weak shareholding structure so not sure how much they can do. Will be interesting to see in November

[wbodger] 07/8/2018 13:26

Not sure that quite answers me. Tawke/Peshkabir will have its value set by stability/instability in Kurdistan and the suitors would be major oil companies. DNO shareholders could get enough cash to continue growing an oil company which would be geographically better balanced if that's what he wants. Faroe's operation would still be attractive, but perhaps ideally to a Norway-focused company.

I agree about a bid. I just think Faroe will fight to remain where they are.

[vikingbhoy] 07/8/2018 12:35

DNO has protection from any hostile bids since the chairman of the board controls the largest shareholder in DNO. Dont think he`s interested in selling at anywhere near the current price for DNO. He`s very interested in diversifying geographically, which explains the interest in Faroe and also interest in Iran (although the latter is presumably dead for now). Bought a small stake in Faroe today since I assume a bid is coming and it seems like easy money

[wbodger] 07/8/2018 10:51

Peshkabir might explain DNO:
hxxps://newsweb.oslobors.no/message/456268

Faroe is only miserable compared to recent speculative highs. It might have occurred that DNO could be taken out themselves for Tawke/Peshkabir by someone not interested in the Norway operation.

[churchill2] 07/8/2018 09:27

Hi Harry

Odd that the two prices are at such variance.

DNO at its high in Norway and the Faroe share price looking rather miserable.