Faroe Petroleum Share Discussion Threads

[rogerlin] 28/8/2018 08:01

There isn't much information as to what origo now consists of.

[bountyhunter] 28/8/2018 07:45

interesting...

"the Chief Executive and the Senior Independent Director of Faroe both wrote separately to DNO earlier this year to offer a meeting but no response was received to either communication."

[harry rags] 28/8/2018 07:39

It could be or an agreed takeover if they get round the table

[mirabeau] 28/8/2018 07:34

Surely this now means a formal bid is on the cards?

[harry rags] 28/8/2018 07:25

Faroe Petroleum PLC DNO Withdraws Faroe General Meeting RequisitionWell I did not see that coming however perhaps some dialogue between the companies would be useful

[linhur] 27/8/2018 22:41

I think the FPM board are now going to fight hard to remain independent as they see the opportunities that their projects could achieve. I also have a reasonable holding and I think DNO would have to offer above 220p per share to acquire FPM at this moment with the strong opportunity of a lot higher offer as the projects are brought to fruition.

DNO seem to be very clever but muddying the waters with an EGM at this time does not appear to be an act to win over suspicious FPM shareholders. Withdrawal of the EGM requisition would make them appear to have overplayed their hand.

Linhur

[bountyhunter] 27/8/2018 18:58

The unannounced bid for Ithaca back in 2012 was however reputed to be at a decent premium. Also as you say they didn't go hostile either whereas DNO may well do.

[bountyhunter] 27/8/2018 16:49

Welcome to the first visitor from Hong Kong, earlier today.

Thread visitors:

[bountyhunter] 27/8/2018 16:42

Yes maybe, I think £2 might just clinch it now but DNO seem to want to buy us out on the cheap and at the same time have suggested that at the same time they would be doing FPM shareholders some kind of a favour! Even Delek didn't have the audacity to suggest that after pursuading IAE to let them buy out the company with their lowball offer at that time. In a year's time as FPM steadily move forwards including toward production at Brasse then £2 might not be enough.
imho

[ed 123] 27/8/2018 15:49

Hmmm ....

Agree, it must have looked to DNO that they would lose the vote.

So, what next for DNO?

If they want the whole of Faroe, then they need at least one other major shareholder on-side, imv. That way, they could launch a hostile bid with a supporting letter of intent from another, say 5 or 10% shareholder.

At what price might Blackrock or whoever, nod to DNO?

Oda to come on-line before the year end?

Further exploration drilling ahead.

Brasse/Extension may prove to be bigger than current estimate?

Share price, arguably, might rise to 170p in year's time without a bid.

Will DNO be kicking themselves in 12 months time for not offering 200p now?

[scaff55] 27/8/2018 15:14

DNO withdraws request for seats on Faroe board, criticises ‘hostile response’

[hopeful holder] 27/8/2018 10:20

https://www.nasdaq.com/press-release/dno-withdraws-request-for-faroe-petroleum-shareholders-meeting-20180827-00032Sim report. FPM are going to spend a lot of time working on defence documents whereas I'd have liked them to work on the continued success of the business.DNO look to be muddying the water somewhat and a pity for doing so.

[bountyhunter] 27/8/2018 09:17

Thanks for posting vikingboy - that's an interesting development - they must have failed to get support from other major shareholders I think and didn't want to lose face by failing to win a vote.

[yasrub] 27/8/2018 08:41

I think disruption will be high on the agenda. It will be interesting to see how FPM management deal with such comments. Having seen some posts about DNO they might sit tight over the coming months/year and build the cash pile from their other operations.

[vikingbhoy] 27/8/2018 07:35

They must have known they didnt have the support for two board members. I wonder if DNO is trying to cause instability on purpose? Would not be beneath them, their executive chairman can be very clever.

[vikingbhoy] 27/8/2018 07:08

Statement by DNO: hxxps://newsweb.oslobors.no/message/458112
slo, 27 August 2018 - DNO ASA, the Norwegian oil and gas operator, today
announced the withdrawal of its request to Faroe Petroleum plc for a meeting of
shareholders of the company in which it holds a 28.23 percent stake, and issued
the following statement:

DNO ASA withdraws the request for an Extraordinary General Meeting to consider
its representation on Faroe Petroleum plc's board of directors and notes with
deep disappointment Faroe Petroleum's repeated peremptory and disdainful
attitude to such representation for, and therefore greater engagement with, its
largest shareholder.

DNO requested a meeting of shareholders to seek suitable representation on the
board of directors of Faroe Petroleum and to raise concerns and dismay about the
wider governance culture and shareholder value strategies of a company in which
DNO has made a very substantial investment.

Now that DNO has highlighted these matters via an Extraordinary General Meeting
notice and given Faroe Petroleum's increasingly hostile public response on 16
August 2018, DNO will not pursue a meeting of shareholders at this time while it
considers its position.

Meanwhile, DNO hopes that Faroe Petroleum's directors will initiate without
further delay a constructive dialogue with DNO, as they should with any large
shareholder, on corporate governance culture and shareholder value strategies,
including board composition.

[bountyhunter] 25/8/2018 10:02

This is why DNO want FPM:



*from the latest presentation

Any guesses what the share price may be at 50,000 boepd should we remain independent (based on today's oil price)?

Current production guidance for 2018 is 12,000-14,000 boepd.

[wbodger] 24/8/2018 15:03

The bogeyman raised in the Rally_no post was the poison pill. Normally a poison pill defence would be when a board invests in something unwise, expensively diluting shareholders and making a takeover unattractive for an unwelcome predator. I don't think Faroe would ever contemplate that, but the idea of a white knight was always attractive. I thought Equinor or Aker-BP might have a look, but DNO seem quite determined and I agree with tgg #1171 the 28% is hard to overcome.

(As one of the fools who took the £1.25, I had added twice just before previous placements and was underwater for ages, and had set myself a reduction price below that. My average is .85 now, so a £1.70 bid on the remainder would give me a decent profit. Considering I got in around the time the Maria deal was announced it won't compare with a building society deposit but ...)

If there is no bid I think Faroe's share price will rise inexorably from here, so I'm happy to hold. Buy now while supplies last - repeating myself for Rally_no's sponsor.

[jasper2712] 24/8/2018 13:11

All depends if the " white knight " sees the true value of FPM

[thegreatgeraldo] 24/8/2018 11:42

Stating the obvious, but DNO's 28% bought at 125p makes it very hard for any potential "white knight"

[bountyhunter] 24/8/2018 11:41

This situation reminds me of IAE being snapped up at an opportunistic price by Delek prior to Stella coming into production. The BoD caved in there however and I can't see that happenning again here unless a decent offer is put on the table.

[jasper2712] 24/8/2018 11:13

"from people who had seen nothing but dilutive placements for years"

I think you will find that Faroe used the proceeds of any placements to acquire assets. This in itself does not cause dilution but it is looked at by the market as a sign of weakness which results in a drop of the share price
Since these placements Faroe has had various successful finds with their drilling and these are always fully funded . The only downside they have encountered was the Norge platform problems. Once this is fixed Faroe will be producing the 30-40k barrels . So DNO see this and that is why they want it. Whoever sold out at £1.25p were very short sighted