Faroe Petroleum Share Discussion Threads

[ed 123] 11/12/2018 15:52

Encouraging signs on the order book this afternoon. :-)

Due to a little firmness in the oil price or perhaps the negotiations are making progress?

Whatever, a bid of at least 152p will greet us one day.

[harry rags] 10/12/2018 16:18

DNO think the shares are only worth 152p so presumably that is what they would be looking for ?

[ed 123] 10/12/2018 15:46

Yes, Bountyhunter, the Board did need to state their own interests.

Bid price has ticked down to exactly 152p. Over 700k shares sought at that level. Now I wonder who might have placed those orders? ;-)

Will any volume meet those bid orders? Will any of the institutional holders dump at the muted bid level?

[bountyhunter] 10/12/2018 15:13

Hadn't seen that Ed, an interesting development, in the circumstances maybe they are obligated to publish their current interests.

[thegreatgeraldo] 10/12/2018 14:53

DNO have a big advantage if a competitive bid were to turn up - the 28% they've bought @ 125p.

[tom111] 10/12/2018 14:48

SP will drop to 1.20 to 1.30p if no deal imo,they are getting the shares cheap considering they bought 28% 1.25p

[ed 123] 10/12/2018 14:41

I see that Faroe's directors have rns'd their interests in Faroe shares (and options). DNO had been using estimates, so this provides clarification. Does it mean that negotiations are reaching some sort of conclusion?

If there's no agreement and DNO withdraw for another (minimum) 6 months, where will the share price go? This is what the institutional holders must weigh.

Fwiw, I'm still holding.

[bountyhunter] 10/12/2018 14:36

...and what would there be to stop CNE issuing new shares after a successfull takeover say to raise capital which could easily push FPM's holding to below 25% in any case if DNO decided to not accept a good offer (which would just be wasting their time), then they could increase to >75% and take the company off AIM following a successful offer which just requires >50%

[bountyhunter] 10/12/2018 14:32

Contractual offer
For a contractual offer to succeed, a bidder must secure acceptances in respect of shares in the target company carrying more than 50% of the voting rights in the target company but it may choose a higher threshold.
The advantages of a contractual offer are that effective control (with more than 50% acceptances) can be achieved more quickly and there is greater flexibility to amend terms in a competitive situation.

[fntc] 10/12/2018 14:30

They would be able to block Cairn from taking FPM off AIM (75%), etc. Possibly DNO could block some resolutions that demands 2/3 majority as well

[bountyhunter] 10/12/2018 14:25

not blocking, just remaining as a minority shareholder which wouldn't be in DNO's interests anyway

[fntc] 10/12/2018 14:22

Cairn would care. Why get involved in a company where a competitor has a potentially blocking position?

[bountyhunter] 10/12/2018 14:00

Who cares about that, if CNE made an agreed bid say £2/share gaining >50% then DNO would either have to sell out or tow the line as at the moment.

[fntc] 10/12/2018 12:56

And how much do you think they would need to bid to get DNO to sell their 28,22%? And how likely is that?

[specul82] 10/12/2018 12:02

It would makes sense for cairn energy to buy Faroe Also if cairn are granted the tax back from India it give them 200 million spare cash

[ed 123] 10/12/2018 11:35

I see two more partial sales by institutional investors today at a little above the proposed offer price.

Market conditions and the oil price are playing into DNO's favour. There's no actual offer yet. Negotiations will no doubt be continuing. I wouldn't be surprised to see them get over the line at some face-saving sliver above 152p.

[bountyhunter] 09/12/2018 08:20

On the planned OPEC cuts (from Jan 1st):

[thedudie] 06/12/2018 20:46

Don't think it can be DNO (i think not allowed without increased offer)

Someone (or more than one) has taken a lot of shares - either 1) someone taking a big gamble on DNO raising or 2) a confident holder for the long term or 3) a rival bidder mopping up as many as they can before bidding higher. Or maybe a combination of the first two - very hard to read!

Surprised the asset swap made the kind of NAV increase suggested by Barclays although I guess the commitment to fund Njord was quite costly and a return was still a few years off.
td

[bountyhunter] 06/12/2018 20:36

On the Barclays upgrade mentioned by thedudie earlier...

[bountyhunter] 06/12/2018 20:29

Good point, so who has been mopping up the shares at this level (all buys are above 152p)?



If it's DNO or an agent then don't DNO have to raise the bid to the maximum price they have paid?

[oli12] 06/12/2018 18:59

Huge volume nearly 10m shares traded today, mainly in the PM late on.

[thedudie] 06/12/2018 15:00

Barclays increased target price to £1.85 from £1.60 apparently ...

Someone still appearing to be actively collecting a stake though (not DNO as market still above 1.52).... Some of the II appear to have trimmed a few - I think (unless someone corrects me) only VR have sold completely (only 4million odd). I wonder how many they have now got. Obviously may be more than one company at it!
td

[jasper2712] 05/12/2018 19:03

I don't think Malcy is a favourite of DNO.

[bountyhunter] 05/12/2018 17:33

Malcy today:

Faroe Petroleum

Faroe has announced a Norwegian asset swap with Equinor, it trades out of all interests in the Njord and Hyme redevelopments and the Bauge development assets in return for four production assets on the Norwegian continental shelf being Alve, Marulk, Ringhorne East and Vilge.

The deal adds 7-8/- boe/d to 2019 production and neatly balances the portfolio without impacting reserves. It also reduces capex ‘significantly’ by cutting or eliminating exploration costs on the divested assets and also lowers opex pb ‘materially ‘.

Faroe will see an immediate acceleration of utilisation of its Norwegian tax loss position and give the company a chance to reinvest in its existing portfolio, continue to assess M&A opportunities and potentially return capital to shareholders. With medium term production of 50/- boe/d Faroe have at a stroke revitalised a portfolio that was already in good condition but had attracted vermin seeking to profit from recent oil price weakness. An excellent deal that proves, if any proof were needed that shareholders in Faroe are way better off with current management.