Faroe Petroleum Share Discussion Threads

[manrobert] 28/12/2018 20:21

i would think they coud easily pick up 10% in the market

[bountyhunter] 28/12/2018 19:00

Yes but once over 30% they have to declare the offer mandatory and if they ever hit 50%+ must declare the offer unconditional.

[manrobert] 28/12/2018 17:05

am I missing something, surley you would expect the institutions shold be piling in a7 142 knoing dno would buy them out at 152,only if dno walked away coukd lose.also are dno able to buy in the market up to 152.

[bountyhunter] 28/12/2018 15:45

"There are many other good E&P indies in the North sea"

...such as? Not interested in those with a load of debt in a rising interest rate environment. I can't think of that "many" with no/low debt and decent production and prospects although there are one or two but they haven't fallen back much with the oil price.

[tom111] 28/12/2018 15:44

The oil price is the be all and end all for the share price at the moment imo all oil shares are taking a battering,ive grabbed my money and run,buy in at a lower price if bid fails

[ed 123] 28/12/2018 15:34

Welcome to ADVFN, ResEng. :-)

Do you have any favourites to buy in the oil sector?

[reseng] 28/12/2018 15:07

Unless you have aparticular affilation to Faroe i.e. No hidden agenda then selling now at 149 or accepting the DNO is an obvious choice for a serious investor. There are many other good E&P indies in the North sea and all are trading at about 30% less than when oil was trading in $70's. Sell high (Faroe) and buy low is usually a good plan. Prosperous New Year to you all.

[scaff55] 28/12/2018 13:56

The only option for now for DNO is to extend the offer they are not going to walk away They seem a bit panicked by the sidetrack at Bressa East my bet it will prove to be the Ace up Faroes sleeve.

[bountyhunter] 27/12/2018 19:30

That unlikely event would be a buying opportunity Tom which I for one would certainly take up given the longer term prospects of remaining independent.

Fixed the link now bomfin.
By a strange coincidence I also used that expression today and it didn't go down at all well lol! But out of the dog house now! 😀

[tom111] 27/12/2018 18:32

Holders taking a big gamble here that there will be a higher bid if the bid lapses the share price will no doubt plunge risk/reward and all that gl

[bomfin] 27/12/2018 17:00

The last f is missing off of the end for fs sake. lol. Just joking bh.

[bomfin] 27/12/2018 16:58

Oh, doesnt link to page. I wonder why.

[bomfin] 27/12/2018 16:57

Thanks bountyhunter. I didnt know that.

[fntc] 27/12/2018 16:55

Close at 149.2p. Obviously some sellers have doubts about the bid.

[bountyhunter] 27/12/2018 16:04

Cheers bomfin, capitalised the H to make clickable...

[bomfin] 27/12/2018 15:35

hxxp://en.pgnig.pl/documents/1910852/1923950/Presentation_PUI_Acquisition_EN.pdf/3018995e-d8d3-4a65-ab90-8d50467c9bbf

[bomfin] 27/12/2018 15:28

On the value of Equinor Deal. Polands oil natural gas company pgnig bought a similar package of assets with a similar production profile 4 years ago. Similar production profile but about 3O million boe instead of 2O million boe. The price was about 18O million pounds. Although similar production profile to Equinor swap I shall reduce the price by 1 3rd for higher reserves. That would make 12O million pounds. My guesstimate is that Njord area assets swapped are in the balance sheet for about 5O million pounds. If you find the pdf of the pgnig deal it is very informative. Capex on development, (different from explo) is depreciated in 6 years from date of spend! Not production start. So depreciated against revenues elsewhere. So the revenues will speed pay out on Njord, Oda, Brasse, Fogelberg, Fenja spend to date starting 1st January. A cash cow coming our way. All relative to retained interests in those projects. So value adding of 7O million pounds imho.

[bountyhunter] 27/12/2018 14:46

....
....
...The reality is that the DNO Offer represents a premium of only:
-- 1% to the undisturbed three month volume weighted average share price (VWAP)(1)
-- 21% to the closing share price prior to the Offer announcement - about half the average premium paid on all UK takeovers over the last 10 years(2)

The Board notes DNO's statement that if DNO does not receive sufficient acceptances by 1 pm London time on 2 January 2019 for its Offer to be unconditional, DNO has the choice either to lapse the Offer or to extend it. This choice is DNO's alone, as was the timing for the announcement of its unsolicited Offer.

For the sake of clarity, the Board makes the following observations in relation to the Offer timetable, as established by the UK Takeover Code (the "Code"):

-- DNO has until 10 February 2019 to achieve sufficient acceptances for its offer to become unconditional

-- The Board of Faroe has until 20 January 2019 to announce material new information in relation to the Offer

-- DNO has until 27 January 2019 to improve or otherwise change its Offer, should it wish to do so

-- If the Offer at any time becomes or is declared unconditional, DNO must keep it open for acceptance for at least another 14 days

The Board of Faroe has engaged Gaffney, Cline & Associates ("GCA") to prepare an independent valuation of Faroe's assets in accordance with Rule 29 of the Code. For Code purposes, GCA's independent valuation report needs be a "current" valuation of the assets and therefore must reflect the latest available information on Faroe's assets as at the report date which will therefore include the latest Brasse East drilling results subject to completion of drilling operations. As noted above, under the Code timetable Faroe has until 20 January 2019 to announce material new information in relation to the Offer and the Board intends to publish GCA's independent valuation report ahead of this date.

The Board notes DNO's focus on recent uncertain oil and equities markets as a reason to justify its Offer. Faroe remains fully funded to pursue its near to medium term production growth target of 35,000boepd and its largest ever drilling campaign, while the additional financial flexibility created by the recent Equinor asset swap - adding GBP96 million(3) of incremental cash flow in the next two years - would allow Faroe to exploit suitable opportunities that might arise from any short term weakness in the oil price.

The Board reaffirms its previous statements that the Offer is opportunistic and substantially undervalues Faroe, and encourages all shareholders to take no action.

[bomfin] 27/12/2018 14:32

So, The suggestion is it is not positive. Hmmm, Sidetrack could be technical. As for value Neutral deal. It is accelerated cash flow, similar reserves. Birds in the hand type value, difficult to quantify as balance sheet will show balance neutral but balance sheet will also show loads more cash within assets and loads less debt in assets and as investors we know which is better.

[bountyhunter] 27/12/2018 14:00

but not the sidetrack, and from today's RNS:

"We remain active over the coming months, with the Brasse East well currently drilling"

[fntc] 27/12/2018 13:46

"FPM are not obliged to put out a RNS if the well has not been completed. DNO know this so what is their problem ?"
NPD says it (main well, 3 S) was completed on December 16th.

[jasper2712] 27/12/2018 13:44

FPM are not obliged to put out a RNS if the well has not been completed. DNO know this so what is their problem ? It would be in Faroes interest to get the sidetrack result out asap if it is positive as DNO are inferring otherwise to try and bolster their arguments.
Scare tactics in my opinion.

[fntc] 27/12/2018 13:36

hxxp://factpages.npd.no/ReportServer?/FactPages/PageView/licence&rs:Command=Render&rc:Toolbar=false&rc:Parameters=f&NpdId=24214205&IpAddress=88.91.63.214&CultureCode=en

See the list of "Wellbores - exploration, drilled in the production licence"

31/7-3 S Entered date: 20.11.2018 Completed date: 16.12.2018 Purpose: APPRAISAL Content: [None entered, the others say if they have oil or gas]

And the sidetrack 31/7-3 A was started the day after, according to the NPD.

Looks like that is what DNO is referring to in their release today.

[hashertu] 27/12/2018 12:57

Has anyone seen the NPD information about Brasse East.
All I can find is 31/7-3A has an entered (started?) date of 17/12.
Is this the side track?