Faroe Petroleum Share Discussion Threads

[arthurs1] 02/1/2019 19:25

The valuation in the full report shows the 2P reserves contribution to the overall value. The cover letter - with an updated 2019 oil price - doesn't show this. It is likely the producing assets are materially more impacted as they have 2019 and 2020 revenue. I don't see any updated 2P value, and this is the most important number.

[bountyhunter] 02/1/2019 19:10

Exactly Harry.

[harry rags] 02/1/2019 18:56

Not a word about how many acceptances they have received, obviously not enough. They are also painting such a bad picture of Faroe you wonder why they want to buy them.

[fntc] 02/1/2019 18:52

Based on the content and tone of the DNO release I would guess they do not have all the shares they want, so far, so I expect an extension tomorrow morning, most likely.

[fntc] 02/1/2019 18:51

"...and as already pointed out the oil price has been adjusted to reflect the current price "
The point from DNO's side is that the GCA report (with latest update) is based on a Brent price average in 2021 of $70, while the market today has a price of $57 for Brent 2021 futures.

[bountyhunter] 02/1/2019 18:47

Three thread visitors from Norway and two from Denmark today.

[bountyhunter] 02/1/2019 18:40

maybe even one and the same person?

Of course the Equinor swap was not included as not yet completed and as already pointed out the oil price has been adjusted to reflect the current price (but not to include today's rise). DNO seem to be getting so desperate that they have become misleading to the extent of overlooking the obvious.

[fntc] 02/1/2019 18:38

DNO ASA Executive Chairman Bijan Mossavar-Rahmani issued the following statement:

"From today's announcement it is plain that Faroes's defence is exhausted. Their valuation report assesses an historic view of the company using an inflated commodity price. The Equinor swap, wrought on the company without consulting shareholders, is not reflected, nor has consideration been given to a range of capital and operating costs. The CPR accompanies the third exploration failure in recent weeks from a company whose chairman vaunted its exploration success in Faroe's defence document. The market's verdict is evident today in the share price. With public companies, it is the shareholders who ultimately decide."

[bountyhunter] 02/1/2019 18:37

arthurs1 first ever post, completely innacurate and misleading

I was about to post the same as hishertu which was clear to anyone who had read the RNS

[gersemi] 02/1/2019 18:19

DNO news out

[arthurs1] 02/1/2019 17:03

The 2019 Brent price is looking heroic in the GCA report at >$80/bbl. Unlikely that anyone else will go with that assumption. Hedging via futures is more like $55/bbl. Pity the numbers are so far out.

[fntc] 02/1/2019 16:57

Meanwhile, the market values the shares at 146p, below the current offer.

[harry rags] 02/1/2019 16:38

Ed123I think they are considering their next move which could be to increase the offer to the bottom end of the valuation We will wait and seeHarry

[bountyhunter] 02/1/2019 15:42

Malcy today:

"Faroe Petroleum
News from Faroe today on three fronts, on the drilling front the Brasse East well, targeting a separate structure was found to be water wet whilst the sidetrack well, chasing the northern part of the Brasse field encountered 40m of gross hydrocarbon bearing reservoir, in line with pre-drill expectations.

The company also responded to the DNO request for an independent current valuation report, as at end 3Q 2018 which show 2P reserves of 102m barrels with a NPV, at current oil prices, of between $879m-1.07bn. This equates to 186-225p per share, significantly above the DNO bid of 152p but doesnt include anything from the Equinor swap deal which hasn’t closed yet and also expected to add significantly. Shareholders should think very carefully before giving away such a large amount of value for what seems like a paltry cash sum. Remaining with a high value holding and what is one of the best management teams in the industry should far outweigh the current thirty pieces of silver on offer…"

[ed 123] 02/1/2019 15:12

DNO have had two hours to count the number of acceptances. They surely have the figures by now?

Maybe we get the rns after close today?

The stock is trading quietly for now. (143.7p down 3.3p).

[harry rags] 02/1/2019 13:56

DNO bought about 28% at 125p and the other 2% nearer 152p so they already have 30% on the cheap and they could pay nearer 200p for the remaining 70% and still have bought Faroe cheaply. I am expect another offer nearer the bottom end of the valuation which again maybe rejected before a final bid to secure the company. I just don't see DNO walking away. As always I stand to be correctedFaroe have still a couple of weeks to come up with any new information about the company and I would expect another deal to be struck before that happens All IMHOHarry

[thedudie] 02/1/2019 12:34

hashertu -- thankyou. No matter how many times I read this stuff sometimes I just can't find the right info!
td

[hashertu] 02/1/2019 12:27

Thedudie. I believe the announcement has to be made tomorrow, based on what I have read.

"Announcement of acceptance levels and (if appropriate) extension of the offer

First business day after first closing date (and all subsequent closing dates) (by 8.00 a.m.)"

[thedudie] 02/1/2019 12:18

BH - yes acceptances. 1pm today seems the 1st limit- I think DNO must have to reveal all at some point soon after.

[bountyhunter] 02/1/2019 12:06

Feel exactly the same HH, if it falls through I'm happy to double up and hold until 35k boepd when Brasse comes on line, if not I expect a realistic offer.

[hopeful holder] 02/1/2019 12:02

I'm in mixed minds really. I don't want the fpm board to be selling out early and would.like them to finish what they have started. An offer at the top end would meet my target price.I doubt, however, that DNO would offer that level of offer.

[bountyhunter] 02/1/2019 11:53

I presume you mean acceptances as their holding is still less than 30%. Don't know on that either.

[thedudie] 02/1/2019 11:48

In both Ophir (started buys 3rd Oct) and Faroe ....
Wondering how this will all be decided.

Do DNO have to state their percentage tomorrow / today 1.00pm / late today / next week ?
No idea on timings ...
td

[bountyhunter] 02/1/2019 11:32

12 mths is what I suspected from memory.
That scenario would suit me Ed.

Serica has been a dream, if only they were all like that! Amer is my next hope for a multi-bagger but obviously higher risk than SQZ or FPM as not NS assets.

[ed 123] 02/1/2019 10:49

12 months to wait before allowed to bid again.

I've had a lucky run recently, with Serica, Faroe and now Ophir. Testing my judgement ...... I think DNO will get around 42% including their 30%, the extra 14 days will give them say another 2%, taking them to 44% held and offered. They could reject and return the offered shares but I think they'll keep them and cough up the 152p per share. Then they'll be an irritant for 12 months, till they're allowed to rebid.