Faroe Petroleum Share Discussion Threads

[reseng] 03/1/2019 19:29

UggestEd , tks i will sit back and w

[bountyhunter] 03/1/2019 18:35

I wonder how many new Advfn IDs (and probably other BB IDs as well) DNO and their advisors have created here recently!? Yesterday it was Arthur, today ResEng, who will it be to tomorrow?

[ed 123] 03/1/2019 18:17

I read it as a sign of DNO's desperation that fellow travellers of DNO have popped up here.

ResEng. Genuine question: If DNO's offer is so good, why don't you just sit back and let events unfold. Surely you have no need to post supportively of DNO?

[ed 123] 03/1/2019 18:13

No problem, ResEng. :-)

If you genuinely want figures, you could go to GCA's report. I guess, though, that you want to pursue your agenda?

[hashertu] 03/1/2019 18:06

ResEng. GCA report.

2 Economic Assessment

2.1 Valuation Methodology

2.2.4 Oil and Gas Pricing Scenario

GCA’s Brent Crude oil price scenario for 4Q 2018, shown in Table 3, has been used as the reference oil price. This scenario follows the ICE Brent Futures strip in the short term, thereafter following a long term price estimated based on a combination of numerous industry sources and sentiment.

etc

[reseng] 03/1/2019 18:01

Ed , sorry mistaked my question which decribed another way ;
Does anyone have a range of $ per barrel which have been used recently to $ valuethe 2 P reserves . For example the figures used in Equinor swap

[reseng] 03/1/2019 17:56

Harry R , thanks your reply and just to reirerate : i did not say the report results are wrong but challenge the «Assumption». Estimates of assets and value based on the reported 2P is often an extemely complicate calc using many factors looking into future.

[ed 123] 03/1/2019 17:54

Yes, Faroe's assets are worth 186 - 225p per share. Add value of Faroe's techical teams and something for DNO's desperate need to diverisfy somewhere safe. Maybe 250p total?

[reseng] 03/1/2019 17:50

Just stating my opinion, which I believe is balanced.
Does anyone have a pricing range based on 2P figues ??

[harry rags] 03/1/2019 17:45

ResEngDNO called for the report and Faroe provided the report by going to independent third party and yes they would have had to pay for it. I have no reason to doubt the report unless you have some evidence of misreporting?

[bountyhunter] 03/1/2019 17:42

Another new poster - 4 posts ever, all here of course, joined only last week;
5 different visitors from Norway here today, that's more than usual

[reseng] 03/1/2019 17:38

Agree with Oto that the end game may take a bit long and this is not good for shareholders.
I have read GCA report as posted by Faroe and smiled at their use of word «Independant» consultant. It may describe their firms status but I suggest that as they are paid by Faroe then ‘he who pays the piper ... ‘

I am not questioning GCA results but their assumption to get such result , e.g. Could not see any oil price mention. Also dont forget that 2P reserve is that amount which has a 50% chance of reaching/exceeding.
It is difficult to get a grip of $ bbl to create a valuation for oil in the ground. I have heared 3 to $6 per bbl if you are buying such assets. Any views on this ??
The GVA report and valuation is based on a different assets base to that going forward so it is not much point in digging deeper into the» assumptions» but I must say it is surprising that many here take the report as gospel

[bountyhunter] 03/1/2019 16:54

No thanks. I'd rather see the bid fail and double up for the future with the existing management team. DNO are not going to walk away from this though imo so I don't expect to get that opportunity. There is too much risk for them of a higher oil price in a year's time.

[ed 123] 03/1/2019 16:50

About 3% of Faroe's stock changed hands today, most of it at or a whisker above DNO's 152p offer. DNO is having its arm twisted up its back by arbitrageurs. The latter will want a turn on their gamble but will DNO do it?

I think they will. 160p anyone?

[harry rags] 03/1/2019 16:12

Perhaps DNO will come back with a revised offer now that the share price and the oil price have risen ( at least twice more IMHO)If they want control which they obviously do

[hashertu] 03/1/2019 16:07

Brightsphere holding RNS.
Section 3d.
Tender shares.
I assume this 1.3% holding is part of the 13% who have chosen to accept the offer.
First time I have seen this itemised.

[bountyhunter] 03/1/2019 11:47

Absolutely Red.

Malcy's fairly laid back on today's developments ;-)

Faroe Petroleum
"A couple of announcements re Faroe since yesterday’s blog. Last night DNO had a go at smashing into the FPM team and its record, something that it would appear unwise to do as it would surely itself like such a sector leading position. Indeed the rant was of such significance I suspect that some shareholders are wondering why DNO wants to buy a company that is so bad….

The answer came today when it was announced that at the first closing date DNO had received just 13.1% of acceptances for its bid and has resorted to buying more shares in the market to take it mandatory. With a very low ball bid presented whilst the oil price has had a fall, it is clear that DNO are using its cash which carries at least temporary currency to some shareholders, as a tempter, like sirens calling sailors onto the rocks….Wise investors will not be tempted by such creatures…."

[redartbmud] 03/1/2019 11:35

bountyhunter

Agreed.
Both they, and the advisors would have to agree to/sanction the purchase. It is market price sensitive information.
They could hardly slip in an RNS that goes 'By the way, two days ago, we purchased 100,000 shares in Fpm, through our advisors, at 153.5p'. Just thought we ought to let you know'.

[bountyhunter] 03/1/2019 11:15

header Brent chart rolled to front month contract

[thedudie] 03/1/2019 11:10

Jasper I thought that was funny too -- their indicative bid was 25th Nov, actual bid 12th December - 2nd Jan.
How long do DNO think people are on holiday for?

[bountyhunter] 03/1/2019 11:07

hashertu - immediately is my understanding, as not much point being compelled to immediately raise the offer if they don't have to tell anyone for a while

[jasper2712] 03/1/2019 10:53

Excellent news today. If they only managed to get 13.1% then they will not get the 14.5% needed. The major shareholders are the ones who are holding the 50million+ shares they need and I cannot see them bailing out now.
The true value was given by the board as a minimum of 215p and this did not reflect the future potential of the company.

It was this part of their announcement that brought a wry smile to my dish

"DNO has been faced with a difficult decision as to whether to lapse or to extend its Offer. After careful consideration, including factoring in the likely challenge facing some shareholders to act during the Christmas and New Year holiday, DNO has decided to extend the Offer for a further 14 days."


Great start to the New Year and well done to the Faroe stalwarts.

[hashertu] 03/1/2019 10:48

redartbmud. Agreed, but when do they have tell the market?

[redartbmud] 03/1/2019 10:44

As I understand it, a purchase above the offer price immediately alters the terms and conditions of the bid. They have to offer to buy outstanding share at the highest price paid.