Faroe Petroleum Share Discussion Threads

[thedudie] 07/1/2019 10:28

They (or any linked company) cant buy at over 1.52 without raising the bid price. Trying to buy millions of shares in the market would push the price up anyway.
Their bid is failing .... at the moment .... and requires a significant raise in the price.

[jasper2712] 07/1/2019 10:22

Am I right in saying that DNO cannot buy shares in the market if they are above the 152p offer? As it stands just now ,if this is the case, then all does not bode well for their takeover being a success. Is there anything to stop them getting a friendly third party to buy the shares in the market and then buying them back from them. As is always the case when regulations are set down, there is always a way of circumventing the rules if they have been written without clarity.

[thedudie] 07/1/2019 08:30

Thanks Roger
I think Oda was due to deliver 4500boepd. Not sure whether that number has changed at all but a significant uplift.

Edit - from the last annual report .....First oil is scheduled for mid-2019, with gross plateau production
expected to be 30,000 boepd (4,500 boepd net to Faroe).

TD

[bomfin] 06/1/2019 18:16

As for likelihood of commerciality. 25% supposedly natural gas liquids. Not far from Asgard and Fogelberg for that matter. My valuation is at 1OO million pounds net to Faroe at the 2c figure.

[bomfin] 06/1/2019 18:11

Thanks arthurs. I interpreted figures as being very low end with their 1c figure gross at 12 million barrels which must be net!. Its the gaffney cline dowload under DNO offer on website if anyone wants to have a look. Guess you have all studied it already. internet woes in the Amazon means Im catching up again!

[arthurs1] 06/1/2019 16:56

The report has Hades / Iris at more like 62 mmboe gross 1C. And that includes any upgrades prior to September. 2C is closer to 200 mmboe. The big delta shows that appraisal is still needed to reduce volume uncertainty. That uncertainty will weigh on the valuation.

[bomfin] 06/1/2019 16:10

Apologies if this already posted. There are a whole heap of posts and little time to catch up. Gaffney Clyne dont seem to have much in for IrisHades, It is a huge document so I could have missed something but I dont think they upgraded when OMV upgraded reserves in August. I thought it was 42 million barrels 2c net to FPM with about one third of that 1c making the field a 9O certainty of being 6O million barrels minimum, 15 million barrels minimum net imho with upside at 6O million barrels net. Now, because of its size it must be pretty close to moving from contingent to proved. imho dyor

[redartbmud] 06/1/2019 13:29

jasper

I totally agree. The best way to understand them is via a flow chart.
The basic rules are very simple. It is the 'what happens when' scenarios that confuse the issue. They have their own set of mini rules that apply, and they need to be understood via the flow chart.
Best way to try to explain it.

[jasper2712] 06/1/2019 13:10

If they would make these rules with a bit more clarity it would make them easier for everyone to follow. Why do they do it? Possibly to cause confusion. A bit like our tax laws which leave them open to manipulation.

[redartbmud] 06/1/2019 09:29

Hallelujah

The penny has finally dropped.
It took you a long time, but you finally got there.

[oto1] 05/1/2019 22:41

I have now read the "light" version of the takeover code.

It seems like condition can not be set lower than 50%, which means that DNO will have 2 options:
- Get 50%
- Lapse.

Which for sure makes this more interesting the next 2 weeks.

[scaff55] 05/1/2019 21:22

Blackrock
(a) Purchases and sales

Class of relevant security Purchase/sale Number of securities Price per unit
10p ordinary Purchase 2,625 GBP 1.5320
-------------- --------------------- ---------------
10p ordinary Sale 1,146,461 GBP 1.5200
-------------- --------------------- ---------------
10p ordinary Sale 886,147 GBP 1.5204
-------------- --------------------- ---------------
10p ordinary Sale 12,074 GBP 1.5260
-------------- --------------------- ---------------
10p ordinary Sale 41,311 GBP 1.5300
-------------- --------------------- ---------------
10p ordinary Sale 345,130 GBP 1.5320

[oto1] 05/1/2019 20:47

And for clarity:

Shares Blackrock sells above 152 are not sold to DNO.
Who is the buyer(s), we don't know.

It could be Fsroe friendly, or it could be DNO friendly.

[oto1] 05/1/2019 20:44

Jasper

Just see rn on Faroe homepage.

Blackrock sold +2 mill shares on Thursday.
Some of them under or at 152.

And they are listed with 32 mill shares at homepage, that was in October I think.
Now they are down to 25 mill.

What they sold Yesterday we will know on Monday.

[jasper2712] 05/1/2019 20:17

How do you know that Blackrock are selling to DNO? They could have offloaded these shares for 170p 6 weeks ago , or took up the 125p offered by DNO before Jan 2nd. Why have they waited till now ?
DNO do not have a chance of stealing this company from Faroe. If they want full control then they will have to pay the full rate

[fntc] 05/1/2019 19:10

DNO controlled 43.8% of the shares as of January 3rd, meaning they only need 6.2% more to go over 50% in the bidding round. BlackRock alone has 6.8% of the company, and they started selling over two million at around 152 this week. So it is just a matter of time and price before DNO get the last 6.2% they need. They could raise the price by a few pence to lure some more sellers, or they could buy more shares in the market, maybe even at prices slightly above 152p and then raise the bid to the highest price they paid. Time will tell. The likelihood of DNO giving up, and remaining the by far largest shareholder with 30.6% of the company but with no board seats, and no say in how the company is run, is minuscule.

[redartbmud] 05/1/2019 18:14

Braindead.

[oto1] 05/1/2019 18:11

Rsdartbmud

Well, I've been investing for 20+ years without professional guidance, and I'm doing quite well.
You still give me nothing but the obvious, and not even that.

If DNO can stick with lets say 45%, then they will have the majority st an Agm if less than 90% votes are present. And who says they will settle for 2 board positions then?
This is a hostile take over due to Faroe board not listening st all to their largest shareholder, so don't be surprised if all 10 are being replaced.
And board will be reduced in numbers to 5-6.

That will probably not happen immidiately, as the tone will change dramatically in a months time.

You obvoiously don't understand the concept, or You just don't want to realize the fact that in order to get control 50% is never needed.

When DNO starts replacing board members, the new members will vote in favour of a merger with DNO Norway, adding more than 20 licences to Faroe portfolio.

And eventuslly DNO will get +50%, and closing up to 75% all instos will sell as DNO's plan is to delist the company.

They may get +50% already on Jan 18, as Blackrock seems to be satisfied with 152, and will most likely sell their remaining shares to DNO after they have offloaded what they can above.

The only remaining question is the one I've asked several times.
If DNO can settle with less than 50% they will, and no increase in offer price is to be expected.
If they need +50%, then there may be a small increase, mainly depending on Blackrock.

As Blackrock is selling, I would not keep my hopes too high though.
If they wanted a higher price they would have bought shares, putting the pressure on.
But if DNO can settle for less than 50%, they probably realize that buing more shares above 152 is lost money.

[hermana3] 05/1/2019 17:47

DNO bid at current level has bob hope n no hope!

[redartbmud] 05/1/2019 16:36

oto

I am a qualified accountant by profession and also worked in stockbroking.
Anything less than 50% + 1 share of the total shares in issue means that the bid fails.
They may have enough shares to force the company to give them a couple of seats on the board, that is all.
If the bid lapses the shares pledged to DNO, as part of the offer, will be returned to the shareholders and life goes on.
The shares that they own, because they bought them in the market, at 152p, or less, remain their property.

If they get 2 seats on the board, to add to the 8 existing directors, it makes no difference. They will be outvoted 8 - 2 on any resolution put to the board!!

I cannot explain it any more clearly.
If you cannot understand what I have said, then I respectfully suggest that you should not be investing in shares without professional guidance.

[scaff55] 05/1/2019 15:02

So the vital question still remains open:
Will the bid lapse if DNO does not reach 50% / YES.

[oto1] 05/1/2019 13:22

Bid fail?

So You're saying that DNO can not settle for the 43-44% they already have?

Well, I think You're only guessing, and I'm not interested in guesses.

At least You may now have understood why 44% can be enough to have control.

So the vital question still remains open:
Will the bid lapse if DNO does not reach 50%, or can they declare the bid unconditional and settle for less?

[redartbmud] 05/1/2019 09:50

Correction.
In the case of a bid you are agreeing to sell your shares, you are not voting. Unless the bidder gets 50% plus 1 share of all shares in issue, the bid fail.