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Faroe Petroleum has a substantial portfolio of exploration, appraisal and development assets across the Atlantic Margin, the UK and Norwegian North Sea and the Norwegian Sea.
Faroe Petroleum joint venture partners include BP, Chevron, ConocoPhillips, DONG, DSM, Eni, E.ON Ruhrgas, GDF, Oilexco, OMV, RWE, Shell and Statoil all of which...
Faroe Petroleum raises £62.2m, enters partnership with Scottish & Southern EnergyNovember 19 2010, 10:29am
Faroe Petroleum (LON:FPM) has raised £62.2 million in a share placing to expand its exploration programme and look into acquisitions.
The company also announced a strategic agreement with FTSE 100 energy company Scottish & Southern Energy (LON:SSE), which now holds an interest in Faroe.
The shares were placed at a price of 165 pence with Panmure Gordon and Oriel Securities acting as joint bookrunners. The placing price represents a discount of 7.7% to yesterday’s closing price of 178.75 pence.
The proceeds will be used to fund appraisal and pre-development of recent discoveries, increasing exposure to exploration upside by taking larger equity stakes and committing to new wells and acquisition of appraisal and production assets.
Scottish & Southern Energy has subscribed to 5.1% of the enlarged share capital in the placing.
Faroe said that the two companies will now develop wider co-operation.
“We are delighted to have received such strong support from our existing and new shareholders for this placing, which will allow us to fund the new opportunities that we have generated.
“Alongside today's placing we have entered into a significant strategic agreement with SSE through which we will leverage our respective resources to mutual benefit in growing our respective upstream portfolios,” said chief executive of Faroe Petroleum Graham Stewart.
The executive directors of Faroe have also subscribed for placing shares at the placing price.