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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 completes acquisition of 18% stake in Blane oil fieldMay 17 2011, 8:18am
Faroe Petroleum (LON:FPM) has broadened its portfolio and completed its acquisition of an 18 percent interest in the producing Blane oil field in the North Sea, it said.
The independent oil and gas firm announced it had completed the purchase of the field from Eni (NYSE:E).
CEO of Faroe Graham Stewart said: "The acquisition of a material interest in the high quality producing Blane oil field significantly boosts Faroe's oil and gas revenue generation capacity and is very tax efficient for the company.
"The transaction which adds approximately 1,900 barrels of oil equivalent per day (boepd) to Faroe's production, is in line with our strategy to grow and strengthen the production base towards funding the ongoing exploration programme."
The details of the deal emerged in October last year. The payment of £60 million is funded from cash and bank debt drawn against Faroe’s borrowing base facility.
Faroe has also agreed to farm out a 20 percent interest in the Atlantic Margin Rannva exploration licences at the Faroe and UK border under “promoted terms” as part of the transaction.
The licences cover 2,794 square kilometres around 170km west of the BP (LON:BP) operated Schiehallion oilfield.
Oil production at the Blane field began in 2007 following its discovery in 1989. During September 2010, the Blane field produced at averages rates of 11,964 barrels of oil equivalent per day (boepd) gross and 2,154 boepd net, taking group production to over 3,000 boepd.
Remaining 2P (proven and probable) reserves, as evaluated by Faroe Petroleum's reserves auditors, stood at 3 million barrels of oil equivalent (mmboe) net to Faroe, corresponding into an acquisition cost of US$17.5/boe.
Faroe said that the field’s reserves could expand further as there was potential for more fill-in drilling.
Joint venture partners in the field are operator Talisman Resources with a 43% stake, Nippon Oil (TYO:5001) with a 14% interest and Dana Petroleum (LON:DNX) and Roc Oil (ASX:ROC), which hold 12.5% each.