Market Reaction: Positive. This transaction is accretive to our valuation. We valued Faroe's 18% interest in Blane at US$52 mm (excluding tax losses). On our numbers the transaction (even excluding Enoch and tax losses benefits) adds US$16.0 mm (£0.03 per share) to our valuation. In addition, these two fields are likely to add about 600 bbl/d net production to Faroe resulting in accelerated use of Faroe's tax losses. We understand both fields have around 2.0 mmboe upside (net to Faroe).
01 Sep 2015
ACQUISITION OF INTEREST IN THE NORTH SEA
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ACQUISITION OF INTEREST IN THE NORTH SEA
Faroe Petroleum (FPM:LON) | 0 0 (-0.4%) | Mkt Cap: 371.0m
- Published:
01 Sep 2015 -
Author:
Stephane Foucaud -
Pages:
2
Market Reaction: Positive. This transaction is accretive to our valuation. We valued Faroe's 18% interest in Blane at US$52 mm (excluding tax losses). On our numbers the transaction (even excluding Enoch and tax losses benefits) adds US$16.0 mm (£0.03 per share) to our valuation. In addition, these two fields are likely to add about 600 bbl/d net production to Faroe resulting in accelerated use of Faroe's tax losses. We understand both fields have around 2.0 mmboe upside (net to Faroe).