Market Reaction: the US$80 mm equity issue will probably be priced below the current share price. If the acquisition does not close, then the new issue will certainly be dilutive. The transaction discounts US$3.5/boe for 2P reserves and US$2.3/boe for 2P reserves + 2C Resources. Including decommissioning costs would double these figures. We also note that the Net Asset Value of the acquisition has been estimated at £50.2 mm, in line with the price paid by Faroe. However in the current e
14 Jul 2016
ACQUISITION OF PRODUCING OIL & GAS ASSETS IN NORWAY AND PLACING
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
ACQUISITION OF PRODUCING OIL & GAS ASSETS IN NORWAY AND PLACING
Faroe Petroleum (FPM:LON) | 0 0 (-0.4%) | Mkt Cap: 371.0m
- Published:
14 Jul 2016 -
Author:
Stephane Foucaud -
Pages:
6
Market Reaction: the US$80 mm equity issue will probably be priced below the current share price. If the acquisition does not close, then the new issue will certainly be dilutive. The transaction discounts US$3.5/boe for 2P reserves and US$2.3/boe for 2P reserves + 2C Resources. Including decommissioning costs would double these figures. We also note that the Net Asset Value of the acquisition has been estimated at £50.2 mm, in line with the price paid by Faroe. However in the current e