In this note, we present a valuation of Faroe, inclusive of the Dong Norway assets. Following completion, the acquisition will add 19.8 mmboe 2P Reserves at a cost of about US$3.5/boe per 2P Reserves and we more than double our FY17 production forecast to more than 15.0 mboe/d. The acquired assets provide opportunities for synergy with Faroe’s legacy assets, as well as cash flow and additional borrowing capacity to fund future growth. On our numbers, the acquisition adds
16 Aug 2016
Faroe Post DONG Norway Acquisition
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Faroe Post DONG Norway Acquisition
Faroe Petroleum (FPM:LON) | 0 0 (-0.4%) | Mkt Cap: 371.0m
- Published:
16 Aug 2016 -
Author:
Stephane Foucaud -
Pages:
9
In this note, we present a valuation of Faroe, inclusive of the Dong Norway assets. Following completion, the acquisition will add 19.8 mmboe 2P Reserves at a cost of about US$3.5/boe per 2P Reserves and we more than double our FY17 production forecast to more than 15.0 mboe/d. The acquired assets provide opportunities for synergy with Faroe’s legacy assets, as well as cash flow and additional borrowing capacity to fund future growth. On our numbers, the acquisition adds