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To be honest, all things aside the fact that we are targeting around 150 million bbls over the next 6 months is exciting ! Even if we hit a 3rd of those targets then 160p will be a distant memory ! I’d really like to start 2019 around 200p. After that, DNO will have to pay a real premium to take us over!
know what you are saying ...
damned if they do, damned if they don't ...
if it goes to poo then the clamour will be for t/o...
if it goes right then ...!
-- BB --
I noticed that they have omitted the expected well duration from the RNS. This is a standard piece of info that is typically included in every single drilling RNS. Have they given up estimating this based on their abysmal performance on Agar/ plantin?
"Graham Stewart, Chief Executive of Faroe Petroleum commented:"I am pleased to announce the spudding of the Faroe-operated Rungne exploration well, a near field exploration target which provides us with significant upside potential in one of our core areas.
The well is in close proximity to the Faroe-operated Brasse field and existing infrastructure, including the producing Equinor-operated Oseberg oil field.
This is a very active exploration period for Faroe. We have six exploration wells and one appraisal well committed to drill over the coming 12 months, and many more wells lining up for drilling thereafter. The first of these, the Agar/Plantain exploration well in the UK, is currently being drilled, and this will be followed by the Faroe-operated Brasse East well, to be drilled back to back with the Rungne well."These exploration wells are targeting a significant unrisked resource potential net to Faroe of 80-150 mmboe. In addition, the appraisal well on the large Iris-Hades discovery, scheduled for H1 2019, has the potential to prove up very significant resources for the Company."
-- GREAT NEWS --
Note that the "new" partnership for the PL825 drill consists of: Faroe (40% and operator), Equinor Energy AS (30%*), Spirit Energy Norge AS (20%*) and DNO Norge AS (10%*).
DNO being the "stalking horse" ... I wonder how long it will be content for crumbs ... when it can have the whole enchilada?
-- BB --
Did anyone notice the buys/sells yesterday after hours? Crazy...
DNO buying more?
TR-1 expected..
-- BB --
Did anyone notice the buys/sells yesterday after hours? Crazy...
DNO buying more?
TR-1 expected..
-- BB --
Did anyone notice the buys/sells yesterday after hours? Crazy...
DNO buying more?
TR-1 expected..
-- BB --
astute to add another 5000.
By 'eck - the last six words of M-R's statement "and the acquisition of producing assets" looks like a clear message of intent ...
In Norway, the Company will participate in two exploration wells to be spud in 2018. DNO currently holds 21 licenses in the country and plans an additional five exploration wells next year. The Company's growing Norway portfolio is complemented by a 28.22% shareholding in UK-listed Faroe Petroleum plc.
"With $1 billion in financial assets, including more than $600 million in cash and the balance in marketable securities and treasury shares, we are well-positioned to grow our footprint in Kurdistan and Norway with the drill bit and the acquisition of producing assets," said Mossavar-Rahmani (DNO).
oh and btw: Agar and Plantain have estimated combined mid-case resources of 60 MMboe, with an upside case of 98 MMboe (according to one of the two other partners in the drill) ...
Azinor spudded its Plantain exploration well, 9/14a-17, with the Transocean Leader semi-submersible rig on August 24. The well was then re-spudded on September 4 and re-spudded again on September 23 for mechanical reasons.
The well is now expected to reach the Eocene reservoir target in early-mid October. There is an option for a continent sidetrack to appraise the Agar discovery, depending on success with the Plantain prospect.
“Catalyst confirmed that the Plantain exploration well spud at approximately 6:00pm on 24 August 2018 using the Transocean Leader drilling rig. The well is expected to take approximately 28 to 38 days to complete and will be drilled to a depth of 1,845 metres TVDSS. The Plantain well will be followed by a contingent side-track to appraise the discovered Agar field. The total estimated gross cost of well operations is US$15 million. The results will be announced on completion of drilling operations.”
Today is the 38th day!!!
Excellent article Bertie !!
Thanks for posting ! FYI the 6 months period ends on Thursday ! Bid could come any day after that !
It is currently drilling at the Plantain prospect off the UK that could be followed by a sidetrack to appraise the nearby Agar field, while the remaining six wells are lined up off Norway.
First up will be a probe at the operated Rungne prospect set to be spudded shortly near Brasse, followed by a well at the Brasse East prospect, with both targeting additional resources in the vicinity of the North Sea field.
Faroe will also participate in wells due to be drilled next year at three other Norwegian prospects - Pabow, Cassidy and Bergknapp (formerly Yoshi) - as well as an appraisal planned at Iris-Hades in the first half of 2019.
“We feel that the market is failing to value Faroe’s organic growth potential beyond existing discoveries,” Edison stated.
The firm explained the prospects being targeted are all close to existing infrastructure that would make them profitable to develop in the event of discovery, especially given low exploration costs and state-regulated tariffs for subsea tie-backs.
“The bulk of the E&A programme is focused around the three key hub areas of Ula, Brasse and Njord, allowing Faroe to monetise any discoveries through subsea tie-backs to existing infrastructure,” it stated.
Major investor DNO must therefore assess any prospective takeover bid for Faroe against the latter’s potential for substantial value creation.
DNO pulls Faroe board bid
Read more
A takeover offer would become mandatory once a 30% ownership threshold is crossed under UK regulations, although Oslo-listed DNO issued a “no intention to bid” statement when it bought shares in April.
This means it must delay increasing its stake beyond the 30% threshold for six months after the statement was issued on 4 April this year under UK takeover regulations.
The companies recently engaged in a war of words after DNO sought a meeting of Faroe shareholders to gain board seats for its executive chairman Bijan Mossavar-Rahmani and managing director Bjorn Dale.
However, DNO subsequently pulled its proposal after Faroe claimed it was seeking to covertly gain control of the company without paying the required premium to shareholders.
Mossavar-Rahmani would not be drawn on any possible takeover attempt when questioned recently by Upstream’s sister publication DN, simply reiterating DNO’s intent to become a “long-term, strategic investor” in Faroe while adding it had benefited from a 50% upswing in the latter’s share price since its share acquisitions.
Steve Marshall
1 Oct 2018 10:58 GMT Updated 1 Oct 2018 12:34 GMT
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Norway’s DNO faces having to pay a significant premium for additional shares in Faroe Petroleum if it decides to pursue a possible takeover bid for the latter as Faroe’s share price has surged in recent months due to strong financial results and a promising portfolio.
DNO has built up a dominant 28.23% stake in the London-listed independent following a series of share acquisition deals earlier this year with Delek Group and other investors for a price of 125 pence per share, which Faroe’s board then claimed undervalued the company based on its portfolio of field assets and exploration prospects.
Affirming the board’s point, Faroe was trading at 168 pence per share on Monday - and UK research firm Edison Investment still believes the company remains undervalued.
The London-based firm stated in a fresh analysis issued “we believe that the market is not fully valuing the risked value” of an upcoming seven-well exploration and appraisal programme targeting net unrisked prospective resources of 144 million barrels of oil equivalent.
Edison analyst Sanjeev Bahl, who gives an expected valuation of about 185 pence for Faroe shares, also stated the current price does not fully take into account positive cash flow effects from tax depreciation carry-forwards and consolidation in Norway.
Furthermore, the firm highlighted the robust financial position of Faroe that is fully funded for its ongoing investment programme through a rolling Nkr1 billion ($122.8 million) debt facility to finance exploration, as well as an undrawn $250 million facility and further accordion funding of $100 million for appraisal and development work.
Faroe, which also has available cash of £158.6 million ($206.5 million), recently reported a pre-tax profit of £73 million for the first half of this year, reversing a year-earlier loss of £6.1 million, as revenue surged on higher oil and gas prices.
Faroe tightens grip on Brasse - The company had a proven and probable reserve base of 98 million boe at the end of last year, including a net 30.7 million boe from the Brasse field for which a concept selection is due by year-end, with submission of a field development plan to coincide with a final investment decision scheduled for the second half of 2019.
However, this figure could be boosted significantly by the OMV-led Iris-Hades discovery made off Norway earlier this year that currently has a net contingent resource estimate of 42 million boe for Faroe based on its 20% partner stake - making it the company’s biggest find.
Faroe chief executive Graham Stewart said the company estimates the unrisked resource range of the seven committed exploration wells at between 80 million and 150 million boe as it seeks to continue its successful exploration-led organic growth strategy.
With a stated target over the next few years of between 30,000 and 40,000 bopd Faroe could soon be a $ Billion dollar a year turnover company what's the share price worth then still think it has a long way to go by natural growth even without a bid by DNO.
to DNO reaction to the rising share price. Certainly the Broker upgrade has added a certain amount of spice and presented what appears to be a basement price without any premium. As we are drilling at present, it just may be that we will see an offer with a 20% premium shortly, or perhaps DNO are willing to see how the drill bit turns and low ball on a "dry hole". My bets on a bid shortly - but either way we would still be "in play"
I think £2 would now be laughed out of the building ! £2.25-2.5 would be a starting point but even that undervalues the company ! We could reach those price points based on ongoing wells by Q1 2019! Without a takeover !!!
That was a positive broker upgrade..
Now October... Let's see what happens!
-- BB --
Certainly seems to be something afoot judging from the SP increase today.
Well, the second meeting is this week - SO - we should know something - for better/worse by next week ...
Next Monday (1st October) ... the start of real speculation as to offer/no offer/price ...
I reckon a low ball offer of £2 a share ... then hopefully much, much more ...
Would be interesting to see if there are any other potential suitors in the background.
FPM is a decent company with huge prospects.
Here's hoping!
-- BB --
LONDON (Reuters) - Faroe Petroleum (FPM.L) had a "constructive" meeting with DNO (DNO.OL) last week, Faroe's chief executive said on Tuesday, as DNO is widely expected to attempt a hostile takeover of Faroe in early October.
"Our desire is to continue as an independent company," Faroe CEO Graham Stewart told Reuters. Faroe operates in the UK and Norway's North Sea.
Another meeting is planned for next week with the Norwegian oil and gas company.
Slightly north of £2 won’t cut it! £2.5 min or else I’m voting no!
Interesting take, by MGW, on the matter concerning DNO shenanigans
https://www.malcysblog.com/2018/08/oil-price-sdx-energy-echo-energy-far-faroe-petroleum-and-finally/
GLA