LONDON (Alliance News) - DNO ASA said Tuesday that a reserves downgrade at Faroe Petroleum PLC's Oda field by Norwegian Petroleum Directorate raises concerns over Faroe's future expected production profile and should have been reflected in the UK company's independent expert report.
The oil and gas operator, which pursuing a hostile bid for Faroe, said the Norwegian Petroleum Directorate downgraded reserves at Oda field by 30% to 32.7 million barrels of oil equivalent while Faroe's independent expert's asset valuation report published last Wednesday provided a 47.8 million figure for Oda's gross proven and probable reserves and made no reference to the downgrade. Faroe has 15% interest in Oda field.
DNO urged Faroe's board to provide transparent and timely operations updates to shareholders.
Last Friday, DNO further increased its stake in the UK listed oil and gas company to 30.6% by buying further 2.8 million Faroe shares on Thursday at prices ranging between 147 pence and 152p per share.
Taken together with acceptances of its 152p per share takeover offer for Faroe, DNO is interested in 43.8% of Faroe's issued share capital. As of last Wednesday, DNO had received valid acceptances in respect of 13.1% of the issued share capital of Faroe, excluding its own holding.
The offer by DNO is open until January 18, having been extended from December 31.
Shares in Faroe were 0.4% lower at 154.40 pence each on Tuesday morning.
