LONDON (Alliance News) - Faroe Petroleum PLC on Friday said it has raised GBP62.0 million from the large, discounted share placing announced on Thursday to help fund the acquisition of five producing oil and gas fields in the Norwegian North Sea.
The company conducted the placing through an accelerated bookbuild and was originally aiming to raise GBP60.8 million. In the event a total of 88.5 million shares were issued at a price of 70.0 pence each. Stifel Nicolaus Europe, RBC Capital Markets and Pareto Securities acted as joint bookrunners on the placing.
The shares issued represent 24.8% of Faroe's enlarged issued share capital, and the issue price is a 12% discount to the closing price on Thursday and a 13% discount to the closing price on Wednesday, the day before the company said it was to launch the equity raise.
Faroe, on Thursday, had said that it would raise a further EUR5.0 million through an open offer, which, combined with the placing proceeds, will help fund the USD70.2 million acquisition of five producing oil and gas fields in the Norwegian North Sea from DONG E&P Norge AS.
The London-listed company will purchase a 20% working interest in the Ula field, a 45% working interest in the Tambar field, 37.8% interest in Tambar East Unit, 55% interest in Oselvar and 50% interest in the Trym field.
In the event the acquisition does not complete, Faroe said it will use the proceeds of the placing to fund other acquisitions.
The acquisition will add around 19.8 million barrels of oil equivalent to Faroe's asset base and will add 8,000 barrels per day of production in 2016, nearly doubling its total production for the year from current estimates. The company said production in the five months to the end of May averaged 9,500 barrels per day.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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