RE: BETEX OFEX LISTED20 May 2009 08:15
Hi. The £4Mns for this resource looks like well needed cash funds will enable this explorer to enhance operations elsewhere leading to further shareholder value.Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and undeveloped field opportunities in the Atlantic margin, the North Sea and Norway, is pleased to announce the swap with DONG E&P Norge AS of its interest
in the Trym development for a combination of cash and interests in the producing Glitne and Enoch oil fields.
Under the terms of this transaction, Faroe will exchange its 10% interest in the Trym development for up to £4 million (NOK 40m) in cash of which £2 million is payable at completion and a further amount up to £2 million payable upon certain production targets being met by the Trym Field a 9.3% share in the producing Glitne oil field and a 1.86% share in the producing Enoch field, which currently yield, in aggregate, 800 barrels of oil per day (bopd), and DONG Energy will retain the abandonment liability for the Glitne field, capped at £8.5 million (NOK 84m), which corresponds to the net share of the Operator's estimate of the abandonment cost.