iii News26 Oct 2010 12:00
Peter Hitchens, analyst at Panmure Gordon, commented: "Although this would appear a high price, this is a low cost field and will allow the company to utilise its past and future tax losses. On the 2P reserve numbers, we believe that this acquisition is worth approximately £69 million, making this incremental to shareholder value.
"Faroe Petroleum remains one of our favourite smaller E&P companies. We believe that this deal is accretive to shareholder value and offers investors a major boost to cash flow which will allow the group to maintain its momentum."