Faroe Completes Sale of Glenlivet Stake
Northern Europe-focused junior explorer Faroe Petroleum reported Tuesday that it has completed the sale of its 10-percent interest in the undeveloped Glenlivet gas field, West of Shetland, offshore UK.
Faroe has sold its stake in the field to France's Total for $15.7 million and the effective date of sale has been backdated to January 1, 2014. A portion of the monies from the sale is deferred until the submission of Glenlivet's field development plan and certain production targets being achieved.
Faroe Chief Executive Graham Stewart commented in a company statement:
"I am pleased to announce completion of the sale of our Glenlivet interest to Total – a transaction directly in line with our stated monetization strategy to ensure we fully leverage our exploration to create maximum shareholder value.
"Faroe has a very exciting continuing exploration and appraisal program to look forward to in 2015. Our unique and robust financial position ensures we can participate in another five-well, high-impact campaign in Norway. This will target significant resource potential and is funded from a combination of cash flow from our significant production base and Norwegian state funding."
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