Faroe Completes Roc Oil Acquisition
Northern Europe-focused junior oil firm Faroe Petroleum announced Friday that it has completed the acquisition of Roc Oil Limited. Roc holds a 12.5-percent interest in the Blane Unit and a 12-percent interest in the Enoch Unit, both of which are located in the UK North Sea.
The acquisition brings Faroe's total non-operated interest in the Blane Unit to 30.5 percent and that of the Enoch Unit to 13.9-percent.
Faroe said that the initial consideration agreed to buy Roc was $17 million, but this has been reduced to $13.7 million on completion after working capital and other corporate adjustments were taken into account.
The company believes that the Blane oilfield has "considerable upside potential" to increase production, grow reserves and extend field life. The Enoch field is currently suspended and is expected to be brought back on stream by the end of this year.
Faroe Chief Executive Graham Stewart commented in a company statement:
"We are very pleased to announce the completion of this acquisition, which gives a further boost to our oil and gas production portfolio.
"Blane is a good quality producing field, well known to the company and which offers upside potential in the form of increasing reserves, production and field life. The transaction is also tax efficient, allowing us to accelerate the use of our tax losses in the UK and is in line with our strategy to grow our production portfolio and to continue the efficient funding of Faroe's committed exploration, appraisal and development program."
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