Faroe Petroleum Raises 25 Million in Placing
Faroe Petroleum has conditionally raised £25.0 million (approximately £23.5 million after expenses) through a placing with institutional and other investors of 18,382,353 new Ordinary Shares in the Company at 136 pence per Ordinary Share. The placing is subject to shareholder approval at an extraordinary general meeting to be held on May 8, 2006.
- Placing of 18,382,353 Ordinary Shares at 136 pence per share, raising £25.0m before expenses
- Company fully funded in advance of planned drilling program forecast to cover eight wells over the next 18 to 24 months, the first two of which will be in 2006:
- North Sea: North Halibut well currently scheduled to commence drilling in mid May
- Faroes: Brugdan well on License 006 currently scheduled to commence drilling in July
- Net placing funds will also support the Company's expansion into Norway, as well as the continuing work to mature the license interests in the existing portfolio and in acquiring and applying for new E&P opportunities
Williams de Broe, Nominated Adviser and Joint Broker to the Company, and Panmure Gordon, now appointed as Joint Broker to the Company, have together conditionally placed 18,382,353 new Ordinary Shares with existing shareholders and other financial institutions. The Placing Price represents a discount of approximately 4.9 per cent. to the closing middle market price of 143 pence per share on 12 April 2006, the last business day prior to this announcement.
Graham Stewart, Chief Executive of Faroe Petroleum said, "We are delighted with
the outcome of this placing and the significant levels of interest shown by the
investment community, demonstrating the market's confidence in the Company and
its strategy. Following the EGM, Faroe Petroleum will be well positioned to
undertake the next stage in its business strategy, which includes the drilling
program, the continued maturing of the Company's license portfolio, and
expansion into Norway, where the Company has recently become pre-qualified."
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