Dana Acquires Stake in Faroe Petroleum Company
Dana has exercised its existing options to acquire shares in Foroya Kolvetni P/F ("FK"), the Faroese oil and gas exploration company. This has enabled Dana to convert its options in FK into a direct shareholding in Faroe Petroleum Limited ("FP"), the new UK registered holding company of FK. Dana has worked closely with FK since its inception in 1997. In return for Dana providing technical and strategic guidance under a 10 year co-operation agreement, Dana was awarded two low cost options to subscribe for in each case a 10% stake in FK at different formative stages of the company's development.
In 2000, FK was successful in being awarded two exploration licenses in the first Faroes offshore licensing round, in conjunction with operator Agip Denmark B.V. Since then hydrocarbons have been discovered in early drilling in Faroese waters and, following encouraging results from 3D seismic, the Agip/FK joint venture plans to drill its first well on License 002 this summer.
Ahead of drilling, FP has been formed to allow UK investors to participate directly in this high potential basin immediately north west of the UK. FP has successfully raised new private equity capital to finance its 2003 exploration program and in conjunction with this financing Dana has converted its options in FK and hence has now become a shareholder in FP.
Dana also announces that with effect from December 23, 2002, Mr. Graham Stewart has been appointed as the full-time Chief Executive of FP and therefore resigns from his position as Commercial Director with Dana.
Charles M Smith CBE, Chairman of Dana, commented:
"Following an extensive 3D seismic program, a number of attractive prospects have been identified on the Agip/FK licenses and we look forward to the joint venture's first well later this year. I would like to take this opportunity to thank Graham Stewart for his valuable contribution to Dana and to wish him every success at Faroe Petroleum."