Faroe Petroleum to List on London's AIM
U.K. independent, Faroe Petroleum, is going to list its shares on London's Alternative Investment Market. Shares are expected to start trading on June 26th. The company will place approximately 14.5 million shares at 103.5 pence each to raise GBP15 million.
Faroe Petroleum plans to focus on exploration and development in two North Atlantic oil and gas prospects. The company's main exploration area will be the North Atlantic near the Faroe and Shetland Islands. The company has a 25% interest in two deepwater licenses located off the Faore Islands which are operated by ENI. Potential reserves in the Faroe Islands region could be well in excess of 6 billion barrels.
Proceeds from the initial public offering will be used for the $2 million purchase from ENI of a 17.5% stake in the Suilven field and a 20% stake in the Laggan field, both of which lie west of the Shetland Islands a few miles from the border of the Faroe Islands. Suilven is operated by BP, Laggan is operated by Total. The purchase should be completed by the end of July.
The Faroes are a cluster of 18 islands, lying about 250 kilometers northwest of Scotland. The territory is a protectorate of Denmark.
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