North Sea and Norway-focused Faroe Petroleum is tapping shareholders for £69.8 million to double its programme to 16 wells.
North Sea and Norway-focused Faroe Petroleum is tapping shareholders for £69.8 million to double its programme to 16 wells.
In a welcome departure from prevalent AIM practice, the Aberdeen-based company, which cut losses by two thirds last year to £6.98 million helped by an £18 million gain on disposals and a £4.9 million tax credit, has offered existing shareholders, including major backer Dana Petroleum, first refusal in its discounted 0.6666-for-one £1-a-share rights.
Chief executive Graham Stewart says Faroe, whose 15 per cent-owned Fogelberg project offshore Norway has found gas and condensate estimated at between 105 and 530 billion cubic feet, now hopes to make its exploration efforts ‘self-funding’ — helped by Norwegian tax breaks cutting net costs to ‘22p in the pound’.
The company, which has teamed up with major oil companies and utilities (including Centrica) in its projects, expects drilling to start next month at Maria, another prospect in the same region.
