Faroe Petroleum plc, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, is pleased to confirm the completion of the previously announced sale of its 17.5% working interest in the Fenja development located in PL586 in the Norwegian Sea. Faroe retains a 7.5% working interest.
The cash consideration received by Faroe for the sale of the Fenja interest is $68M, reflecting the consideration amount of $54.5M together with working capital adjustments notably capital expenditure incurred since the effective date of 1 January 2018.
Graham Stewart, CEO, said: âI am pleased to announce the completion of the sale of a partial interest in our Fenja project. This transaction validates Faroeâs business model of generating tangible and attractive shareholder returns from our exploration portfolio. As well as producing an immediate cash return, the transaction reduces Faroeâs net capital expenditure on the Fenja development to approximately $96M. This in turn gives us additional liquidity for our other high quality projects such as the Brasse development and ensures we are fully funded to reach our organic production growth target of 35,000 boepd.â?