Faroe Petroleum has announced the conditional acquisition of a further 13.9935% interest in the Blane Field in the UK North Sea- from JX Nippon Exploration and Production Limited for a total consideration of USD 5.25M.
The deal consolidates Faroe’s existing Blane position to in aggregate a 44.5% non-operated interest; high quality 42° API oil, tied-back to Ula (Faroe 20%), one of Faroe’s key hubs. Blane is a low operating cost field and the derived 2016 EBITDAX attributable to the Blane Interest was USD 5.4M. Blane had 2016 gross production of approx.2,900 boepd and has potential to grow reserves, extend field life and reduce unit opex
The 13.9935% interest in the Blane Field is derived from a 17.0653% interest in UK Licence P111 covering Block 30/3a (upper). The Acquisition is expected to complete before the year-end.