Offshore oil and gas exploration company, Faroe Petroleum, has announced the completion of the acquisition of rival firm Roc Oil UK.
The deal was put together and first announced back in September. Since then the Faroe Petroleum and the Roc Oil UK, a subsidiary of Australian firm Roc Oil, have been finalising the deal, to today when the deal has gone through.
Blane & Enoch Offshore Fields
The main point of acquisition form Faroe’s point of view was to gain Roc Oil’s North Sea assets, the Blane and Enoch fields.
In the Blane field, the deal sees Faroe add a stake of 12.5% to its pre-accusation holding of 18%, binging its new stake to 30.5%,
In the Enoch filed, the deal sees Faroe add a stake of 12%, to its pre-accusation holding of 1.86%, binging its new stake to 13.86%,
Talisman hold the majority stake and act as operator of both fields.
The final cost of the acquisition, came to US$13.7 million, a lower figure than the US$17 million figure quoted back in September. The reason given was ‘corporate adjustments’.
Both assets are located in the UK sector of the North Sea. The Enoch field has been shut down since February 2012, after issues with a christmas tree. However, a new Christmas tree has since been installed back in 2013, and Faroe claim the field is likely to start production by the end of 2015.
Faroe Petroleum chief executive, Graham Stewart, said: “We are very pleased to announce the completion of this acquisition, which gives a further boost to our oil and gas production portfolio.
“Blane is a good quality producing field, well known to the Company and which offers upside potential in the form of increasing reserves, production and field life.
“The transaction is also tax efficient, allowing us to accelerate the use of our tax losses in the UK and is in line with our strategy to grow our production portfolio and to continue the efficient funding of Faroe’s committed exploration, appraisal and development programme.”