TIDMFPM
RNS Number : 3919F
Faroe Petroleum PLC
29 October 2018
29 October 2018
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company" or the "Group")
Increase and extension of existing bank credit facilities
Faroe Petroleum, the independent oil and gas company focussing
principally on exploration, appraisal and production opportunities
in Norway and the UK, announces that it has increased and extended
the duration of its Reserve Based Lending bank credit facility
("RBL"), which will provide additional financial capacity to
underpin the Company's growth plans.
The Company's US$250 million RBL, as announced in December 2016,
had a further US$100 million available on an uncommitted
"accordion" basis. All of the banks in the RBL have agreed to
Faroe's exercise of this accordion and so the committed amount has
now increased to US$350 million. In addition, the maturity of the
RBL has been extended by two years to December 2025, thereby
restoring the original seven-year maturity. The amortisation
schedule has been re-profiled accordingly.
The banks in the RBL remain as BNP Paribas (Agent), BMO Capital
Markets, Commonwealth Bank of Australia, Danske Bank, DNB Bank,
ING, Royal Bank of Scotland, SEB, SR-Bank and Wells Fargo.
Rothschild & Co and Pinsent Masons advised the Company, and
Watson Farley Williams advised the banks.
Graham Stewart, Chief Executive of Faroe Petroleum
commented:
"We are pleased with the ongoing strong support from our
relationship banks. The decision to increase and extend their
commitments to Faroe is reflective of their confidence in our
business. The RBL is now fully fit-for-purpose and can support the
Group's strategic aims and continuing growth.
"We are targeting a material increase in shareholder value and
cashflow with our fully funded investment programme across the
portfolio, encompassing exploration, appraisal, development and
production. I remain confident in our ability to deliver our stated
near to medium term production growth target of 35,000 boepd from
the Group's existing asset base."
For further information please contact:
Faroe Petroleum plc Tel: +44 (0) 1224 650
Graham Stewart, CEO 920
Stifel Nicolaus Europe Limited Tel: +44 (0) 20 7710
Callum Stewart / Nicholas Rhodes / Ashton 7600
Clanfield
BMO Capital Markets Tel: +44 (0) 207 236
Tom Rider / Jeremy Low / Tom Hughes 1010
FTI Consulting Tel: +44 (0) 20 3727
Ben Brewerton / Sara Powell / Toby Chidavaenzi 1000
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014, and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Notes to Editors
The Company has, through successive licence applications and
acquisitions, built a substantial and diversified portfolio of
exploration, appraisal, development and production assets in
Norway, the UK and Ireland.
Faroe Petroleum is an experienced licence operator having
operated several exploration wells successfully in Norway and the
UK and is also the production operator of the Schooner and Ketch
gas fields in the UK Southern Gas Basin and the Trym and Oselvar
fields in the Norwegian North Sea. Faroe has extensive experience
working closely with major and independent oil companies both in
Norway and in the UK.
The Company's substantial licence portfolio provides a diverse
spread of risk and reward. Faroe has an active E&A drilling
programme and has interests in a portfolio of producing oil and gas
fields in Norway and the UK, including interests in the Brage,
Ringhorne East, Ula, Tambar and Trym fields in Norway and the Blane
oil field in the UK. In 2016 the Company completed the acquisition
of a package of Norwegian producing assets from DONG Energy
including interests in the Ula, Tambar, Oselvar and Trym fields.
Full year average production for 2018, is estimated to be between
12-14,000 boepd.
In November 2013 and March 2014 Faroe announced the Snilehorn
(Bauge) and Pil (Fenja) discoveries in the Norwegian Sea in close
proximity to the Njord and Hyme fields. In July 2016, the Company
announced the Brasse discovery, close to the Brage field, and the
Njord North Flank (Bauge) discovery, close to the Njord field, both
in Norway. In February 2018, the Company announced the sale of part
of its interest in the Fenja field and in April 2018 announced the
significant Iris and Hades discoveries.
Norway operates a tax efficient system, which incentivises
exploration, through reimbursement of 78% of costs in the
subsequent year. Faroe has built an extensive portfolio of high
potential exploration licences in Norway, which, together with its
established UK North Sea positions provides the majority of
prospects targeted by the Company's sustainable exploration
drilling programme. Faroe has had significant success in
exploration on the Norwegian continental shelf, and the great
majority of the Company's 2P reserves have been generated directly
from Faroe's exploration success.
Faroe Petroleum is quoted on the AIM Market of London Stock
Exchange. The Company is funded from cash reserves and cash flow,
with a net cash position of GBP84 million (unaudited) at 30 June
2018, up from GBP75 million at 31 December 2017 and in addition has
access to a $350 million reserve base lending facility. The Company
has also raised a $100 million senior unsecured bond which is
listed on the Oslo Børs. Faroe has a highly experienced technical
team who are leaders in the areas of seismic and geological
interpretation, reservoir engineering and field development,
focused on creating exceptional value for its shareholders.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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