Faroe Petroleum acquires five new fields of assets from Dong Energy in a $70 million signing. The cost to produce energy in these fields was $19 per barrel in 2015. However, the acquisition will increase their reserves by 20 million barrels through the end of the year, all at a rate of 8,000 barrels per day.
To fund the acquisition and the development of Brasse discovery, new investments would need to be set up. They are one of few companies to stay afloat amidst the global energy crisis, yet accordingly “on the hunt” to find a good bargain in assets.
The CEO, Graham Stewart, stated, “The acquisition of these producing fields creates a new strategic hub for Faroe, centered around the Ula platform, in one of our core areas offshore Norway. The acquired assets will have a material impact on production, reserves, cash flow and debt capacity.” He also unveiled the possibility of additional purchases in coming months to rival influential competitors.
Article written by HEI contributor Marcela Abarca.