Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, announced today that it had bought a 13.2% stake in Faroe Petroleum Plc from Dana Petroleum for £0.89 per share, or a total of £43 million (some NIS 200 million).
Faroe is an oil and natural gas exploration and production company operating in the North Sea. The shares of Faroe are traded on the AIM stock exchange in London under the FPM symbol. Its share price on December 23 2016 was £0.99 per share, giving a company of £360 million.
According to Faroe's public announcements, its portfolio of gas and oil assets includes about 60 drilling, evaluation, development and production licenses for oil and gas in the North Sea, in Norway and the UK, in some of which it acts as operator. As of January 1, 2016 resources (P2) stood at 61 MMBOE (61 million barrels of oil equivalent), and following completion of a transaction for the acquisition of additional assets in December 2016, proven resources are expected to increase by 20 MMBOE. In the first half of 2016 Faroe produced from the assets it owns 9,000 BOEPD (barrels of oil equivalent per day), and following acquisition of the additional assets mentioned above, the daily production output is expected to grow to between 17,000 to 18,000 BOEPD (barrels of oil equivalent per day).
Delek Group president and CEO Asaf Bartfeld said, "This is another important step in the implementation of Delek Group's strategy to become an international energy company, with significant activity in the fields of oil and gas exploration and production. Acquisition of the Faroe shares is synergistic with and complements the purchase of 20% of the shares of Ithaca, which we did about a year ago. Delek Group's financial strength allows us to identify strategic expansion opportunities, by which we are working to increase the value we provide to Delek Group's investors."
Published by Globes [online], Israel business news - www.globes-online.com - on December 25, 2016
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