Faroe Petroleum said today it had finalised the acquisition of interests in five oil and gas fields in the Norwegian sector of the North Sea.
The Aberdeen company, whose biggest shareholder is Dana Petroleum, has also dramatically lowered the net consideration payable on completion to $26.7million from $70.2million.
Faroe said the sum had dropped due to stronger than expected economic production from the assets in 2016.
It bought the stakes from Danish firm Dong Energy, which recently revealed plans to move away from oil and gas to focus on renewables.
AIM-listed Faroe initially revealed details of the deal in July.
It has bought 20% of Ula, 45% of Tambar, 37.8% of Tambar East Unit, 55% of Oselvar and 50% of Trym.
Faroe chief executive Graham Stewart said: “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; synergies have already been realised with the upcoming development of our Oda field, announced last week, which will be tied back subsea to Ula.
“This transformational deal paves the way for Faroe’s evolution into a full cycle E&P business fit for the modern industry as we continue to grow the value of the company through exploration, development and production with a high quality and diverse portfolio of assets.”
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