Independent explorer Faroe Petroleum has launched a plan to raise £45million to fund exploration.
The company, which has licenses in Norway, the Atlantic Margin and the North Sea, said it would raise the money via a placing with institutional investors. The company launched an “accelerated book build” and the result are expected to be announced Friday.
The firm said the money would be used to “maintain momentum” and ensure it can maintain its 25% stake in the recent Pil find, after discovering “unexpected” reserves thought to contain up to 170million barrels of oil in April. Other partners in the field include VNG Norge, Spike Exploration and Rocksource Exploration.
Funds will also be invested in production and reserves growth in existing fields including Schooner and Ketch, the company said.
“Faroe’s exploration-led, production-backed strategy is delivering exceptional results with seven recent exploration discoveries adding significant resources,” said Graham Stewart, chief executive of Faroe.
“Since 2010, production has increased fourfold and 2P reserves have increased eightfold, putting us firmly on track to become a preeminent Norwegian/UK independent E&P company.
“This placing will reinforce our success by allowing us to increase exploration exposure, safeguard and grow core value and maintain our strong financial position, and will reinforce our competitive strengths when it comes to unlocking the opportunities which will fuel the next growth phase of the business.”