LONDON (Alliance News) - Faroe Petroleum PLC Thursday announced a share placing to raise roughly GBP45 million, with an option for enlargement.
The oil and gas exploration and development company said the placing will be priced through a bookbuilding process, with Panmure Gordon, Oriel Securities and RBC Capital Markets appointed as joint bookrunners.
Faroe Petroleum's current market capitalisation is GBP272.1 million.
The company said the net proceeds of the placing will be used to build upon the company's development by maintaining its equity positions in identified and planned high impact well in Norway for the next two years or more.
Faroe said it will also use the cash to protect its 25% interest in the highly prospective Pil discovery, along with progressing up to 52 million barrels of oil equivalent net contingent resources towards development and proved and probable reserves to realise their upside value.
"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," Chief Executive Graham Stewart said in a statement
Faroe Petroleum shares closed down 2.3% at 127.00 pence Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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