Faroe Petroleum completes £62m raising to buy Norway assets

Faroe Petroleum said it had completed its £62m raising to buy five Norwegian oil and gas fields.

The independent oil and gas company focusing principally on exploration, appraisal, development and production opportunities in Norway and the UK, said 88.5m shares were placed at 70 each.

The placing shares will represent around 24.7% of Faroe's issued ordinary share capital.

Chief executive Graham Stewart said the cash would allow Faroe to buy “a high value portfolio of producing assets in one of our core strategic areas offshore Norway”.

“As well as providing the funds for the acquisition, the placing proceeds will allow us to progress our recently announced Brasse discovery towards monetisation,” he said.

"With the new funds in hand, coupled with our strong balance sheet and cash generative production portfolio, Faroe is now set on a pathway of becoming an independent E&P company of scale, with material upside potential both in terms of drill-bit leverage as well as the progression of our high quality discovered resource base towards commercialisation."