tamdee
03 Oct 2016
Butch.. [link]
Hub
22 Sep 2016
Re: Njord North Flank Decent volume today so could explain the interest. PoO up and wider markets up so not easy to pin point.Not sure Statoil would do the sidetracks unless they feel it worthwhile. Perhaps hints at the Njord North Flank-2 well delivering some good news but too early to say.Dazzler / Bone is the bigger play and hoping to see some serious sp movement northwards based on the potential of the well. Spud looking like Dec/Jan on that one.With DONG assets set to complete over next 4 to 8 weeks, it should be a busy quarter coming up for Faroe.Just need PoO to stabilise / balance above $50pb in Q4 and OPEC now look like holding a formal Nov meeting instead of the previously planned Dec event.HUB
Wordbodger
22 Sep 2016
Re: Njord North Flank Thanks to rogerlin on ADVFN for noticing that the sidetrack to Njord North Flank is Active and has been logged as Started 20/9/16. Don't know if that's correlated with sp getting back above Placement price today?
Hub
20 Sep 2016
Interims Faroe has coped well with the lower PoO in first half and results look pretty solid.The reserve increases and production that comes with DONG assets make for good headlines. And whilst the decom liabilities and unknowns are tucked away somewhere, the numbers now make FAROE a compelling buy in my opinion compared to peers.I posted a comparison (y/e 2016) with Ithaca on thesharehub earlier today and the difference between the two is quite obvious. Ithaca's debt of £460m sticks out like a sore thumb.Ithaca should deliver on average around 8kboepd more than FAROE in 2017, but the bulk of profits on that 8k production difference just goes toward paying down debt and interest payments.FAROE's cash flows are likely to go straight back into the development of PIL and Brasse among others.5 year plan is ambitious as they seem to be targeting 40kboped to 50kboped.A new presentation is available on FAROE's website.HUB
tamdee
15 Sep 2016
Njord... Kvaerner awarded more work on Statoil’s Njord platform9/14/2016OSLO, Norway -- Statoil has made a call-off from the framework agreement for upgrading of its Njord A semi-submersible platform. The contract, which includes preparations and docking of the platform, has an estimated value of $42.4 million USD.On April 1, Kvaerner signed a project framework agreement (PFA) with Statoil for upgrading of the semi-submersible platform Njord A. The PFA is based on a project execution plan, where Statoil at key milestones, has the option to call-off the execution of further phases. The first call-off for front-end engineering and design was signed at the same time as the PFA. In May, Statoil made a call-off for work at Kvaerner's yard at Stord.The option that now has been called-off is for preparations of reconstruction and execution of docking of the platform, which includes removal of the derrick, flare, lifeboat system and inspection. Prefabrication of time critical elements, mainly two pontoons that will increase the buoyancy of the hull, is also part of the scope-of-work.The platform is moored quayside at Kvaerner, where it will be situated until the derrick, flare and lifeboats are removed. Simultaneously, fabrication of two new pontoons will commence. Work on the dry dock phase is expected to be completed in August 2017.
tamdee
14 Sep 2016
PRESENTATION.... Pareto conference presentation 14 September 2016On there website.
Sambram
16 Aug 2016
Faroe to triple production over next 5 years? "Following completion, the acquisition will add 19.8 mmboe 2P Reserves at a cost of about US$3.5/boe per 2P Reserves and we more than double our FY17 production forecast to more than 15.0 mboe/d. The acquired assets provide opportunities for synergy with Faroe’s legacy assets, as well as cash flow and additional borrowing capacity to fund future growth. On our numbers, the acquisition adds about US$70 mm (net of US$70.2 mm acquisition price), however the Company is issuing over US$80 mm equity at a low share price, resulting in dilution. Net, net and including revised valuations for the Company’s legacy assets in line with the latest CPR, we reduce our ReNAV for Faroe from £1.15 to £1.03 per share. Faroe continues to be one of the very few International E&P stories with a large Net Cash position and no balance sheet concerns. With four key near-term development projects, we anticipate Faroe to triple its current production over the next five years."Firstenergy on research tree
Hub
09 Aug 2016
Statoil Faroe might have timed their Norway asset purchase at just the right time?The bigger the fish, the bigger the infrastructure[link]
Hub
09 Aug 2016
Re: Proposed Acquisition/Placement sorry meant £250mil in last para not £350milIthaca has debt but potentially 50% more productionMarket cap today is £275milHUB
Hub
09 Aug 2016
Re: Proposed Acquisition/Placement Otterman,The shareprice might not have moved much but the market cap has. It's now valued at around £250mil based on 360million shares in issue.When the stock had around 270million shares in issue, an SP of 95p would have got you exactly the same market cap (give or take a mil).And that's the damage that 'dilution' does to the pi. It turns a 50% profit type stock into a 25% profit stock if you follow. The big money (insti's) are quite happy with 25% returns but normally bunkerdown for longer term view.You might not see the share price move quite like it did before because it's carrying heavier market cap compared to peers.The company has added assets to the mix which in theory should be added into market cap but until they complete and produce for a 'term' I doubt the market will give them half of the value they paid for the assets.Faroe still has plenty of upside potential but at £350mil market cap it looks quite well priced considering the reserves base and modest production. Plenty of great 2c resources but not much money to develop them.HUB
Otterman
09 Aug 2016
Re: Proposed Acquisition/Placement HubCould it be that the offer to shareholders was always set up to be taken by the underwriters to increase the institutional holders while giving the façade that the offer had been made to the shareholders so they couldn't complain of dilution. Since the offer the price has been pinned at a level so as to make shareholders not take up the offer (surprised they had the take-up they achieved). Over the offer period it has hardly moved even with the POO recovery, less volatility than a normal week. Hopefully this will now move north again to at least the placing price.
Hub
09 Aug 2016
Re: Proposed Acquisition/Placement Today's confirmation of a Poor 13% take up on open offer is a strong message to management that they are not mugs.Unfortunately, I don't think management care a jot about pi's. Just their institutional buddies.I thought the last placing they did would be the last - and I fear this one is just a continuation of a trend that they have no intention of breaking.For an E&P that gets huge discounts on exploration from Norway, they not half tap the market for cash.Some say Faroe is a well run company. Doing placings every other year certainly helps with the running doesn't it.Anyway - rant over. It's done. Time to move on.The year could still end with a bobby dazzler? But after Brasse, does the market care much for discoveries these days?HUB
Wordbodger
08 Aug 2016
Re: Proposed Acquisition/Placement IMO this is the last Placement they'll get away with. so it had better work.
Hub
05 Aug 2016
Re: Proposed Acquisition/Placement Cash burn is a problem. They have tapped the market nearly every other year for equity placings. Each time to raise cash for much needed ops.My point was... if you have £70million in cash why do a placing for another $80million?Either they need that cash....because 2016 has proven to be a cash burner or they know they are going to need it to sort out the recent acquisition/assets?They have decent debt headroom. They have a decent cash balance (based on y/e Dec 15 figures).Why do a placing at all?My numbers are not prejudiced. I'm just not happy with the recent acquisition and the 70p placing to insti's.It's about time this company began returning some cash to investors rather than constantly drawing on funds.HUB
Wordbodger
05 Aug 2016
Re: Proposed Acquisition/Placement Where's the cash gone? Nowhere. Preliminary Results, 29/03/16, Highlights " Cash and net cash of £91.5 million and £68.5 million respectively at 31 December 2015 (31 December 2014: £92.6 million cash and £69.6 million net cash) - with £23.0 million ($33.0 million) drawn against the £155 million ($225 million) Reserve Based Lending facility" (Pounds, incidentally.)Cash burn is not a problem. They match their expenditures pretty well to the expenses they incur. Most drilling and analysis of seismic comes out of the claim-back from heavily-taxed Norway production. That works to Norway's advantage as much as Faroe, who are content to explore. (HM Treasury take note. Once upon a time Faroe used to explore on UKCS. None next year.) I have to say your figures look wrong and prejudiced.
