Faroe Petroleum - FPM Stream Log

NB: surprisingly mild reaction from the share price to the news, which I think supports the theory that any premium will not be outrageous here. Or worse that the market thinks the main event is still some time away. Let's hope Mr Market is wrong

Yes. Good news. Hopefully a precursor to the take out. Although I suspect any offer will struggle to clear 120-125p range. Based on current oil prices and in terms of premium to current SP that would still be a great outcome. Very much hope to be proven wrong though...

Firstenergy note out this moring: "Relatively speaking, Faroe shares have not performed very well over the last six months. This probably reflects the defensive profile of the firm, which has a large net cash position and there-fore benefits less from a rebound in oil price. We continue to like Faroe, but among the ‘defensive companies’ with positive net cash and on our new price deck, the firm now offers less upside than Africa Oil. Under our scenario of rising oil prices, ‘leveraged companies’ are also likely to continue performing better." taken from research tree

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