TEL AVIV Dec 25 Israel's Delek Group
said on Sunday it acquired 13.18 percent of Faroe Petroleum PLC
from Dana Petroleum Ltd for 42.77 million
pounds ($52.6 million) as part of a strategy to expand its
international energy activities.
Delek bought from Dana Petroleum all the Faroe shares it
owned - 48.06 million shares - at 89 pence each.
Faroe is an oil and gas exploration and production company
operating in the North Sea. Its shares traded on AIM closed at
99 pence on Friday for a company valuation of 360 million
Faroe has no controlling shareholder and upon completion of
the acquisition Delek will be its largest single shareholder.
Faroe's portfolio includes about 60 drilling, evaluation,
development and production licenses for oil and gas in the North
Sea, in Norway and the United Kingdom.
As of Jan. 1 resources stood at 61 million barrels of oil
equivalent (MMBOE), and following completion of a transaction
for the acquisition of additional assets in December, proven
resources are expected to increase by 20 MMBOE.
In the first half of 2016 Faroe produced 9,000 barrels of
oil equivalent per day (BOEPD), and following acquisition of the
additional assets, daily production is expected to grow to
"Acquisition of the Faroe shares is synergistic with and
complements the purchase of 20 percent of the shares of Ithaca,
which we did about a year ago," Delek Chief Executive Officer
Asaf Bartfeld said.
($1 = 0.8137 pounds)
(Reporting by Tova Cohen; Editing by Steven Scheer)