Feb 12 (Reuters) - Faroe Petroleum Plc:
* HAS EXECUTED A TRANSACTION WITH SUNCOR ENERGY NORGE AS (‘SUNCOR’) FOR SALE OF A 17.5% WORKING INTEREST IN FENJA DEVELOPMENT LOCATED IN PL586 IN NORWEGIAN SEA
* FAROE TO SELL 17.5% STAKE IN FENJA DEVELOPMENT TO SUNCOR FOR CASH CONSIDERATION OF $54.5 MILLION (INCLUDING TAX BALANCES)
* TO RETAIN 7.5% STAKE IN FENJA, UNDERLINING FAROE’S SUPPORT FOR PROJECT, AND FULLY ALIGNING FAROE’S EQUITY AT 7.5% ACROSS GREATER NJORD AREA (NJORD, FENJA, BAUGE AND HYME)
* TRANSACTION IS EXPECTED TO REDUCE FAROE’S FUTURE CAPITAL EXPENDITURE ON FENJA TO APPROXIMATELY £70 MILLION
* MAINTAINS FAROE’S STRONG BALANCE SHEET AND FULLY FUNDED POSITION ACROSS ITS PORTFOLIO OF NORWEGIAN FIELD DEVELOPMENTS
* TRANSACTION HAS A 1 JANUARY 2018 EFFECTIVE DATE AND REMAINS SUBJECT TO USUAL AND CUSTOMARY CONDITIONS
* OPERATOR, VNG NORGE AS, EXPECTS TOTAL GROSS RECOVERABLE RESERVES FROM FENJA DEVELOPMENT OF APPROXIMATELY 97 MILLION BARRELS OF OIL EQUIVALENT (72% OF WHICH IS OIL) Source text for Eikon: Further company coverage: (Reporting By Terje Solsvik)
