February 12, 2018 / 7:11 AM / 6 months ago

BRIEF-Faroe Petroleum ‍sells 17.5 pct stake in Norway's Fenja to Suncor

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​

* ‍TRANSACTION IS ANTICIPATED TO COMPLETE DURING H1 2018​

* ‍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)

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