"Faroe bosses can win 449 million euros on sales at DNO

After DNO attempted on Monday to gain full control of the company through an offer of 4.9 billion crowns, Faroe Petroleum was severely beaten and said the company was not for sale at that time. price.

The offer was 20.8% higher than the stock price of Faroe on Friday, and the oil company was valued at NOK 6.7 billion. Faroe, however, encouraged shareholders to stay calm.

"We believe that Faroe is worth more than 152 pence in cash per share and we urge shareholders to reject opportunistic, undesirable and inappropriate offers of DNO," said Fergus chairman John Bentley.

FT commentator: – DNO should increase the offer

Following DNO's offer, Matthew Vincent, a noted Financial Times commentator, believes that DNO's protest actions could be tempting to Faroe shareholders if they had not been "negative" – ​​DNO's Is willingly shown rude to attract Faroe's shareholders.

According to the commentator, it is not even necessary for Faroe to receive as much as a telephone conversation from DNO.

"Now that Faroe has urged its shareholders to ignore the first offer of 152 pence per share and that the vast majority of analysts have concluded that the increased offer is too low, DNO has to raise it and talk to Faroe" says Vincent to Aftenbladet.

"But could not this acquisition be a win-win solution for DNO to fund Faroe's comprehensive growth plans?"

"It is clear that DNO could provide long-term capital for Faroe's growth ambitions." DNO undoubtedly has strong financial strengths that could help Faroe in his projects on the Norwegian Continental Shelf, but if shareholders in the Faroe Islands sell this growth potential to DNO, they must be offset by more than 152 pence per share.The Faroese leaders are perhaps more conclusive because they can earn 449.2 million pounds of options, has declared the commentator.

Listen to the Oilcast episode where is interviewed Helge Hammer, head of Norwegian operations at Faroe Petroleum.

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DNO estimated that their bid amounted to 443.8 million pounds. 402.6 pounds were for Faroe shares they do not own and the rest were options for Faroe directors.

Aftenbladet was in touch on Tuesday with Faroe's Norwegian chef, Helge Hammer, who said he was unwilling to comment on the company's situation.

DNO

• Founded in 1971
• Focusing on the Middle East region, was the first international oil company in Kurdish Iraq.
• Back to the NCS in 2017
• Production of 110,000 barrels of oil in 2017.

Not the good price

That there is a bad mood between DNO and Faroe is not new. After DNO bought more than 28% of Faroe's shares in April, she attempted to acquire a seat in the company in August and praised the accusations made by both companies.

After the offer on Monday, Faroe estimates to have a much higher growth potential than DNO. Analyst Aftenbladet said Monday that the price was good. Faroe points out, among other things, that research conducted by Iris / Hades and Agar in 2018 has yielded convincing results in research. The company has also launched a major drilling campaign that it says could provide significant resources and discoveries over the next 12 months. Faroe's goal is to produce 35,000 barrels a day in the near future.

"We think the offer of DNO does not recognize these qualities and the fair value of their shares," Faroe wrote in a message to shareholders Monday evening.

The announcement came after DNO described Faroe as a "relatively small, economically limited" company, with Norwegian assets better "compatible with DNO".