Norwegian oil company DNO ASA has achieved another slight increase to its stake in Faroe Petroleum, it said Jan. 4 as it continues its battle for control of the British business.
DNO's combined ownership and bid acceptances now stand at 43.8%, up from about 43% on Jan. 3 but still short of a controlling stake in London-listed Faroe.
It had previously required backing from 57.5% of Faroe shareholders to take control, but that fell to 50% on Jan. 3 after it lifted its holding sufficiently to turn the bid from voluntary to mandatory and thus subject to takeover regulation requiring a lower threshold.
Faroe separately reiterated its view on Jan. 4 that the 610 million pound (US$772 million) offer was inadequate, undervaluing the North Sea portfolio that DNO covets as it seeks to expand its operations, which are primarily based in the Middle East.
A report by oil industry analysts Gaffney, Cline & Associates, first released by Faroe on Jan. 2, valued the Aberdeen-based company's shares at between 186 and 225 pence, a premium of up to 48% on DNO's offer price of 152 pence.
DNO's shares traded up 4% by 2:43 a.m. CST (8:43 GMT), supported by a 1.6% increase in the price of crude oil, while Faroe shares rose 0.5% to 154 pence.
Faroe shareholders have been set a Jan. 18 deadline to decide whether to accept DNO's bid. (US$1 = 0.7899 pounds)
Saudi Aramco’s profits plummeted last year, but it stuck to a promised $75 billion annual dividend, most of which goes to the Saudi government.
The new partnership expands Pickering Energy Partners’ current investment platform to include SailingStone’s energy transition, global natural resources and ESG investment experience and strategies.
It’s not the Keynes kind; it’s the Jack London kind. E&P executives are restless, according to a Dallas Fed survey, and they’re going mano y mano for market share. Will it manifest in consolidation? Where to next for the sellers? For some, it’s a new land rush: energy transition.