Norway's DNO ASA is sticking to its offer to buy Faroe Petroleum for 152 pence per share, valuing the company at about 610 million pounds (US$761.65 million), insisting it is an attractive offer despite its rejection by the Faroe board.
The Faroe board has said the company was worth substantially more than the bid, first announced on Nov. 26. DNO already owns 28% of Faroe Petroleum.
Faroe Petroleum shares traded up 0.3% to 153.4 pence per share by 2:40 a.m. CST (8:40 GMT) while DNO's were up 0.8%, in step with a European Oil and Gas index up 0.4%.
RELATED: Faroe's Asset Swap With Equinor Could Raise Stakes In DNO Bid Battle
"This full and fair offer provides Faroe shareholders a rare opportunity to exit their relatively illiquid AIM-listed positions at an attractive price in a volatile and uncertain market for oil and equities," Bijan Mossavar-Rahmani, executive chairman of DNO, said in a statement on Dec. 12.
Acceptances must be received by 7 a.m. CST (13 GMT) on Jan. 2, the first closing date of the offer, unless the acceptance period is extended, DNO said. (US$1 = 0.8009 pounds)
Recommended Reading
Exxon Versus Chevron: The Fight for Hess’ 30% Guyana Interest
2024-03-04 - Chevron's plan to buy Hess Corp. and assume a 30% foothold in Guyana has been complicated by Exxon Mobil and CNOOC's claims that they have the right of first refusal for the interest.
Pitts: Heavyweight Battle Brewing Between US Supermajors in South America
2024-04-09 - Exxon Mobil took the first swing in defense of its right of first refusal for Hess' interest in Guyana's Stabroek Block, but Chevron isn't backing down.
Exxon Mobil Green-lights $12.7B Whiptail Project Offshore Guyana
2024-04-12 - Exxon Mobil’s sixth development in the Stabroek Block will add 250,000 bbl/d capacity when it starts production in 2027.
Exxon Ups Mammoth Offshore Guyana Production by Another 100,000 bbl/d
2024-04-15 - Exxon Mobil, which took a final investment decision on its Whiptail development on April 12, now estimates its six offshore Guyana projects will average gross production of 1.3 MMbbl/d by 2027.
Chevron Hunts Upside for Oil Recovery, D&C Savings with Permian Pilots
2024-02-06 - New techniques and technologies being piloted by Chevron in the Permian Basin are improving drilling and completed cycle times. Executives at the California-based major hope to eventually improve overall resource recovery from its shale portfolio.