Faroe Petroleum bosses’ new firm eyes acquisitions with £10m warchest

Graham Stewart is a North Sea oil industry veteran. Picture: Contributed
Graham Stewart is a North Sea oil industry veteran. Picture: Contributed
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Longboat Energy, the new North Sea firm set up by the former bosses of Aberdeen-based Faroe Petroleum, is eyeing a number of potential acquisitions after raising a £10 million warchest.

The business, which listed on Alternative Investment Market in November, said it is looking at tapping into its “excellent relationships” across the sector to find potential deals to buy exploration and production assets offshore of the UK, Norway and further afield.

As it announced its maiden financial figures yesterday, the company – co-founded by Faroe’s former chief executive Graham Stewart – said it is targeting an initial acquisition that will deliver near term cashflow to provide a platform for growth.

Chief executive Helge Hammer said: “A key objective for any acquisition will be a focus on investments where we believe we can facilitate growth and unlock inherent value. We look forward to updating the market on this process.”

The company has yet to record any revenue and in the period since incorporation to the end of 2019 made a post-tax loss of £196,301.

Faroe was acquired by Norway’s DNO last year following a hostile takeover approach. At the time of the launch of Longboat, the directors said there was a “unique opportunity” to build a “meaningful” North Sea exploration and production business in a relatively short time scale.

Hurricane blown off course

Meanwhile shares in oil and gas firm Hurricane Energy have fallen after a setback to its North Sea development plans.

In an operational update, the company and its partner Spirit Energy said they had decided it would not be possible to tie back a well in the West of Shetland area to the Aoka Mizu floating production vessel already operating on its nearby Lancaster field this year.

The Lincoln Crestal well could now be plugged and abandoned unless it gets an extension to its current suspension permit from regulators.

However, Hurricane said it is planning an accelerated programme at Lancaster, including the drilling of an additional production well later this year.

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