Aberdeen-based Faroe Petroleum, the independent oil and gas company, said it completed the previously announced acquisition of interests in five Norwegian North Sea producing oil and gas fields.

Faroe Petroleum CEO Graham Stewart said: “The acquisition of these producing fields creates a new strategic hub for Faroe, centered around the Ula platform, in one of our core areas offshore Norway …

“This transformational deal paves the way for Faroe’s evolution into a full cycle exploration and production business fit for the modern industry as we continue to grow the value of the company through exploration, development and production with a high quality and diverse portfolio of assets.” 

Faroe said the stakes acquired from Dong E&P Norge AS are Ula (20%), Tambar (45%), Tambar East Unit (37.8%), Oselvar (55%) and Trym (50%) .

“The net consideration payable at completion was approximately $26.7 million, down from the previously announced original consideration of $70.2 million, reflecting both economic production from 1 January 2016, which has outperformed previous expectations and other working capital adjustments,” said Faroe.

“Remaining proved and probable reserves from the acquisition as evaluated by the company as at 1 January 2016 were 19.8 million barrels of oil equivalents (mmboe) net to Faroe Petroleum, while the preliminary average economic production for the eleven months to 1 December 2016 net to the company was approximately 9,900 million barrels of oil equivalents per day (boepd).

“We now take this opportunity to upgrade our 2016 guidance with a narrower range from 17,000 to 18,000 boepd, including economic production from the acquisition.”