OIL and gas minnow Faroe Petroleum said yesterday it had increased its stake in an offshore licence near the Faroe Islands from 25% to 100% and assumed the role of operator.
The company, which specialises in exploring the untapped margin of the North Atlantic, had held the licence in a joint venture with Eni. It did not reveal any financial details of the transaction.
Licence 002 covers 214 sq km, and Faroe believes it contains an undrilled structural lead known as Orodruin which has "significant reserve potential". The term of the licence currently extends to August 2006.
Graham Stewart, chief executive, said: "We are very pleased to have increased our stake in Licence 002 which we believe has the potential to yield significant value.
"Following this acquisition, Faroe Petroleum is the operator of two of its four Faroese licences, in a portfolio now encompassing 11 licences in total. This transaction further enhances Faroe Petroleum's appeal to the investor seeking a direct route to the value potential of the Atlantic margin region."
Faroe also said it had successfully completed a 2D seismic survey over its Freya field, the first survey in a programme scheduled for six of the company's Atlantic margin licences in the current year.
Elsewhere, the Russian government has approved a dollars -7.15bn (pounds -4bn) price tag for the state to acquire control of the world's largest gas producer, Gazprom.
Andrei Sharonov, a deputy minister for economic development, said his ministry and other government agencies had approved the price, and that a bid would be submitted to Gazprom's board for approval.
Under a plan approved in September by Russian president Vladimir Putin, the state is to acquire 10.74% of Gazprom shares to gain a controlling interest, paving the way for the long-awaited removal of restrictions on foreigners owning stock in Gazprom.
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