FAROE Petroleum has shown UK North Sea assets are still demand in spite of the crude price plunge by agreeing to buy stakes in two fields for up to $20m (£13m) from Roc Oil.

The deal will result in Faroe increasing its exposure to the Blane and Enoch fields which it knows well.

It reflects the company’s belief that it can still generate good returns from investing in the North Sea although Brent crude is trading at less than half the price it fetched in June last year.

But as the assets are only producing ones held by Roc Oil in North Sea, the transaction will result in a big reduction in the Australian firm’s presence in the area.

Roc Oil also has interests in Australia, China and Malaysia. The company was acquired by Fosun, a Hong Kong investment business, for $440m in August last year.

All the same, the acquisition will be welcomed by sector watchers as a sign of interest in the North Sea, where firms have been slashing investment and jobs in response to the crude price slump since June last year.

On Monday Maersk provided a major fillip by giving the go-ahead to the £3bn development of the giant Culzean gas field off Aberdeen.

Faroe Petroleum’s chief executive Graham Stewart noted the company sees scope to find more oil on the Blane licence. The field was brought onstream in 2007.

He said: “We are very pleased to announce this acquisition, which increases our stake in the low cost, high quality and long field life Blane asset. Blane offers significant upside potential in the form of increasing reserves and production as well as in extending field life.”

Mr Stewart noted that Faroe has amassed big tax losses on its UK North Sea activity that can be set against the profits made on production from fields.

Producing North Sea assets are likely to be more attractive to firms that have tax losses to utilise than those without them.

Analysts at Canaccord said in a note: “We see this as a sensible transaction at a fair price, with upside scope and efficient use of tax losses.”

The company is acquiring a 12.5 per cent stake in Blane and a 12 per cent interest in Enoch from Roc.

Faroe noted the Enoch field was closed in due to a leak at the subsea well-head, which has since been repaired. The field is currently planned to be brought back on production during the second half of the year.

It has agreed to pay $17m plus a deferred payment of up to $3m depending on the fields’ performance.

Faroe already held 18 per cent of Blance and 1.86 per cent of Enoch.

The company will fund the acquisition using cash and its existing borrowing facilities.