ABERDEEN-based Faroe Petroleum has started drilling a well off Norway that a major investor it fell out with could benefit from.
The company said drilling operations had commenced on the Rungne well as part of a campaign it said was targeting significant resources off Norway and the UK.
The Faroe-operated Rungne well is being drilled on a licence that Oslo-based DNO is in the process of acquiring a 10 per cent interest in.
DNO became the largest shareholder in Faroe in April after quickly building up a 28.7% holding.
However, the two firms became involved in a war of words after DNO tried to instigate a boardroom shake up at Faroe in August.
Faroe said DNO’s attempt to get two directors elected to its board was part of an undisclosed strategy to try to gain control of the company.
DNO went on to shelve its call for a shareholder vote on the board reform expressing deep disappointment at what it described as Faroe’s “repeated peremptory and disdainful attitude” to its proposal.
A six-month Takeover Code bar on DNO bidding for Faroe ran out on October 4. The company has made no announcements about Faroe since August.
Faroe Petroleum chief executive Graham Stewart said yesterday that the Rungne well in the Norwegian Sea provided the firm with significant upside potential in a core area.
“This is a very active exploration period for Faroe,” he noted. Faroe is set to drill six exploration wells and one appraisal well over the coming 12 months.
It is drilling off Shetland with Cairn Energy and Azinor Catalyst..
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