The North Sea-focused Longboat Energy operation chaired by former Faroe Petroleum boss Graham Stewart has underlined its ambition to achieve rapid growth after succeeding in its effort to raise £10 million from investors.

The fund-raising will give Longboat the firepower to pursue acquisitions in the North Sea and pave the way to a stock market flotation for the firm.

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Longboat expects its shares will be listed on the Aim Market from Thursday, November 28.

The company completed the fund-raising after Mr Stewart said he had unfinished business in the North Sea following the takeover of Aberdeen-based Faroe Petroleum by Norway’s DNO in January.

The takeover followed a hostile bid that valued Faroe at £640 million.

Faroe developed significant operations in the UK and Norway under Mr Stewart’s leadership.

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He formed Longboat with other former Faroe executives in the belief the conditions were ripe to build another big North Sea business through acquisitions.

The shake up in the area triggered by the crude price plunge from 2014 has resulted in assets being put up for sale at what some investors see as attractive prices. Mr Stewart reckons the Longboat team has the experience and connections to capitalise on opportunities.

When Longboat launched its fund-raising campaign earlier this month, he said the company was already in talks about potential deals and that former shareholders in Faroe Petroleum had provided encouragement for the new venture.

Longboat’s chief executive Helge Hammer said yesterday that the company had won the support of many large institutional investors including former long-term shareholders of Faroe Petroleum.“We believe that there is a unique opportunity at present to build a meaningful North Sea E&P (exploration and production) company on a relatively short time scale,” said Mr Hammer, who was Faroe’s chief operating officer.

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He added: “Our geological expertise, technical understanding across the North Sea, and deep experience throughout the E&P life cycle mean Longboat Energy will be able to identify the right assets with potential to unlock significant value.”

The founding shareholders in Longboat provided £800,000 of the £10m raised, with the remainder coming from institutional investors.