Ex-Faroe team’s Longboat floats with £10m valuation
Graham Stewart: ‘delivering value’
A new North Sea exportation and production firm created by the former boss of Faroe Petroleum debuted on the London Stock Exchange’s junior market yesterday.
The shares had a muted first day of trading on the Alternative Investment Market, opening at 101.30p compared to its initial public offering price of 100p.
Graham Stewart, former chief executive of Faroe, launched Longboat Energy after raising £10 million through admission to the AIM.
Institutional shareholders have put up £9.2 million with the remainder from the founding shareholders. The placing was arranged by broker Stifel Nicolaus.
Longboat intends to use the proceeds to quickly acquire a portfolio of exploration and production assets.
Mr Stewart, chairman, said: “Longboat has been established to capitalise on the current opportunity in the North Sea and continue the strategy we started at Faroe, delivering value to investors through a combination of innovative and selective M&A, driving operational efficiencies into its assets, and continuing our record as world-class explorers.”
Faroe’s former chief operating officer Helge Hammer, now Longboat’s chief executive, said: “We believe that there is a unique opportunity at present to build a meaningful North Sea E&P company on a relatively short time scale.”
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.”