Faroe Petroleum has announced the completion of previously announced acquisition of interests in five oil and gas fields located in the Norwegian North Sea.

Faroe Petroleum acquired this ownership stake from Dong E&P Norge.

The five fields are Ula (20%), Tambar (45%), Tambar East Unit (37.8%), Oselvar (55%) and Trym (50%).

"The company noted that it was significantly lower than the previously announced tentative consideration of $70.2m."

The final consideration paid by Faroe Petroleum after the completion of the transaction was around $26.7m.

The company noted that it was significantly lower than the previously announced tentative consideration of $70.2m.

It reflects economic production from 01 January 2016 that outperformed earlier expectations and related working capital adjustments.

Faroe Petroleum chief executive Graham Stewart said: “We are pleased to announce the completion of this acquisition, which broadens and strengthens our production base materially and both boosts and diversifies our profitable oil and gas production portfolio.

“The production from the acquired assets has exceeded our expectations for the year to date in turn reducing the final consideration amount below guidance.

“The acquisition of these producing fields creates a new strategic hub for Faroe, centered around the Ula platform, in one of our core areas offshore Norway; synergies have already been realised with the upcoming development of our Oda field, announced last week, which will be tied back subsea to Ula.

“This transformational deal paves the way for Faroe’s evolution into a full cycle E&P business fit for the modern industry as we continue to grow the value of the company through exploration, development and production with a high quality and diverse portfolio of assets.”

Faroe Petroleum assessment of proved and profitable reserves of these acquired assets as at 1 January 2016 to be 19.8mmboe net to the company.

The initial average Economic Production for eleven months to 01 December 2016 net to the company was nearly 9,900 boepd.

Currently, Faroe Petroleum plans to upgrade 2016 guidance from 17,000 to 18,000boepd which includes economic production from the latest acquisition.

Faroe Petroleum is an independent oil and gas company that primarily focuses on exploration, appraisal and production opportunities in the UK and Norway.