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Faroe CEO Stewart quits as DNO closes in

CFO and COO of UK player also resign ahead of takeover by Norwegian company

Three senior executives, including boss Graham Stewart, have resigned from UK player Faroe Petroleum as Norway's DNO closes in on its takeover.

Chief executive Stewart, chief financial officer Jonathan Cooper and chief operating officer Helge Hammer have all tendered their resignations, London-listed Faroe said on Friday afternoon.

The three months' notice given by each is "pursuant to the change of control provisions" in each of their contracts of employment and come after DNO's shareholding was pushed up to 63.32%.

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"The executive directors have also stated their intention to resign from all directorships and other offices which they hold with Faroe Petroleum and all of its subsidiaries as soon as is practicable, with the intention of remaining as directors until such time as new replacement executive directors are appointed, to ensure an orderly transition, but in any event at the latest by the end of their three month notice periods," Faroe said.

DNO boosted its interest in Faroe from the 43% it owned at the start of this year, but needed to move above the 57.5% acceptance condition to be able to take control.

On Thursday it acquired over 75 million additional shares for between 159.8 and 160 pence ($2.038 to $2.041) per share and was set to secure control of Faroe after gaining shareholder acceptances equating to 72.8% of the company's shares.

Bijan Mossavar-Rahmani, DNO's executive chairman, said this week: “It is in the nature of our industry that entrepreneurs with vision, fortitude and a dollop of luck can create small, successful companies that are in time sold to larger ones with greater managerial and operational depth and stronger financial firepower and which, in turn, are swallowed by even larger companies.

“Faroe had a good run. The baton now passes to DNO."

Earlier on Friday, Faroe revealed final results from its appraisal sidetrack well on the Brasse discovery in the Norwegian North Sea.

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Faroe said the 31/7-3A appraisal sidetrack hit 62 metres of gross hydrocarbon-bearing Jurassic reservoir.

Faroe had recently said that the appraisal encountered about 40 metres of gross hydrocarbon-bearing Jurassic reservoir, in line with expectations.

The well, which spudded on 17 December, was drilled to 2254 metres with the semi-submersible Transocean Arctic.

Faroe also said it found about 20 metres of oil-water contact, which was "significantly" deeper than was expected.

It also said the net-to-gross ratio of hydrocarbons found was lower than expected.

The well was appraising the northern part of the Brasse field.

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