Services group Falkland Islands Holdings has reduced its stake in Falkland Oil and Gas Ltd, the oil and gas exploration company focused on licence areas to the South and East of the Falkland Islands.
FIH has sold three million shares in FOGL representing 20% of its holding and 2.1% of the issued share capital of FOGL.
FIH's still retains 12 million shares in FOGL representing 8.2% of the enlarged issued share capital. The shares were sold for £ 3.58m generating a profit of £ 3.1m for FIH.
The funds will be used in FIH's existing businesses and will provide flexibility to take advantage of opportunities particularly in the Falkland Islands.
The Board of FIH has advised FOGL and Oriel Securities the broker to FOGL that FIH does not intend to dispose of any further shares in FOGL, other than in exceptional circumstances, prior to completion of the drilling of the Toroa well.
”We have today reduced the risk profile of our Group. The proceeds of sale give us the flexibility to take advantage of investment opportunities particularly in the Falklands and will leave us with a modest level of gearing .At the same time we have retained a very meaningful shareholding in FOGL”, said CEO David Hudd.