Israel’s Delek Group has wrapped up a deal with Dana Petroleum to acquire a 13.18% stake in Faroe Petroleum in a move that bolsters Delek’s North Sea portfolio and makes it the majority stakeholder in Faroe.

Under the agreement, Delek acquired all of Dana’s shares in Faroe for $52.3 million.

Asaf Bartfeld, Delek’s president and CEO, said “Acquisition of the Faroe shares is synergistic with and complements the purchase of 20% of the shares of Ithaca, which we did about a year ago. Delek Group’s financial strength allows us to identify strategic expansion opportunities, by which we are working to increase the value we provide to Delek Group’s investors.”

Faroe’s portfolio of gas and oil assets includes some 60 drilling, evaluation, development and production licenses for oil and gas in the North Sea, in Norway and the U.K., of which Faroe has operatorship.

As of Jan. 1, 2016, resources (P2) stood at 61 MMboe, and following completion of a transaction for the acquisition of additional assets in December 2016, proven resources are expected to increase by 20 MMboe, Delek said.

In first-half 2016, Faroe produced from the assets it owns 9,000 boe/d, and following acquisition of the additional assets mentioned above, the production output is expected to grow to between 17,000 boe/d and 18,000 boe/d.

In late December, Faroe entered deals with two banks that secured funding for the company’s growth plans. One loan is for $250 million and the second is for $115 million.

Earlier in December, Faroe and DONG E&P Norge completed an acquisition deal consisting of five Norwegian North Sea oil and gas fields, with Faroe paying less than half of the original $70.2 million price, Delek noted.

In total, Faroe paid $26.7 million to acquire equity in Ula (20%), Tambar (45%), Tambar East Unit (37.8%), Oselvar (55%) and Trym (50%).

—Steve Hamlen