Faroe Petroleum's finance director Iain Lanaghan bought shares prior to them going ex-rights.
The oil and gas explorer and producer is raising £69.8m via a two-for-three rights issue at 100p a share. Faroe will receive £65.1m after expenses and this will take its net cash to nearly £90m.
Lanaghan bought 39,290 shares at 125p each at a total cost of just over £49,000. The purchase was on 27 April, which was the day of the results and rights issue announcement. The shares went ex-rights on 28 April.
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This is a strange number of shares to buy given the rights issue terms because it is not divisible by three. Lanaghan will have the right to subscribe for 26,193 rights shares at a total cost of £26,193.
Faroe will spend its cash on drilling eight new wells over the next two years as well as enhancing existing reserves and increasing production. Faroe will also apply for more exploration licences in the UK, Norway and Greenland. Faroe could also farm-in to existing wells in the North Sea.
Faroe made discoveries at Glenlivet and Tornado in UK waters in 2009 and earlier this year made a further discovery in the Norwegian sector of the North Sea at Fogelberg.
Faroe's revenues increased from £2.28m to £7m in 2009. The post-tax loss fell from £20.61m to £6.91m - after a £17.7m gain on the sale of its interest in the Breagh field. There are accumulated tax losses of more than £50m.
Top Director Buys
Baker Steel Resources Trust (BSRT) Director name: Mr Edward FloodAmount purchased: 65,000 @ 100.00p Value: £65,000
Faroe Petroleum (FPM) Director name: Mr Iain M LanaghanAmount purchased: 39,290 @ 125.00p Value: £49,112
Inland (INL) Director name: Mr Nishith Motilal Meghji MaldeAmount purchased: 150,000 @ 19.32p Value: £28,980
Baker Steel Resources Trust (BSRT) Director name: Mr Clive NewallAmount purchased: 25,000 @ 100.00p Value: £25,000
Baker Steel Resources Trust (BSRT) Director name: Mr Christopher SherwellAmount purchased: 25,000 @ 100.00p Value: £25,000
AI Claims Solutions (ACS) Director name: Mr Robert NewtonAmount purchased: 100,000 @ 21.75p Value: £21,750
Corac Group (CRA) Director name: Mr Philip CartmellAmount purchased: 100,000 @ 21.50p Value: £21,500
Informa (INF) Director name: Dr Brendan Richard O'NeillAmount purchased: 4,000 @ 391.39p Value: £15,656
Corac Group (CRA) Director name: Professor Gerry MusgraveAmount purchased: 75,000 @ 20.83p Value: £15,622
Top Director Sells
AI Claims Solutions (ACS) Director name: Mr David SandhuAmount sold: 97,333 @ 21.75p Value: £21,170
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