Faroe seems nice, I did a quite extensive dd on them a year or so ago and thought they were fairly solid. I just didn't like their exploration focus: they have production to explore and as such it's not a direct fit with SLG. SLG wants to acquire to lock down their tax advantages, hence my link to Iona that wants to do exactly the same (but let's not start that one gain.). Now that's not to say Faroe can't be flexible but still.
Would you find a 15%-85% a favorable deal? Seems a tough sell.
Hence my point that if SLG would merge with a strong(er) company they would be the underdog in negotiations. If you have 2 companies that benefit similarly and are in comparable problems the negotiations happen on a much more equal basis.
Just connecting the dots: ultimately we'll have to see what comes out.
Good luck,
R.