This company seems to have been searching for a long time - any ideas out there?

Directors buy shares, click HERE

This is an underrated stock, and I have a smallish holding and topped up the other day; (wish I had bought more !) I shall add this to my share tips for 2009 !......tremendous acreage....and big drilling campaign under way....if one well is a duster the next will be a success as this is a very active company and the best part is that exploration costs are fully funded and can be offset against Norwegian tax !....very strong possibility of a huge strike at some point in the next 18 months along the Norway coast.

This is now...only just seen it this morning an IC tip as well as a Shares magazine tip ....loads of upside by the look of things !.

Back in this and by the look of things in the nick of time.

Rocket like increase here...a leak from the platform about an early oil or gas discovery possibly ?.

Gas discovery....good news...and 4 more wells to be drilled...looking very promising for the sp.

Doing fine...my only regret is not buying more here...

PS : I thought Glenlivet was in my whisky locker....turns out that it's a well....perhaps there's some of the strong stuff down there !.

Good end to the week for this one....I seem to be the only person interested here...

Well this is really flying....it's all single malt drilling here....

Up again....target for somebody ? or just the drilling success and potential ?.

I recall that Dana Petroleum have a substantial share holding, paying 1.40 odd last year sometime before the crash. Have they quietly been adding to this when price dropped ?

Stan59
I think Dana have about 29% so can't buy much more without triggering an offer

Good news from FPM and DNX.....sp rocketing at the moment....

Nice update.....undervalued by a mile, this.....

Another success....well done Faroe...getting a reputation for good drilling this little gem...should be double the present cap...

Up again...well worth 200p this one.

Heading for a breakout of the trading range...

About to spring a lot higher...due to discoveries...one after another...we talk about the falklands but closer to home this is an undiscovered gem....

Fund raising....damn....down 20p.....at this price : it won't be worth doing....at 145p it was....

Decided to take up the rights in Faroe petroleum.....raising a big amount of capital...but so much drilling potential and so far 3 wells drilled this year with 3 successes...not a bad percentage...and very good right-ups in the share mags...surprised that nobody here seems to rate this one, apart fom myself...

Like you, I will be taking up the rights. I agree that past success rate and future prospects seem good. Greenland option is also very interesting.

I'm hoping for a quick return to the 140ps.....Greenland looks like the next favourite place for a lot of oil companies....Cairn due to start drilling there this summer.....but that is a hefty stock already...

The rights issue has come at the wrong time.....10% less than the real sp....hardly worth taking up....at this rate I reckon FPM might have to pull the fund raising....bad luck....

Shares mag today states that rights issue is fully underwritten

Probably too late to stop it ...but funds could have been used for Rockhopper see (RKH)....10% is all we are going to make here unless there is a sharp recovery...

7%.....this was at 145p the other week.....the marketmakers are taking the piss here...

Of course they are.

Any company that does a rights these days can expect their sp to drop below that price.

Just the way of the world today.

Directors buying...shares up...much better....

Nice rebound and about time too....

Creeping up.....discovered something ?...

Up again gently....

4 out of 4 successful wells...remarkable !.......super discovery 250 million to over 500 million barrels of oil ......

At long last some volume here....2.5 million shares traded....

Suodnemert.....merveilleux...n'est-ce-pas...?...Foilkies eat your heart out....

Going ballistic now amd rightly so, what with what has been discovered, more wells being spudded plus the possibility of acreage in Greenland alongside the likes of Cairn Energy : this has still a lot of untapped potential.

Nobody else in this ?.....more to come in future months from FPM, a lot more....

why or where is there more and/or how soon?
market has shown no follow through either

Big drilling campaign on going off Norway plus the possibility of Greenland acreage being awarded to them soon.....like Cairn Energy....the sp will go further bit by bit.

when is next spudding due? .... if not within a few weeks, then surely sp is likley to drift

Now an expert on drilling officeboy.

Any moment now....perhaps on monday.....this is looking terrific....good for something above 200p by the end of the summer perhaps.

New well spudded (in with Dana Petroleum).....should keep the interest going, followed by two more....

On the rise again.....crikey...this is looking good....

it took a relatively long time to think about moving up again

I know....took a tiny profit on a small amount the other day (15%)...wish I hadn't....jumping up now.....

Up she goes again.....superb little oil compay this one.....wait till they get something in Greenland....sp will be above 200p then....

Every day there is a little rise...what a stock.....

If KNOC succeed in taking over Dana, who own about 29% of Faroe, perhaps this will be KNOC's next target, especially if Anne Marie, currently drilling, finds oil or gas.

186p......all time high......surprised not many people interested.....

Going great guns here.....something's afoot possibly ?...

Looking undervalued with tremendous prospects.....

Up again.....if this comes up with a big strike.....wooossshhhh....

Going like a train...

Was it something I said..?......by jove !....

i've had a look at these and cannot get inspired ..... sp has had a nice rise today on no news, but sellers now outnumber buyers 2:1

You cannot go by 2nd level all the time, it's about what the stock has to offer...I've been in from about 50p or so.....and there is a lot more to come...

i was looking for inspiration to buy and didn't find it!

How about a hefty drilling campaign ?.....5 strikes out of 5 so far in the last 2 years and some incredible high impact wells off the coast of Norway to be spudded and along the atlantic margin....just one of these comes in and it will go up to 300p and beyond...plus what they already have and something in the north sea and the market cap is not too high for such an oilie.....I'm staying put and even if the sixth well which they are drilling now does not come right : I shall not be selling....now...do I get my sales badge ?......well financed plus all exploration costs can be offset against Norwegian tax....

thanks for that RF .... shall look again tomorrow, prob with buying boots

Did you buy some Cynic ?....sp doing well...but nothing is sure about the next well results....long term, it looks excellent value....300p is not beyond this stock regardless of current well expectations.....5 more wells to come within a year at least....

yes i did, this morning, though at slightly too high a price

One of the tips this week in the Investors chronicle.....lot...lot more to come....in time...perhaps in a year, this might be worth double what it is today....

Above 2 now and rising....also possibility of a takeover for FPM as the Koreans are on the prowl along with a few others....

An update on their latest well must be due soon....

Still no news.....really overweight on this one....a dry well would not be a disaster as plenty more coming up....but a success could send the share price into the stratosphere....plus news on possible Greenland acreage is due soon....so plenty in the pipeline for this gem.....

RF - you don't half go out on a limb! .... hope you have more than the normal count of fingers

I have bought in heavily here.....biggest asset in my portfolio.....so many positives.....could be taken out by a bigger boy as well....even if the latest well comes up dry, it will not be a disaster like for many other oil companies...if you read through their finals or interims..: the number of assets is impressive, coupled with a not exaggerated sp....looks tremendous to me, this one.....

Should be nearing target....might have encountered hydrocarbons....still no news...

Looks like : quite a few buys this morning.....are we about to break away from the 200p's....?.

Good purchase...with production plus exploration...good balance of assets.....could hit a huge discovery in future years....

RNS

And where is the bad news ?.....sp down on what ?....

Faroe Petroleum plc ("Faroe Petroleum" or the "Company")

Results of Anne Marie exploration well and operational update on Lagavulin
exploration well


Faroe Petroleum plc, the independent oil and gas company focusing principally on
exploration, appraisal and production opportunities in the Atlantic margin, the
North Sea and Norway, is pleased to announce the results of drilling on the Anne
Marie exploration prospect (Faroe Petroleum 12.5%), located offshore in Licence
005 in the Faroe Islands, and provide an operational update on drilling on
Lagavulin, UK west of Shetlands.

Anne Marie
Well 6004/8a-1 on the Anne Marie prospect was spudded on 23/07/2010 and drilled
to a total depth of 3,901m, in 1,106 metres water depth, 190 kilometres south
east of Tshavn. Total depth was reached on 25 October 2010. Hydrocarbons have
been found in thin sandy layers dispersed in a thick volcano-clastic sequence of
Paleocene age, indicating robust evidence of the presence of an active petroleum
system. Further analyses are in progress to evaluate the size and the
characteristics of the discovery.

The Norwegian semi-submersible drilling rig Seadrill West Phoenix, which was
used for the drilling operation, is expected to plug and abandon the well as
planned and move away from the location in the coming days.

The joint venture is composed of Eni Denmark BV as operator with 25%
participating interest, Dana Petroleum 25%, OMV 20%, Cieco E&P (Faroe) Limited
12.5%, First Oil Expro 5% and Faroe Petroleum 12.5%.

Lagavulin
The Lagavulin exploration well (Faroe 10%), operated by Chevron, in the UK
Atlantic Margin to the west of the Shetland Islands, was spudded last month.
The well is being drilled with the Stena Carron drillship operating 230
kilometres (143 miles) north east of Chevron's Rosebank/Lochnagar discovery.
The Lagavulin well will target a number of potential oil bearing reservoirs of
pre-Cretaceous to Paleocene age located within a large, elongated four-way
structural closure. Lagavulin, which lies across blocks 217/10 and 210/14 and
15, has a reserve potential of more than 500 million barrels of oil equivalent,
classing Lagavulin as one of the largest undrilled structural closures on the
Atlantic Margin. The well is expected to take around 120 days to complete from
spud.

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

"Whilst we did not encounter thick reservoir sands at the Anne Marie well
location, the discovery gives us significant encouragement to continue
exploration efforts in this licence, which we have held together with ENI for
over 10 years."

"Our high impact exploration programme continues with the drilling of Lagavulin,
and Faroe's ongoing multi-well exploration drilling programme will carry on
through 2011 and beyond as we push forward to test our substantial northern seas
portfolio of over 40 significant licences, to which we have last week added a
further four, as operator, awarded under the UK's 26th Licensing Round."

On to the next well....I'm not getting any rns's here at all...

brave face on bad result

I have faith in this company long term.....hydrocarbons found....loads of wells to be drilled...one day they will hit a huge strike...just a matter of time....and the market cap is still low....compared to others...

SEO has a low market cap too and CNT even lower

Don't be ridiculous Cinners.....you know it's a good one....come back in a year or even just 3 to 4 months...250p minimum....in a year 300p to 400p....

yeah yeah yeah ..... that's what was said about SEO too

Sounds like the Beatles to me.....

Forgot to buy back in here......damn....

Shares Mag thinks there is now much more potential in FPM due to the asset swap:
Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, is pleased to announce that it has signed an agreement with Petoro AS ("Petoro"), to swap its interest in the Maria discovery for interests in a number of oil and gas production assets in Norway.

Highlights
Maria discovery swapped with Petoro for interests in the Njord, Brage and Ringhorne East production assets
Pure asset swap - no cash consideration
Effective date 1 January 2011
Adds over 7,300 boepd to Faroe's estimated 2011 average production, with good upside potential
Including Blane, Faroe's estimated 2011 average production now expected at 9,200 boepd
Adds over 14 mmboe of 2P reserves to Faroe
Petoro to retain projected abandonment and decommissioning liability of approximately NOK600m (67m)
Proves business model of monetising exploration success - within nine months of Maria discovery
Meets Faroe's stated strategy of efficiently and cost-effectively building production and revenues
Transaction transfers to Petoro Faroe's estimated 280m net capital investment requirement for Maria development
Significantly increases cash flow and debt capacity to fund further exploration and other growth.

Tom Sieber:
666% Is the increase production at oil explorer Faroe Petroleum (FPM:AIM) production following an asset swap deal with Norwegian state-owned energy firm Petoro. This should allow the company to fund its exploration efforts without recourse to the equity market and investors should buy ahead of near-term results from the high impact Lagavulin well in the Atlantic Margin which could be worth as much as 162p a share according to broker Evolution Securities. The agreement will see the 389 million cap swap its Maria discovery for interests in three fields in Norway. The deal is doubly attractive to Faroe because, in addition to increasing its output from 1,200 barrels of oil or equivalent per day (boepd) to 9,200 boepd, it means the explorer does not need to invest the 280 million necessary to bring Maria onstream.
The result from Lagavulin is likely to dominate the direction of the share price in the short term. Even in the event of a failure there is plenty more in the portfolio to excite the market in 2011 including the T-Rex prospect in the Norwegian Sea and North Uist and Fulla prospects in the Atlantic Margin.

This is a favourite of mine......one of these days : this will make a big find....if you notice : the percentages where they are involved in a well are getting bigger....and the artic seems to have plenty of untapped potential...one to watch, is this one ......

StockMarketWire.com
Faroe Petroleum says drilling has reached target depth on the Lagavulin exploration well (Faroe 10%), operated by Chevron, to the west of the Shetland Islands.

Well 217/15-1z, on the Lagavulin prospect was spudded in October 2010 and drilled in 1,567 metres water depth.

Total depth was reached on 10 June.

Hydrocarbons and a working petroleum system have been confirmed, however no workable reservoir system was found to be present at this location and the well will be plugged and abandoned.

Extensive data gathering has been undertaken in the well and detailed analysis is underway to fully evaluate the well results.

The well was drilled with the Stena Carron drillship.

Progress was slower than expected, principally due to a number of operational and technical challenges, notably poor weather conditions and variable drilling formation.

As a result of these delays, the cost of this well was greater than projected.

Opportunity to get in here....loads of wells to be spudded....

http://www.proactiveinvestors.co.uk/companies/news/29300/faroe-petroleum-says-drilling-completed-on-chevron-operated-lagavulin-well-29300.html

Bought some more....just had to....quite optimistic about this company's chances....

you're nuts especially in the present climate

There is not one oilies doing well in these recent months

SOLO are still holding up reasonable well (no pun intended).

Sp will come back bit by bit......

140p coming.

Perhaps but 220p will come also by this time next year....perhaps more...

Possibly bottomed out and now in recovery, though weakening oil price now a risk.

This could be a cracker if the current well hits oil......in the event of success : at least a pound would be added to the sp in my view !.

I forgot they were currently drilling. Not overly hopeful, but........

StockMarketWire.com (7/7/11)
Faroe Petroleum says drilling operations have started on the Fulla exploration prospect.

Faroe has a 50% interest in the prospect which is located in the west of Shetland area of the Atlantic margin.

The well, located to the north east of the producing Clair oil field, is targeting potentially oil-bearing Devonian Clair reservoir sands at a depth of 2,100 metres.

Faroe is operator of the well which is being drilled by the 'WilPhoenix' semi-submersible drilling rig under contract with Awilco Drilling in a water depth of 120 metres.

Operations are expected to be completed well within the summer weather period.

One well after another now and the 50% interest is a lot more than with previous wells and this trend is set to continue with the following ones as well. Before it was 10%, 20%....

Looks like they might have hit the jackpot.....!.....much more work to be done but very exciting times for FPM....

Fulla Oil Discovery, West of Shetlands
Faroe Petroleum plc, is pleased to announce an oil discovery in its first operated exploration well on the Fulla prospect in the west of Shetland (Faroe Petroleum 50% and operator).

Highlights
* The 206/5a-3 exploration well discovers oil in the Fulla prospect

* The well penetrated a gross oil column in the well of 133 feet and a net
oil column of 45 ft. Reservoir quality is better than expected.

* The oil has been sampled and details of the oil quality will be confirmed by
further analysis conducted in the onshore laboratory.

* Faroe's first operated exploration well has been successfully drilled in
accordance with UK's HSE guidelines.

Flow tests should be good.....giving the sp more impetus,.....surprising the lack of interest in this one....

not one i really follow, but i think i agree as am i not correct in thinking that they have an abnormally high strike rate?

Spot on !.....two out of three, perhaps even higher...2.5...have yet to work out the ratio but way better than most explorers, the number of successes is remarkable and this latest one with tests coming up might be their best yet.

Another one that looks very promising.....results from tests due any moment....

Another superb exploration result from this gem of a company......and more to come.....sooner or later the market will wake up to this little baby !.

amazing results this tiddler comes in with time and time again ...... for some reason, have never dabbled in it

StockMarketWire.com
Oil explorer Faroe Petroleum (LON:FPM) has discovered 50 metres of net oil pay with its Butch exploration well in the Norwegian North Sea.

The group, which has a 15% stake in the find, and its partners are set to drill an follow-up appraisal well to determine its full extent.

Preliminary results based on extensive coring, wireline logs and pressure data show that the well has encountered a light oil in good quality reservoir sands with a very high net to gross ratio. The entire reservoir section was found to be oil bearing and an oil water contact was not penetrated.

Extensive data have been collected, including the coring of the hydrocarbon bearing zone, and a full formation evaluation is underway.

In accordance with the success case contingency plan, the joint venture has decided to proceed immediately to drill a down-dip side-track to appraise for additional volumes of oil further down on the large salt-induced structure and to try to locate the oil water contact in Butch.

The company expects to be in a position to provide a further update from the planned side-track operation in the coming weeks.

The Butch discovery is situated in 66 metres water depth in the Norwegian North Sea, close to significant existing infrastructure with the giant Ula field approximately seven kilometres to the east, Tambar approximately 10 kilometres to the north east and Gyda approximately 20 kilometres to the north.

The other equity holders in this licence are Centrica 40% (operator), Suncor Norge AS 30% and Spring Energy Norway AS 15%.

This is a 200p to 300p stock, or should be....2 more exploration wells coming up before the end of the year.

In the short term I would expect another 20p to be added to the sp...but with this market and the volatility...you never know...

Directors piling in...91 and 87 shares bought...wow !...that'll set the markets alight !...

Another success for FPM with the "Butch" prospect......the number of positives from this company is incredible....and not many people interested.....

A breakout could be on the cards and another positive drilling result might at long last trigger a serious surge....about time too....

Macquarie raises Faroe Petroleum Plc price target to 245p from 230p

but be careful as this looks to be a very thin market

In up to my neck !.

Another well spudded.......very active this little gem.....undervalued.....

from memory. it's very illiquid, but certainly their strike record is very impressive

Slowly rising.....nice....decent graph improvement !.

Could be a superb update coming ........or part good update coming as quite a few things going on for this gem of an oil company !.....so many wells to be spudded....that a duster would not be disastrous....

Nice to see this up....remain convinced of a very well managed oil company that without any fuss is quietly developing positions around the shetlands,scotland, artic circle, norway......very...very...promising.....watch the percentages on wells increase as we go along !....Share mag tip plus IC tip as well....surprised that TW or EK have not spotted this one yet !.

.

Thanks Harrycat.....the graph looks good and is in the ascendancy....big update expected....soon....

although the graph is encouraging and their strike rate has until the last one, been very impressive, daily volume is <1m shares so tread carefully if taking the plunge

IG, and no doubt others, also think its a very high risk stock as 25% margin is demanded against only 5% for a blue chip or perhaps 10% for the likes of Tullow

That's for cfd's.....but it's worth it for this one ....

true, and of course no one would accuse you of ramping and shameless touting LOL!!

Quoi ?...moi ?....nonsense.....I've worked out that for TLW it has to go up or down by 8.5p for 1p in FPM....now given the difference with the margin...it's still worthwhile taking a punt on these.....terms and conditions apply...stocks and shares can go down as well as up...please sign here......euhhh.....just got carried away then.....

chuckle chuckle!
found myself more tempted for quick profit for much less margin by RBS and am glad to say my ravaged pot (sounds like an interesting euphemism!) is recovering very well

Quite a few positions myself....one in Tesco...hoping for a rebound....and hoping is all it seems to be for the moment....

Trickling up...nice....

StockMarketWire.com
Faroe Petroleum has revealed disappointing results from the Kalvklumpen exploration well which is being plugged and abandoned.

The 25/6-4 S Kalvklumpen well in the Norwegian North Sea spudded on 10 January and reached total depth of 2,738m within the Dunlin Formation.

The well targeted sandstones of the Palaeocene Hermod Formation and the Jurassic Brent Group and, whilst excellent reservoirs were confirmed in both targets, no hydrocarbons were encountered.

Faroe Petroleum - which has a 20% interest - said it has gathered considerable new data which will be used to de-risk other prospects in this prospective area where it owns several licences including the PL627 Shango, PL414B Oksen and PL507 Tetrao/Knorke licences.

The drilling operation was undertaken by Det Norske Oljeselskap as operator (40% participating interest), using the Songa Delta drilling rig.

Faroe Petroleum chief executive Graham Stewart said: "This is our first exploration well in this northern part of the Utsira High area, which has seen recent exploration success in the Atla discovery, located close to Faroe Petroleum's acreage.

"Whilst the results for the Kavlklumpen well are disappointing, the extensive data acquired will be now be applied to evaluate and de-risk further prospects within this and the adjacent licences held by the company in this prospective area."

looks like stay away time

Of course not...other wells on going....and for once they come up dry.....one day this will take off like a rocket.....

one day i'll die too

Let's be cheerful...(if possible)......I have quite a few of these and there is work going on at the tynosaurus rex well...(I think that's what they call it).....

nothing to prevent you dumping garbage and re-investing somewhere more likely to be profitable

Hey !....this share is not garbage.....just a bit of patience cinners.....more upside over the next year than downside.....look : a dry well and down 6p....now how may others would have a dry well and be down only by that amount ?....not many...

logic remains sound .... FPM is going nowhere except potentially south for at least some time to come

Not if this current well comes right.

i'ld rather hold pmo for north sea exposure, and just possibly xel

Results of the T-Rex and Bolan exploration well, Norwegian Sea

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, announces that oil was discovered on both the T-Rex and Bolan exploration prospects in the Norwegian Sea (Faroe 30%), on licence PL431 (blocks 6506/12, 6406/2&3 part), but not in commercial quantities.

they seem to have lost the magic touch as they had about 6 good strikes on the trot a year or so back .... glad i stayed clear of this one, as posted a few weeks back

Disappointing, but more wells to be spudded......not often this company does not come up with a good result !...still way undervalued regardless of today's rns...

Investec note:
"Faroe has announced that the 6406/3-9 well offshore Norway, targeting the T-Rex and Bolan prospects, has found oil, but in non-commercial qualities. The issue seems to be that the reservoir interval was thinner than expected.
The discovery of oil in the first well on this large area of the Halten terrace is encouraging, but clearly the company will have to do further work to pin down where a thicker and potentially commercial reservoir can be found.
Faroe has a 30% interest in the well and we estimate that the impact of the non commercial result is around 10p/share net to Faroe. We therefore cut our target price to 200p (from 210p), based on the core NAV (112p) plus the risked upside of the remaining exploration programme."

You see cinners how this one recovers quickly....

3p - golly gosh!! ..... did YOU notice how far and fast it plummeted?

I mean over a few days.....in the event of not such good news recovers quite well....

Starting to move quickly......something in the budget or dare I suggest : takeover rumours....

£3 billion pounds field allowance west of shetlands.....

North Uist exploration well commences West of Shetland
Faroe Petroleum is pleased to announce that drilling has commenced on the North Uist prospect, West of Shetland (Faroe 6.25%).

This deep water exploration well (Blocks 213/20b, 214/16b, 213/25C) is located near to Chevron's Rosebank oil discovery, also on the Corona Ridge, West of Shetlands. There are several reservoir objectives the most significant of which is North Uist at the Upper Jurassic level. Shallower in the section the well will also test the edge of the Cardhu prospect where sandstones of Paleocene age may be present.

To manage the high well costs in this region, Faroe has secured a financial carry of a portion of the well costs through farm-out arrangements.

The drilling operation will be undertaken by BP Exploration Operating Company Limited (47.5% interest) using the Stena Carron drilling rig. The other joint venture partners are CIECO Exploration and Production (UK) Limited (6.25%), Idemitsu Petroleum UK Ltd (5%) and Nexen Petroleum U.K. Limited (35%).

Good results here,.... by the look of it !.....making a profit...

i see no mention of a result but merely that drilling has commenced

StockMarketWire.com
Faroe Petroleum describes 2011 as a 'truly exceptional year of success' with a dramatic boost to production, proven reserves and cash flow.

Turnover for the year to the end of December increased more than five-fold to £80.2m while earnings before interest, tax, depreciation and amortisation jumped to £40.9m from £6.0m.

The company posts a pre-tax profit of £14.3m against a £26.0m loss in 2010.

Doing not too badly considering the market conditions at the moment.....3 exploration wells will be ongoing shortly, all at the same time !.

Norwegian Sea Cooper exploration well commences

Faroe Petroleum is pleased to announce that drilling has commenced on the Cooper prospect in the Norwegian Sea (Faroe 30%).

The exploration well will target the Cooper prospect located in PL477 in block 6506/11 on the Halten Terrace between the Smørbukk oil field, immediately to the east, and the Morvin oil field, to the west. Cooper consists of an untested north to south trending fault block. The main reservoir objectives are the prolific Middle Jurassic Garn and Ile formations, which are the main producing reservoirs in the neighbouring Smørbukk and Morvin fields.

The drilling operation will be operated by Centrica Resources (Norge) AS (40%) using the West Alpha drilling rig. The other joint venture partner is Suncor Energy Norge AS (30%).

Shares mag tip, today !...

Norwegian North Sea, Clapton exploration well commences

Faroe Petroleum is pleased to announce that drilling has commenced on the Clapton prospect in the Norwegian North Sea (Faroe 40% and operator).

Well 2/8-18 S is Faroe Petroleum's first operated well in Norway and will target the Clapton Prospect located in PL440 S in block 2/8, approximately 5 km east of the Eldfisk East Field and 10 km north of the Valhall Field.

Clapton is a chalk prospect on the flanks of the salt induced Mode Dome and the well will target the Ekofisk, Tor and Hod formations, which are the main producing reservoirs in the neighbouring fields.

The well will be drilled using the Maersk Guardian jack-up rig and the partnership consists of Dana Petroleum Norway AS (20%), Lundin Norway AS (18%), Norwegian Energy Company ASA (12%) and Det Norske Oljeselskap ASA (10%).

Another victory for ShareSoc following climb down on incentive plan
http://www.investorschampion.com/blog/entry/faroe-petroleom-another-victory-for-sharesoc

One to be in......partner percentages getting bigger....

Results of Clapton exploration well, Norwegian North Sea

Faroe Petroleum announces the results of the Clapton exploration well in the Norwegian North Sea (Faroe Petroleum 40% and operator).

The well was drilled to a vertical depth of 2,619 m below sea level and was terminated in the Cretaceous Hidra Formation. The primary target was encountered on prognosis, but the reservoir was thinner and of poorer quality than prognosed. The Shetland Group chalk reservoir contained no hydrocarbons of producible quantities. Oil shows were present in the Neogene section and in the upper part of the Ekofisk. Data acquisition and sampling has been carried out and the well will now be plugged and abandoned.

This well, which is Faroe Petroleum's first operated well in Norway, was drilled using the Maersk Guardian jack-up rig. The well came in on budget and was drilled safely without any serious incidents.

it's lost its magic touch

Preliminary Results from Cooper Well - Well Flow Test Results Awaited

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic Margin, the North Sea and Norway, announces the preliminary results of the 6506/11-9 S Cooper well in the Norwegian Sea (Faroe Petroleum 30%).

The well has been drilled to a total depth of 5,330m below sea level and encountered hydrocarbons in Middle Jurassic Garn formation. Based on preliminary results, from an extensive suite of coring, wire line logs, sampling and pressure data; the joint venture has decided to perform a drill stem test (DST) of the Garn formation to evaluate the likely productivity of the reservoir. The Company expects to be able to provide further information from the DST in the coming weeks.

Looks like a good result......depends on the flow now....

Faroe Petroleum plc acquires 12.5% interest in Barents Sea Licence PL531 containing the Darwin Prospect
Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, is pleased to announce that it has acquired a 12.5% interest in the Darwin prospect in PL531 in the Norwegian Barents Sea.

http://www.moneyam.com/action/news/showArticle?id=4431702

They certainly like the cold regions don't they ?.....blimey...the riggers will be drilling in minus 20 or 30 celsius below zero.......Darwin...now where have I heard that name before ?....

StockMarketWire.com
Faroe Petroleum has revealed disappointing drill stem test results on the Garn formation at the Cooper well in the Norwegian Sea.

Faroe - which has a 30% interest in the well - said primary target for the well was to prove up hydrocarbons in the Middle Jurassic Garn, Ile, Tofte and Tilje Formations.

The secondary target was to prove up hydrocarbons in the Cretaceous Lysing and Lange formations.

The well encountered oil in a 59 metres gross section within the Garn Formation and 10 metres within the Ile formation.

Extensive data acquisition and sampling has been carried out.

In addition oil was encountered in thin sand stringers within in the Cretaceous Lysing and Lange formations. A formation drill stem test has been performed on the Garn formation, however no hydrocarbons flowed to surface.

Several formation and pressure tests were also carried out and confirmed restricted flow within the reservoir, however no interpretation of potential fluid contacts was possible.

Faroe along with operator Centrica (40%) and Suncor (30%) will now evaluate these Jurassic and Cretaceous discoveries, together with the results from the DST and how this will impact the remaining licence potential.

Starting to recover.....always does, this one...

too illiquid for my taste

A drop of Chianti might help....

StockMarketWire.com
Independent oil and gas group Faroe Petroleum has revealed a six-fold jump in earnings after a significant increase in first half production.

Output averaged 8,581 barrels of oil equivalent per day in the six months to the end of June - up from 1,263 boepd a year ago.

Revenue rose to £90.6m (H1 2011: £40.1m, including sale of pre-completion oil inventory on Blane of £26.8) while earnings before interest, tax, depreciation and amortisation jumped to £62.8m from £10.1m.

Chief executive Graham Stewart said: "We have made good progress so far in 2012, resulting in a significant boost to production and cash flow.

"Our production has increased significantly following successful acquisitions of interests in four high quality, long life oil and gas fields in UK and Norway, most of which emanated from our ground-breaking swap deal with Petoro to monetise the significant Maria discovery.
Despite some disappointing results in our exploration programme during the first half, our success rate across the portfolio remains high. Faroe has an exciting drilling programme ahead with results from a further four exploration wells scheduled for the next six months, including the frontier Darwin well on the untested Veslemoy high in the western part of the Barents Sea expected to spud around year end. This is followed by an active schedule of exploration and appraisal wells over the next three years. Two wells are scheduled for next year to explore the south west and the east sides of the large salt structure where we made the significant Butch oil discovery, and we are also preparing plans to drill the exciting Novus prospect in Norway as operator in 2013."

StockMarketWire.com
Faroe Petroleum has agreed to acquire a 10% non-operated interest in the East Foinaven Field and a 0.5% interest in the West of Shetland Pipeline System from Marubeni Oil & Gas (North Sea).

The headline consideration for the acquisition of the interests - alculated from the effective date of 1 January 2012 - is $32m payable to Marubeni in cash.

The actual sum payable at completion will be reduced to take account of working capital adjustments for net income payable to the company from the sale of hydrocarbons from the field during the period.

The consideration is to be funded from the company's existing cash resources.

The acquisition is subject to joint venture partner consent and regulatory approval.

Rig Secured for Novus - Operated Licence (PL645)

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, is pleased to announce that it has contracted the West Navigator drill-ship to drill the Faroe operated Novus prospect in Norway in the second half of 2013.

This licence is located to the South West of the Heidrun field in the prolific Halten Terrace hydrocarbon province of the Norwegian Sea. The main targets for the well are the Jurassic reservoirs of the Garn, Ile, and Tilje formations.

The Novus prospect was awarded to Faroe as part of the APA 2011 Licensing Round announced in January of this year. The licence group consists of Faroe Petroleum as operator (50%), CentricaResources (Norge) AS (40%) and Skagen 44 AS (10%).

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

"We are very pleased to announce the securing of a rig to drill the Novus prospect, which will be the second Faroe Petroleum operated well on the Norwegian Continental Shelf". The Novus prospect was identified and mapped by Faroe Petroleum for the 2011 APA licence round and lies in the prolific Halten Terrace hydrocarbon province of the Norwegian Sea."

"In the meantime Faroe is participating in four further exploration wells scheduled to be drilled in the next six months in both UK and Norwegian waters."

StockMarketWire.com
Faroe Petroleum has confirmed the spudding of the Spaniards East exploration well in the UK central North Sea. The Spaniards East prospect is located on Block 15/21a, to the south of the Perth field (Faroe 34.62%) and close to the producing Scott field in the central North Sea.

The well, which is targeting Upper Jurassic reservoirs, is expected to take approximately 40 days.

The Spaniards East well spudded on 14 October by the Will Phoenix semi-submersible drilling rig.

The drilling operations are being undertaken by Premier Oil as operator.

The other joint venture partners are Serica Energy, Cairn Energy, Parkmead, Maersk Oil and Atlantic Petroleum.

Faroe Petroleum has a free-carried interest of 8.4% in the Spaniards East well and will not be required to make any cash contribution to the dry-hole cost of this first well.

Perhaps...we might get a success here...like Cinners said :...they seemed to have lost that magic touch of theirs as of late.......with all the wells they are spudding : their luck has to change sooner or later...

StockMarketWire.com
Faroe Petroleum has provisionally been awarded seven new exploration licences on the UK Continental Shelf in the UK's 27th Offshore Licensing Round.

These are: * Grouse Extension (Blocks 217/14 & 217/15) - Faroe Petroleum 37.5% and operator This west of Shetland traditional licence is located in the North of the Faroe-Shetland Basin. The blocks contain the extension of the Company's existing Grouse prospect, a large structural and stratigraphic trap within post⬐basalt strata, in a new exciting exploration play in the west of Shetland area. The licence work programme for the Grouse Extension is to be confirmed but it is anticipated that it will tie in with the programme for the existing Grouse licence.

* Glenfarclas (Blocks 208/21 (part), 208/26 & 214/30d) - Faroe Petroleum 33.34% and operator This west of Shetland traditional licence is situated on the south-eastern flank of the Faroe-Shetland Basin to the North of the Glenlivet gas discovery in which Faroe Petroleum has a 10% interest. The Glenfarclas Prospect is a large structural and stratigraphic trap of Palaeocene age, and exhibits an amplitude anomaly. The licence work programme for Glenfarclas involves reprocessing 3D seismic data and additional geotechnical studies, prior to making a drill or drop decision.

* Dunvegan (Blocks 205/16b (part), 205/17 (part), 205/21c & 205/22b) - Faroe Petroleum 50% and operator This west of Shetland traditional licence is situated at the southern end of the Faroe-Shetland Basin. Dunvegan and the associated leads are combined structural and stratigraphic traps within Lower Cretaceous strata, associated with strong seismic amplitudes and located within a regional three-way closed structure. The licence work programme for Dunvegan involves shooting new long offset 2D seismic data and additional geotechnical studies, prior to making a drill or drop decision.

* Ribbon (Block 206/7b) - Faroe Petroleum 50% This west of Shetland traditional licence, to be operated by E.ON E&P UK Limited, is situated on the eastern flank of the Faroe-Shetland Basin, adjacent to the Clair oil field. Prospectivity has been identified within both Palaeocene and Cretaceous strata. The licence work programme involves reprocessing 3D seismic data and additional geotechnical studies, prior to making a drill or drop decision. * Blocks 29/12 (part), 29/13 (part) & 29/14 - Faroe Petroleum 33.33% This Central North Sea traditional licence, to be operated by Endeavour Energy (U.K.) Limited, is located on the southern margin of the Central Graben. A number of leads have been identified at both Palaeocene and Jurassic levels. The licence work programme involves obtaining and reprocessing 2D seismic data and additional geotechnical studies, prior to making a drill or drop decision.

* Greater Perth Area Block 15/16e - Faroe Petroleum 33.33% This traditional licence, to be operated by DEO Petroleum Exploration Limited, is located in the Outer Moray Firth, north-east of the Perth oil field, in which the partners hold an interest. Prospectivity has been identified within Upper Jurassic strata and is to be de-risked through a work programme comprised of obtaining and reprocessing 3D seismic data, in addition to other geotechnical studies, prior to making a drill or drop decision. * Blocks 3/28c & 9/3e - Faroe Petroleum 50% This traditional licence, to be operated by RWE Dea UK SNS Limited, is located on the western edge of the Northern North Sea Viking Graben to the north of the BP operated Bruce field. Prospectivity has been identified within the Palaeocene section in an exciting new play concept for the area. The licence work programme involves reprocessing of 3D seismic data and additional geotechnical studies, prior to making a drill or drop decision.

You get the feeling that Faroe petroleum will be taken over at some stage...just the sort of company Statoil or Premier would snap up .....

Keeps on drifting higher.....great powers of recovery... this sp....

StockMarketWire.com
Faroe Petroleum intends to cease operations on the P1161 licence (Freya and Fulla), west of Shetland.

Faroe Petroleum is the operator and holds a 50% interest.

The company drilled an exploration well (206/5a-3) on the Fulla prospect in July 2011 and the targeted Clair and Whiting reservoir sands were found to be oil-bearing.

Extensive modelling has since been undertaken to establish the resource potential and assess a means of economically developing the Fulla discovery in conjunction with the 1980 Freya discovery, located immediately to the south in the adjoining Block 206/10a.

The results of this work confirm relatively poor oil quality, smaller than expected resource size and limited access to infrastructure.

No economically viable solution has been found to bring these discoveries to development at this time, and consequently the licence will be relinquished.

Drop followed by recovery as this company has so many assets plus ongoing drilling...

about a year ago or maybe a bit more, FPM had an enviable track record for strike % ..... it has now lost that sheen big time .... at least for now, the future is not even orange!

Buy the shares Cynic.....you will notice that they have many assets and a very agressive drilling program...and bad news does not make the sp plummet by very much...it always rebounds....

no thank you

But you will later if you buy them now...

i'm happy enough with the balance of quality and crap that i already have .... i don't need more of the latter

I have to say that I also have quite a few shares in negative territory and I'm waiting (or hoping) for an expected recovery perhaps next year .....this one will rise sooner or later and might be bought out...

so might GOO or BIOM!

Faroe is a little better than those other two.....crikey Biom formerly Stanelco....whatever happened to Tweenie over there ?....I got squelched by her on that thread....and she disappeared never to be seen again....

StockMarketWire.com
Canaccord Genuity has downgraded its recommendation on independent oil and gas company Faroe Petroleum (LON:FPM) as the company exited two finds due to their economic viability. The City broker has reduced its share price target by 26 per cent to 170 pence (from 230 pence). Analyst Charlie Sharp said: "Faroe has decided to relinquish its interest in the Fulla and Freya fields to the west of the Shetland Islands. The relinquishment of its 50% operated interest comes as something of a surprise, but detailed assessment of the two finds indicated to the company that no economically viable development is possible. Specifically, Fulla has higher quality oil but is quite small, while the larger Freya has much lower quality oil and a more 'difficult' reservoir. The combination looks unappealing to Faroe."

Results of Spaniards exploration well

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, announces the results of the Spaniards East exploration well (Faroe 8.4% - free carried).

The Spaniards East well was drilled in UK block 15/21, reached a total depth of 10,694 feet and encountered 75 feet of Jurassic sands which were water wet. The well is now being plugged and abandoned.

The drilling operations were undertaken by Premier Oil as operator.

Faroe Petroleum had a free-carried interest of 8.4% in the well (carried by Premier, Cairn and Serica) and was not required to make any cash contribution to the dry-hole cost of this well.

Rodriguez exploration well commences in the Norwegian Sea

Faroe Petroleum is pleased to announce the spudding of the Rodriguez exploration well (6407/1-6S) (Faroe 30%).

The Rodriguez prospect is located in the APA 2007 license PL475 on the Halten Terrace in the Norwegian Sea four kilometres north-east of the Tyrihans field and eight kilometres south-east of the Maria discovery (made by Faroe in 2010). The main objective for this well is to test for oil in the middle Jurassic sandstones of the Garn, Ile and Tilje formations. The water depth is 291 metres and the well is planned to be drilled to approximately 4,040 metres with a total depth within the Tilje Formation.

The drilling operations are scheduled to last approximately 75 days, undertaken by operator Wintershall Norge AS (50%) utilising the Transocean Arctic rig. Centrica Resources (Norge) AS is the third partner (20%) in the joint venture.

StockMarketWire.com
Faroe Petroleum's full year production was within the range of management forecasts despite the unscheduled down time on the Njord, Brage and Blane fields in the fourth quarter.

On the Njord field re-instatement of production following a planned shutdown was delayed by an accident involving the third party mobile accommodation unit, the Floatel Superior.

The Blane field was also down for nearly 10 weeks in late 2012, while repairs were undertaken after a gas leak had been detected on the Ula platform to which it ties back.

Production was temporarily affected on Brage due to gas processing and export limitations. All fields are now back on production and first oil from the Hyme field is expected in the first quarter of this year.

The combined Group production from our five principal fields (Brage, Ringhorne East, Njord, Blane, Schooner) and the new additions (Hyme and East Foinaven) is expected to average between 7,000 and 9,000 barrels of oil equivalent per day in 2013.

Confirmed discovery at the secondary target from the Rodriguez exploration well
Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, is pleased to announce that further results from the Rodriguez exploration well in PL475 (6407/1-6S) (Faroe 30%) have confirmed a significant gas condensate discovery in the Lower Cretaceous interval.

On 16 January 2013, the Company announced that hydrocarbons may be present in the well's secondary target, the shallower Lower Cretaceous intervals, where samples had been acquired and were the subject of further analysis. The Operator has now confirmed the discovery of moveable hydrocarbons in these sandstone layers in the Lange formation, which contain an estimated gas condensate column of nine metres net pay and where it is interpreted that we have penetrated the reservoir at the edge of its lateral extent. The Operator's preliminary volumetric estimates of the size of the discovery are between 19 and 126 million barrels of recoverable oil equivalent (net to Faroe c.6 - 38mmboe). This is the first exploration well drilled on the Rodriguez license PL475 and further appraisal will be required to establish the lateral extent and size of this discovery.

Faroe Petroleum already has the Fogelberg gas discovery in the Norwegian Sea, which is being matured towards a development decision to coincide with gas export capacity becoming available in the Norwegian pipeline system in a few years time. In this context, it is noted that the Norwegian Authorities have recently proposed a significant reduction in gas transportation tariffs for new gas field developments. This proposal is now in a consultation process, to be completed by 15 March 2013. If introduced, this change to tariffs would significantly improve project economics both of Fogelberg and this new gas condensate discovery.

Good news I would have thought - so why is the SP down??!!

'Cos the whole market is slightly down this morning. Sp hit 151p at it's height today. Just have to wait now for broker upgrade.

Cheers HARRYCAT

A good strong surge through the 200 DMA would be appreciated!

Project update

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, is pleased to provide a project update and announce that it is hosting a site visit for sell-side investment analysts this week in Stavanger, Norway.

Hyme Oil Field (Norwegian Sea) - production commences (Faroe 7.5%)

Production has commenced on the Statoil operated Hyme oil field in the southern part of the Norwegian Sea. This field ties back to the Njord A platform, which is located 19 kilometres away, in which Faroe also holds a 7.5% interest.

The Hyme field was discovered in June 2009 and has been developed through a dual-lateral production well and a water injection well, drilled through a sub-sea template. The installation of five new risers and modifications to the Njord A platform to receive Hyme production also formed part of the development. The operator estimates that the Hyme field contains approximately 30 million barrels of oil equivalent (mmboe) (net to Faroe 2.25 mmboe), predominantly oil, and expects the field to extend the production life of the Njord field to beyond 2020.

First oil has taken just over two years from the development decision and has been delivered on schedule and on budget of approximately NOK 4.5 billion (Faroe net share approximately £37.5m). Faroe has funded its share of the development costs from cash flow generated from its producing interests. It is expected that the field will generate between 10-15% of the Company's estimated 2013 daily production.


The partners in the Hyme development are Core Energy AS (17.5%), VNG Norge AS (2.5%), E.ON Ruhrgas Norge AS (17.5%), GDF Suez E&P Norge AS (20%) and Statoil Petroleum AS (35% and operator).


Darwin exploration well (Norwegian Barents Sea) - rig on contract (Faroe 12.5%) for near-term spud

The Aker Barents semi-submersible drilling rig is now on contract and the spudding of the high impact wildcat Darwin exploration well (7218/11-1) (Faroe 12.5%), acquired from Talisman Energy Norge AS in August 2012, is expected shortly.

The Darwin prospect is located on the Veslemøy High in the frontier western part of the Barents Sea approximately 60 to 80 kilometres to the south west of the recent significant Statoil Skrugard and Havis oil discoveries. Multiple targets have been identified on 3D seismic and this well will test the main Darwin prospect and contribute towards further de-risking of the large upside potential in the remainder of the licence area.

The drilling operations are being operated by Repsol Exploration Norge AS (20%) and the other joint venture partners are Talisman Energy Norge AS (12.5%), Marathon Oil Norge AS (10%), RWE Dea Norge AS (15%), Det norske oljeselskap ASA (10%) and Concedo ASA (20%).

Norwegian and UK Asset Acquisitions
Faroe Petroleum is pleased to announce that it has acquired a 25% interest in the Pil prospect in the Norwegian Sea and a 50% interest in the Lowlander discovery in the UK Central North Sea.

Licence PL586, Pil Prospect (Norwegian Sea) - acquisition (Faroe 25%)
The Pil prospect is located within tie-back distance (33 kilometres) to the producing Njord field in which the Company holds a 7.5% interest. The prospect is a combined structural and stratigraphic closure and the primary target is at the shallower upper Jurassic Rogn formation sandstone which has proved to be an effective reservoir in the producing Draugen field located 60 kilometres to the north east.

This exploration well is scheduled to be drilled in the first half of 2014 using the Transocean Arctic drilling rig. Faroe Petroleum has acquired this interest from the operator VNG and the acquisition is subject to approval by the Ministry of Petroleum and Energy in Norway.

Lowlander (UK Central North Sea) - acquisition (Faroe 50%)
The Company has entered into an agreement with Talisman Sinopec to acquire a 50% interest in UK Licence P.324, block 14/20c containing the Lowlander oil discovery.

Lowlander was discovered in 1987 by the 14/20b-17 well (drilled by Texaco) and represents an Upper Jurassic Piper sand oil accumulation located in the Central North Sea, approximately 200 kilometres north east of Aberdeen. Lowlander was fully appraised by subsequent wells and the field has sour characteristics, similar to those of the Perth Field (Faroe 34.62%), which is located 16 kilometres from Lowlander. The work programme will include a joint Perth/Lowlander development study.

The acquisition is subject to approval by the Department of Energy and Climate Change.

Darwin exploration well commences in the Norwegian Barents Sea

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, is pleased to announce the spudding of the Darwin exploration well (7218/11-1) (Faroe 12.5%).

The Darwin prospect is located on the Veslemøy High in the frontier western part of the Barents Sea approximately 60 to 80 kilometres to the south west of the recent significant Statoil Skrugard and Havis oil discoveries. Multiple targets have been identified on 3D seismic and this well will test the main Darwin prospect and contribute towards further de-risking of the large upside potential in the remainder of the licence area.

The drilling operations are being operated by Repsol Exploration Norge AS (20%) utilising the Transocean Barents semi-submersible drilling rig. The other joint venture partners are Talisman Energy Norge AS (12.5%), Marathon Oil Norge AS (10%), RWE Dea Norge AS (15%), Det norske oljeselskap ASA (10%) and Concedo ASA (20%).

Graham Stewart, Chief Executive of Faroe Petroleum, commented:
"We are very pleased to announce the spudding of this high impact wildcat well which is our first in the highly prospective Barents Sea. This well is located in the promising western part of the Barents Sea - an area where a major breakthrough was achieved in 2011 with the giant Skrugard oil discovery.

"We have an active 2013 exploration drilling programme which includes several high impact exploration wells including Novus (Norwegian Sea) and two Butch wells (Norwegian North Sea)."

Notice of Preliminary Results
Faroe Petroleum will announce its preliminary results for the year ended 31 December 2012, on Tuesday 26 March 2013.

StockMarketWire.com
Faroe Petroleum's turnover nearly doubled to £158.8m in the year to the end of December - up from £80.2m in 2011.

Faroe said this reflected, in particular, the full year effect of acquisitions made in 2011 of the Brage, Njord, Ringhorne East and Jotun fields in Norway, and continuing high oil prices.

Cost of sales, including depreciation of producing assets, was £97.0m (2011: £52.2m), giving a gross profit for the year of £61.8m (2011: £28.0 million) - a significant increase from previous years.

EBITDAX for the year more than doubled to £96.0m (2011: £40.9m).

Exploration expenditure for the year was £79.7m (2011: £42.3m). This included pre-award exploration expenditure (£8.6m) and write-offs of licence specific exploration and evaluation expenditure on previously capitalised licences where active exploration has now ceased (£71.1m).

The pre-award exploration expenditure included costs incurred in licence rounds. The licences which were relinquished and written off during the year included T-Rex, Clapton and Fulla/Freya together with other smaller write-offs over several exploration assets.

The group's reported loss before tax was £29.0m (2011: £14.3m profit).

The loss after tax was £5.2m (2011 profit: £47.4 m due principally to the exceptional gain of £40.0m on the disposal of Maria).

StockMarketWire.com
Faroe Petroleum has confirmed that the North Uist frontier exploration well, west of Shetland, is being plugged and abandoned, as planned.

The 213/25c-1V exploration well targeted several reservoir objectives, the most significant of which was the North Uist prospect.

The well reached a total vertical depth of 4,700 metres and encountered gas condensate in sandstone reservoirs in the target section. An extensive data set has been collected, including wire-line logs, pressure data and side-wall cores.

A full formation and volume evaluation is under way but preliminary results indicate varying reservoir quality and the commercial potential has yet to be evaluated.

The shallower Cardhu prospect encountered traces of hydrocarbons. This deep water frontier exploration well (Blocks 213/20b, 214/16b, 213/25c) is located near to Chevron's Rosebank oil discovery, also on the Corona Ridge, west of the Shetland Islands.

To manage the typically higher well costs in this region, Faroe secured a financial carry of a portion of the well costs through farm-out arrangements and a relatively low retained licence equity. The drilling operation has been undertaken by BP Exploration Operating Company Limited using the Stena Carron drill-ship. The well will now be plugged and abandoned, as planned.

Faroe Petroleum chief executive Graham Stewart said: "After a long period of drilling activity on this wild-cat exploration well, we are pleased to have made a discovery in the North Uist exploration well, although we had however hoped for better quality reservoir.

"The result proves another working hydrocarbon system in the frontier west of Shetlands which is good news for further prospectivity in these UK waters.

"The partnership will now undertake extensive analysis of the considerable volumes of data and samples collected from the well operations before deciding on the next steps."

Results of the Darwin wild-cat exploration well, Barents Sea, Norway

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, announces the results of the Darwin frontier exploration well (7218/11-1) (Faroe 12.5%).

The objectives of the well, which is the first to be drilled in this Norwegian Barents Sea licence, were to prove hydrocarbons in the Paleocene and Upper Cretaceous reservoirs. Gas shows were recorded in the Paleocene interval although no hydrocarbons were found in the Cretaceous and accordingly the well has been declared dry. An extensive data set has been collected, including wire-line logs, pressure data and side-wall cores and a full formation evaluation is underway.

The Darwin prospect is located on the Veslemøy High in the frontier western part of the Barents Sea approximately 60 to 80 kilometres to the south west of the recent significant Statoil Skrugard and Havis oil discoveries. The well was drilled to a total depth of 2,542 metres in the Lower Cretaceous. The well will now be permanently plugged and abandoned.

The drilling operations have been undertaken by Repsol Exploration Norge AS (20%) utilising the Transocean Barents semi-submersible drilling rig. The other joint venture partners are Talisman Energy Norge AS (12.5%), Marathon Oil Norge AS (10%), RWE Dea Norge AS (15%), Det norske oljeselskap ASA (10%) and Concedo ASA (20%).


Graham Stewart, Chief Executive of Faroe Petroleum, commented:
"We are pleased that this frontier well proved the existence of a working hydrocarbon system in the licence area. It is disappointing that no hydrocarbons were present in the Cretaceous section at this location, however it does provide important new data and information which will allow further evaluation and de-risking of this extensive licence in the Barents Sea province in which Faroe has a strategic position.

Faroe Petroleum is pleased to announce the 22nd Norwegian Licence Round award of a new licence PL716 in the Barents Sea.

The Dazzler prospect contained within PL716 (Faroe 20%) is located 90 kilometres to the north west of the recent Skrugard and Havis oil discoveries and lie in approximately 450 metres of water. The main prospect is positioned on the southern flank of the Stappen High adjacent to the Bjørnøya Basin and consists of a large horst structure, which is well defined by recently acquired 3D seismic and has significant volumetric potential.

The work programme consists of drilling of one firm well with a target depth of the shallower of: i) 50m into the Triassic Snadd formation, or ii) 3,500 metres. The licence which is contained within Blocks 7318/11 & 12 is operated by Eni Norway AS (40%) and the other partners are Bayerngas Norge AS (20%) and Petoro AS (20%).

Graham Stewart, Chief Executive of Faroe, commented:

"Faroe Petroleum is very pleased to have been awarded this prospective exploration licence in the Norwegian 22nd licensing round announced yesterday which further enhances our strategic position in the Barents Sea. We are also pleased to be working again with Eni as operator which has had such success in the Barents Sea.

"This licence delivers a further well to our high impact Norwegian drilling campaign, and we look forward to the commencement of the Snilehorn (Norwegian Sea), Novus (Norwegian Sea) and Butch wells (Norwegian North Sea) in the second half of 2013. "

Operational Update
Faroe Petroleum is pleased to provide an operational update. The Company has a material and active investment programme ahead, which is fully funded from existing cash flow, cash reserves and debt facilities.

Highlights
Exploration - high impact, near term, six well exploration drilling programme commencing in H2 2013:
· Snilehorn (Faroe 7.5%)
· Novus (Faroe 50% and operator)
· Butch East and Butch South West (Faroe 15%)
· Solberg (Faroe 30%)
· Pil (Faroe 25%)

Production and development - strong and stable
· Total average economic production for the year to 31 May 2013 was approximately 8,100* boepd
· Faroe to acquire further equity in Brage Sognefjord
· Development of Orca gas field underway (Faroe 3.24%)
· Infill wells on Schooner (Faroe 6.9%), Brage (Faroe 14.26%) and Njord (Faroe 7.5%)

http://www.moneyam.com/action/news/showArticle?id=4621152

Notice of Interim Results

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, will announce its interim results for the six months ended 30 June 2013, on Thursday 26 September 2013.

StockMarketWire.com
Faroe Petroleum has completed the previously announced acquisition of a 10% non-operated interest in the BP-operated East Foinaven oil field and a 0.5% interest in the West of Shetland Pipeline System, both from Marubeni Oil & Gas (North Sea).

The net consideration payable for the acquisition of the interests, after adjusting for net income receivable by the company from the sale of hydrocarbons from the field during the period, has been reduced to approximately $22.5m which is to be funded from the company's existing cash resources.

Numis target of 147p looks to be achievable any time soon!

Looks good Harry.

StockMarketWire.com
Faroe Petroleum expects full year production to be at the lower end of end of the 7,000 to 9,000 barrels of oil equivalent per day forecast.

The company says this is after taking into account the natural decline of the fields, deferral of some elements of the capital work programme and an increased allowance for both planned and unplanned shutdowns.

Average economic production for the first half of 2013 was 7,890 boepd.

It says that the 2013 field capital programme comprises a number of elements: infill drilling of Schooner, Njord and Brage in addition to bringing the Hyme and Orca fields to first production.

It adds: "Whilst progress on Hyme and Orca has been ahead of expectations, with Hyme first oil achieved in February 2013, slippage on the drilling schedules of all three infill programmes has deferred some potential production volumes into 2014."

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, is pleased to announce the spudding of the Statoil-operated Snilehorn exploration well 6407/8-6 (Faroe 7.5%).

The Snilehorn prospect is located four kilometres from the Hyme producing oil field (Faroe 7.5%) in the Norwegian Sea. Hyme produces into the Njord field facilities (Faroe also 7.5%).

The well and a planned side-track will target oil and gas in the Jurassic Ile, Tilje and Åre Formations (analogous to the Hyme reservoir) and, if successful, the plan is to fast-track a development along similar lines to the Hyme development. The water depth is 282 metres and the well is planned to be drilled to a total depth of approximately 3,205 metres. The drilling operations are being undertaken by Statoil (50%) utilising the Songa Trym rig.

Graham Stewart, Chief Executive, Faroe Petroleum commented:

"We are pleased to announce the spudding of the Snilehorn exploration well, the first of our six well programme which, if successful, offers an opportunity to add new production at a low cost through a fast-track tie-back to the nearby Hyme field in which Faroe also participates with 7.5%.

"We now look forward to one of our most exciting periods ahead, with a long programme of fully-funded high impact exploration and appraisal wells planned, in which we have material equity stakes. The programme commences with the Snilehorn welland has the potential to generate considerable shareholder value."

StockMarketWire.com

Faroe Petroleum's revenues slipped to £89.0m in the six months to the end of June - down from £90.6m last time.

Profit after tax rose to £12.2m (1H 2012: £3.7m) - after exploration write-offs of £13.6m (1H 2012: £51.3m) but EBITDAX at £56.9m was down from £62.8m.

Chief executive Graham Stewart said: "2013 is proving to be an extremely active year for Faroe. We have completed three exploration wells, and have recently commenced drilling on the first of six wells to be drilled over the coming period - all located close to existing producing fields and infrastructure.

"The year started on a high with a gas condensate discovery at Rodriguez in good quality reservoir and the follow-up Solberg appraisal well is already planned for January 2014.

"We are excited about the two back-to-back Butch wells (Faroe 15%) which will explore the south west and east sides of the large salt structure where we made the significant Butch main oil discovery in 2011, together with our operated Novus well on the Halten Terrace in Norway (Faroe 30%). Our focus on frontier exploration continues and we have further strengthened our strategic position in the Barents Sea with a licence award in the 22nd Norwegian round, in strong competition with many other companies.

"The licence, operated by Eni as one of the most successful explorers in the Barents Sea, has a firm well commitment on the Dazzler prospect, likely to be drilled in 2015, enhancing our high impact Norwegian drilling programme."

StockMarketWire.com
The start-up of the Njord and Hyme fields has been delayed until the second quarter of next year, Faroe Petroleum has been informed by operator Statoil.

Faroe said Statoil announced the delay - which is to allow additional time to plan and undertake remedial works following a structural review - at a management committee meeting this morning (26 September).

Faroe says further information will be provided following the next management committee meeting, which is currently expected next week.

StockMarketWire.com
Westhouse Securities has upgraded its recommendation on Faroe Petroleum (LON:FPM) to "buy" from "neutral" believing the current share price offers a good entry point, especially when the company is about to embark on a busy and fully-funded exploration drilling programme. The broker specifically highlights the drilling in the Butch area and the Novus prospect as material share price catalysts. Analysts have therefore increased their price target to 175 pence per share from 162 pence. The broker said: Investing in exploration requires an understanding of its binary nature and its ability to create and erode value relatively quickly. "As an explorer, we believe Faroe covers all the bases: it is fully funded, has a P&D base to limit downside and the company's upcoming drilling programme is focused on near-field exploration with relatively easy follow-on development options (and hence potential monetisation options).

StockMarketWire.com
Analysts at finnCap have downgraded their recommendation on Faroe Petroleum (LON:FPM) to "hold" from "buy" in their monthly E&P research note, today, citing the limited implied upside to their new target price as the rationale behind their change of stance. The broker said: 'The Faroe share price has recovered much of the lost ground triggered by disappointing news flow in September and now stands just 8% below our target price. As a result, we downgrade our recommendation to Hold and believe positive drilling results must be delivered for the share price to move significantly higher from these levels. Analysts have increased their price target by 3.7 per cent to 140 pence per share (previously 135 pence).'

StockMarketWire.com
Faroe Petroleum has spudded the Novus (PL645) well no. 6507/10-2S offshore Norway. The Novus prospect is located some nine kilometres to the south of the Statoil-operated, producing Heidrun oil field in the prolific Halten Terrace hydrocarbon province of the Norwegian Sea.

This is an area in which Faroe has built a strong position over several years, and has had considerable exploration success, including the significant Maria, Fogelberg and Rodriguez discoveries.

Chief executive Graham Stewart said: "We are pleased to announce the spudding of the Faroe-operated Novus exploration well on the prolific Norwegian Sea Halten Terrace, an area where we have a large strategic position and have had considerable success. "This is the second well in our six well exploration programme; one of our most exciting to date which was recently kicked off with the Snilehorn well, where we announced a significant oil discovery this morning. With material equity stakes across the prolific North Sea, Norwegian Sea and Barents Sea in Norway, we have the real potential to generate considerable shareholder value

StockMarketWire.com
Faroe Petroleum has confirmed an oil discovery in well 6407/8-6 and sidetrack 6407/8-6A on the Snilehorn prospect in the Norwegian Sea (Faroe 7.5%).

The well, which spudded on 18 September, was targeting oil and gas in the Jurassic Ile, Tilje and �&re formations (analogous to the Hyme oil field reservoirs). The main bore (6407/8-6) encountered oil columns of approximately 40 metres thickness in the Ile formation, 130 metres in the Tilje formation and in addition approximately 21 metres in the Triassic Grey-Beds formation.

Oil-down-to situations were encountered in all three formations in the main bore.

The sidetrack (6407/8-6A) encountered oil columns of approximately 6 metres thickness in the Melke formation, 75 metres in the Ile formation and 43 metres in the Tilje formation.

In the sidetrack, oil-down-to situations were encountered in the Melke and Ile formations. The oil-bearing Triassic interval found in the main bore was not encountered in the sidetrack. Pressure data indicates communication between the main bore and the sidetrack and the reservoir properties are as expected.

StockMarketWire.com
Faroe Petroleum has acquired the remaining 50% interest in the Lowlander oil discovery in the UK Central North Sea and now owns the entire 100% interest in the undeveloped oil field.

The company has entered into an agreement with North Sea Ventures Limited to acquire its 50% interest in UK Licence P.324, block 14/20c containing the Lowlander oil discovery. This acquisition follows completion of Faroe's purchase of the initial 50% interest in the Lowlander discovery, acquired from Talisman Sinopec in February 2013.

Njord Update
Faroe Petroleum provides an update on the status of the Njord production facility (Faroe 7.5%).

As previously announced on 26 September 2013, the Njord operator Statoil has been carrying out a detailed analysis of the platform's structural integrity. The preliminary results from this numerical analysis led to the temporary shut down of both production and drilling to allow for the deck structure to be reinforced. The work on this project has commenced and the operator's expectation is that this will be completed in Q2 2014, and the Njord facility will then be brought back on production.

Significant oil and gas resources remain in the Njord field and surrounding catchment area with potential for over 20 years of remaining production. These resources include the developed volumes which can be produced from the existing wells on Njord and Hyme, further infill drilling in the Njord field, development of the North West Flank gas and condensate accumulations and development of the newly announced Snilehorn oil discovery. There is also significant additional prospectivity that may be matured towards exploration drilling in the coming years along with undeveloped third party discoveries in the catchment area.

On this basis, the Njord partnership is evaluating a number of scenarios for the long term further development of Njord and the accumulations in the surrounding area, which range from:

- continuing production with the Njord A facility following the current deck reinforcement project and identifying alternative means of continuing development drilling on Njord

- bringing the Njord A facility to shore at an optimal time for further strengthening of the structure or replacing the hull

- potentially building a new Njord A platform or FPSO

The objective of this ongoing scenario evaluation work is to identify a robust plan for the long term development of the hydrocarbon resources in the Njord area in order to create maximum value and reserves exploitation. This scenario evaluation work is expected to reach its conclusion towards the end of 2014.

StockMarketWire.com
Faroe Petroleum has confirmed the spudding of the Centrica-operated Butch East exploration well 8/10-5S, the first of two back-to back-wells in licence PL405/P.

Butch East, which is adjacent to Faroe's 2011 Butch discovery, is situated in approximately 65 metres water depth in the Norwegian North Sea, close to significant existing infrastructure with the giant Ula field approximately seven kilometres to the north-west, Tambar approximately 10 kilometres to the south-west and Gyda approximately 20 kilometres to the south.

The Centrica operated Butch Main discovery (Faroe 15%) was made in late 2011 and contains a significant presence of light crude oil in the Upper Jurassic reservoir of the Ula formation. Since the main Butch discovery was made, licence operator Centrica Energy Norway has acquired new high quality seismic data, which has been applied in the planning of two further exploration wells on the untested eastern and south⬐western sides of the large central Butch salt structure.

The operator is currently working on a development plan for the Butch Main discovery, in parallel with drilling the Butch East and Butch South West wells. The Butch licence drilling operations are operated by Centrica (40%) using the Maersk Giant jack-up drilling rig, together with the other joint venture partners Suncor Norge AS 30% and Tullow Oil Norge AS 15%. Faroe Petroleum chief executive Graham Stewart said: "We are pleased to announce the spudding of the Butch East exploration well, which is the first of two back-to-back wells following on from the 2011 discovery on the Butch licence. If successful, Butch East offers the potential to substantially add to the value of the Butch field.

"Butch East is the third well to spud in our near-term six well exploration programme. This exciting exploration campaign commenced with the significant Snilehorn discovery announced last month, and continues with the Novus well, currently drilling, close to the producing Heidrun oil field. Following these wells, we also look forward to the drilling of the Solberg and Pil prospects, both in the Norwegian Sea.

"With material equity stakes held in a portfolio of excellent quality licences across the prolific North Sea, Norwegian Sea and Norwegian Barents Sea, Faroe Petroleum has the real potential to generate considerable shareholder value through our sustained programme of exploration and appraisal drilling."

Pil exploration well commences in the Norwegian Sea
Faroe Petroleum is pleased to announce the spudding of the VNG-operated Pil exploration well 6406/12-3S (Faroe 25%).

The Pil prospect (Licence PL 586) is located within tie-back distance (33 kilometres) to the Njord platform in which the Company holds a 7.5% interest. The prospect is a combined structural and stratigraphic closure and the primary target is at the shallower upper Jurassic Rogn formation sandstone which has proved to be an effective reservoir in the producing Draugen field, located 60 kilometres to the north east.

The Pil licence drilling operations are operated by VNG Norge AS (30%) using the Transocean Arctic drilling rig with partners Spike Exploration Holdings AS (30%) and Rocksource Exploration Norway AS (15%).

Nice rising trend ...at long last....going long....I don't agree with the bears on oil for this year...in fact the opposite with the world economy recovering...and this year should be a recovery year for minnow oil companies and mid-range ones as well..(FPM are mid range)....well that's my view (for what it's worth)...

rf reports suggest US will become a net exporter of oil and gas shortly would this not have a negative impact on energy prices?

Can you really see energy prices dropping across the globe ?.....I can't......check out your electricity and gas bills.....Far east and middle east energy consumption is rocketing and their demand (across perhaps fifty countries) plus the BRIC ones (Brazil, Russia, India,China) is going to put pressure on supplies....energy prices are going to go up, not down !...

StockMarketWire.com
Faroe Petroleum has been awarded 10 new prospective exploration licences, including two operatorships, under the 2013 Norwegian Awards in Pre-defined Areas licensing round.

These 10 licences equate to the largest number awarded in this APA round, equal with Centrica and Statoil.

Chief executive Graham Stewart said: "We are delighted with these licence awards, which add considerable new potential to our forward drilling programme.

"Faroe has again been very successful in its licence application strategy, and this award is the largest to date for the company, and indeed in the entire APA round, alongside Statoil and Centrica. This demonstrates the strength of our reputation in Norway and further positions us as having one of the largest licence portfolios on the Norwegian Continental Shelf.

"Faroe Petroleum has built a strong and sustainable exploration company, with Norway at centre stage. Our significant Norwegian portfolio has a diversified mix of both near-field and frontier opportunities, from which we can high-grade the best prospects for drilling.

"The combined advantages of Norway's progressive and highly successful fiscal incentivisation for exploration and our own cash generating production ensure we can continue to make Norway a key part of our value creating business strategy."

All well and good - they just need to start being successful again with the drill-bit.

StockMarketWire.com
Faroe Petroleum has confirmed a small discovery of oil in the Novus prospect the Norwegian Sea.

Faroe says the preliminary volumetric gross estimate of the size of the discovery at the 6507/10-2S exploration well is 6-15 million barrels of oil equivalent recoverable, net to Faroe 1.8-4.5 mmboe.

Faroe adds: "Due to the presence of a large gas cap in the reservoir, Novus is unlikely to be of commercial size on its own."

But it adds: "Nearby de-risked prospects and leads offer potential for a future commercial combination."

The well encountered a 12 metre net gas column and a 12.5 metre net oil column in a high quality, thicker than expected Garn formation.

The well confirmed the play model, with excellent quality reservoirs in the area, and that 3D seismic anomalies are diagnostic as a direct hydrocarbon indicator in these types of reservoirs.

The well result will be used to refine the geological model and de-risk additional prospects and leads on the licence for potential future drilling.

Faroe said the well cost was significantly mitigated through the August farm down from 50% to 30%, on a cost carried basis, together with the Norwegian tax rebate.

Chief executive Graham Stewart said: "We are pleased to announce a small discovery of oil in the Novus prospect and the de-risking of the identified structures and prospects which remain in the licence, through the successfully calibrated seismic data. The well confirms the robustness of our geophysical model and the team's ability, and there is real potential for Novus to have future commercial value in combination with a discovery from one of the identified and de-risked prospects and leads in the immediate vicinity. "Elsewhere in Norway, the exploration campaign continues, following the significant Snilehorn discovery announced in November 2013, with the current drilling of the Butch East well (Faroe 15%), located close to the producing Ula, Tambar and Gyda oil fields. Also drilling currently is the Pil exploration well which is in close proximity to the Njord hub facilities. We look forward to the commencement of drilling on the Solberg (Faroe 20%) and Butch South West (Faroe 15%) prospects, both in Norway in the near future."

StockMarketWire.com
Faroe Petroleum has confirmed the spudding of the Wintershall-operated Solberg appraisal well 6407/1-7 the Norwegian Sea.

Faroe has a 20% interest in the well. The Solberg prospect is located in the APA 2007 license PL475 on the Halten Terrace in the Norwegian Sea four kilometres north-east of the Tyrihans field and eight kilometres south-east of Faroe's significant Maria discovery (2010).

The well will assess the lateral extent and size of the Lower Cretaceous Rodriguez discovery announced by Faroe in January 2013, where moveable hydrocarbons were discovered in sandstone layers in the Lange formation.

Well ...my market picks are not going according to plan...apart from one or two....not happy about this.....dozens of prospects and if you had asked me three years ago where the sp would have been today : I would have guessed between 300p to 400p...(:(((...

Still drilling and lots of other wells to drill this year rf. Keep the faith!

Well...I'm a diehard for this share Harrycat...but it is getting on my nerves...

Oil and gas discovery at the Pil well in the Norwegian Sea

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway, the Atlantic margin and the North Sea, is pleased to announce an oil and gas discovery on the Pil exploration well in the Norwegian Sea (Faroe 25%).

Highlights
· A gross hydrocarbon-bearing reservoir section with approximately 135 metres of oil and 91 metres of gas has been penetrated
· Extensive coring, wireline logs and pressure data show oil and gas in reservoir sands with a very high net to gross ratio
· Drill stem testing will now be undertaken to acquire fluid samples and establish commercial flow rates
· Subject to positive test results, an immediate side track well is expected to be drilled to appraise the discovery

http://www.moneyam.com/action/news/showArticle?id=4767804

Very good news.....looks impressive !...

At long last this looks like coming right.....3 wells concurrently being drilled.....first one has hit oil and gas : 135 metres of oil....(400 ft pay zone)....plus gas...25% owned....wow !...if this flows alright...plus two other wells....might be lucky on one of them....sp in my opinion, could soar !...

Going completely unnoticed....if the intervals flow : could go I reckon past 140p....perhaps more...and it's not often a mid-range company has 3 wells being drilled all at the same time !....so plenty of upside here...

StockMarketWire.com
Faroe Petroleum will deliver its preliminary results for the year ended 31st December on 25th March 2014.

Taking a long time testing the intervals....good....

StockMarketWire.com
Independent oil and gas group Faroe Petroleum's revenues fell to £129.4m in the year to the end of December - down from £158.8m last time.

EBITDAX fell to £80.5m (2012: £96.3m) but the group posts a profit after tax pf £14.1m compared with a loss of £5.2m a year ago as exploration write-offs fell to £15.4m (2012: £71.1m).

Chief executive Graham Stewart said: "2013 was another year in which we delivered a sustained, high impact exploration programme, which delivered success with the drill bit, coupled with a significant increase in our 2P reserves and contingent resources.

"Our active exploration drilling programme continues with operations ongoing on three exploration wells in Norway - Pil (Faroe 25%), Solberg (Faroe 20%) and Butch East (Faroe 15%). Pil has already been announced as an oil and gas discovery and a production test is under way. Butch East is the first of two back-to-back wells on the Butch area, on the same structure as the significant Butch Main discovery with the Butch South West well to follow. Drilling operations are also ongoing on Solberg.

Following the Pil and Snilehorn successes, further de-risked drilling targets are currently being matured for near-term drilling while additional prospects are also being prepared for drilling decisions. With the new Snilehorn and Pil discoveries, the Greater Njord Area is increasingly becoming an exciting asset with substantial remaining reserves, new discovered resources, and further high potential drilling targets. "We have strengthened our production portfolio with the East Foinaven oil field acquisition and by bringing both the Hyme oil field and the Orca gas field on-stream in 2013. The unscheduled production interruption on Njord and the Hyme satellite since July 2013 affected production levels in the year and we look forward to their return to production this summer.

"Faroe is in an excellent position to create significant shareholder value by continuing its successful and sustainable multi-well drilling campaign while in parallel pursuing further investment and acquisition opportunities."

Results....the thing to pick out is : looks like (fingers crossed) that they might have hit the jackpot with several oil discoveries in the same area ...and possible linked ?...(25 percent owned)....extra wells needed to confirm....sp could soar if confirmed !...

sp rising.....taking ages for drill testing and results....who knows ?,...a billion barrel discovery ?....perhaps not...but 500 million barrels ?...perhaps...perhaps not quite so much...just praying that this share doesn't give me the Pharaoh's again !...

Up again ...on a bad day....rns due....for once : it might be a superb discovery !...with good flow rates...

.

Still no update......but this could be one of their best ever rns's coming up....fingers crossed.......

Superb results !....I was almost expecting it....plus perhaps much more to come with two side tracks and the Butch well !...

StockMarketWire.com
Faroe Petroleum has announced a successful drill stem test on the 6406/12-3S Pil exploration well (Faroe 25%), drilled 33 kilometres from the Njord production facility (Faroe 7.5%) in the Norwegian Sea. Faroe said the well flowed at a stable rate of 6,710 bopd of 37° API oil from a 56/64-inch choke providing clear evidence of a prolific reservoir.

The preliminary estimated range of recoverable resource, from the results of the initial exploration well, is between 50 and 170 million barrels of oil equivalent (mmboe) - significantly greater than expected.

A sidetrack well is to be drilled immediately following completion of the DST to appraise the lateral extent of the Pil discovery.

A second sidetrack well to test further prospectivity in the neighbouring Bue target is also being planned in immediate succession.

Up a fraction on a red day......much more to come from FPM....

Double page article in Shares mag !...excellent read....Pil discovery might be much bigger than anticipated...this is what I've been thinking all along.....way undervalued this company !...

At long last the market is realising how undervalued this company is.....sp might make 180p plus if Pil (now sidetracking) is much bigger than first estimated....plus Butch (North Sea) ongoing as well.....all helping to push the sp higher !...(by far my biggest holding)....so much potential in this share...will end up being taken over for sure...

Up a touch again...

OK...own up ...who put the one share deal through ?.....mighty risky trade that...

Two shares now.....twice as many...

Acquisition of Operated Interests in UK Producing Ketch and Schooner Fields
Faroe Petroleum is pleased to announce the conditional acquisition of a 60% operated interest in the Ketch Field and a 53.1% operated interest in the Schooner Field in the UK Southern North Sea gas basin (the "Interests") from Tullow Oil SK Limited ("Tullow Oil"), a subsidiary of Tullow Oil plc (the "Acquisition") for an initial consideration of £35m.

Highlights
o Faroe to hold a 60% operated interests in the Ketch and Schooner fields by acquiring

· 60% operated interest in the Ketch Field

· 53.1% operated interest in the Schooner Unit (Faroe currently 6.9%)

o Estimated net production to Faroe from the Interests in 2014 of 3,000 - 4,000 boepd taking estimates of the Company average economic production for 2014 to 7,000 - 10,000 boepd

o 2P Reserves at effective date of 1 January 2014 estimated at 5.9 mmboe, net to Faroe, taking total net reserves to 33.1 mmboe

o Initial consideration of £35 million

o Ketch and Schooner are established gas fields each with considerable upside potential to increase production, grow reserves and extend field life

o Establishes Faroe as an operator of producing assets in the UK North Sea

o Acquisition anticipated to complete before year-end, with initial consideration reduced for net income attributable to the Interests since the effective date of 1 January 2014

o 2013 pre-tax profits of £18.6 million attributable to the Interests

The Ketch and Schooner Fields are located in Block 44/28b, and Blocks 44/26a and 43/30a in the UK sector of the Southern North Sea, 150 kilometres from the Theddlethorpe Gas Terminal on the Lincolnshire coast. The Ketch Field was discovered in 1984 and the Schooner Field in 1987, with first gas from Schooner in 1996 and Ketch in 1999. Both fields, developed by then-operator Shell, are multi-well developments with 'normally unmanned' platforms, currently managed by a third party Duty Holder. Gas is exported via the Caister Murdoch facilities to the Conoco-operated Theddlethorpe Gas Terminal where it is sold into the National Grid.

At 1 January 2014 the remaining Proven and Probable Reserves for the Interests were estimated by the Company to be 34 Bcf of gas and 0.3 mmbbl of condensate, equating to 5.9 mmboe in total, net to Faroe.

The initial consideration for the Acquisition, is £35 million payable to Tullow Oil in cash, which is to be funded from the Company's existing reserve based lending debt facility. The actual sum payable at completion will be reduced to take into account net income attributable to the Interests from the effective date of 1 January 2014. Further consideration of up to £10 million will be paid to Tullow if up to 10 Bcf gross (6 Bcf net to Faroe) of incremental gas is produced from a specific reservoir compartment on the Schooner field recently developed by the 2013 SA11 well. In addition, Faroe has identified several potential areas for investment in these assets, in order to further enhance reserves and value and to extend field life, certain of which are the subject of contingent royalties. In the event that the Schooner joint venture pursues the exploration and subsequent development of the Schooner C and Schooner Far NW targets, royalty payments will become due to Tullow Oil as to 50p/mscf on the first 250 Bcf gross production from the Schooner C area and 50p/mscf on the first 100 Bcf of gross production from Schooner Far NW area, up to a maximum potential £92.2million. For such royalty payments to be paid in full, approximately 35mmboe net to Faroe would have to be produced from the Schooner C and Schooner Far NW areas, compared to the current 5.9mmboe of net Proven and Probable reserves.

The estimated average 2014 production from the Interests is expected to be between 3,000 and 4,000 boepd net to Faroe. This raises the Company's guidance for full-year Economic Production for the year ended 31 December 2014 to between 7,000 and 10,000 boepd.

Another good move by this company it seems ....

150p. A little too far too fast, imo. Am tempted to take profit tomorrow and wait for a drop.

No drop if Butch turns out alright and Pil might be much..much...larger than first estimations !....40 million at first now 50 to 170 million....perhaps even far larger....timing is difficult...30 day rule (which is a pain in the arse and very unfair)(not in an Isa or Sipp)..(or if you are a city trader) restricts it a bit...you might sell out only for a great rns to appear...tricky...doing that...I'm staying put.....180p target...perhaps 200p now...can do it on spreads....(I'm very long by the way )...

So we've heard ;)

Are you in Balerboy ?...welcome aboard !...

Each day the sp drops at the start and by the end of session the sp goes slightly into blue...

I took a little profit a few days back and will wait for a pullback. Good luck if you are hanging on rf!

With both hands Harrycat.....not sure about a pullback....Butch and Pil results to come....fingers crossed for a positive result.....

There you go...sp recovering gently....

Butch East exploration well results

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, announces that drilling has reached target depth on the Centrica-operated Butch East exploration well 8/10-5S and a subsequent up-dip appraisal well 8/10-5A, the first of two back-to back-wells in Licence PL405, following up the Butch Main discovery (Faroe 15%).

The Butch East exploration well spudded on 29 December 2013 and reached total depth in 8/10-5A of 2,307 metres in the Zechstein salt formation. The well targeted sandstones of the Upper Jurassic reservoir of the Ula formation and whilst a good quality reservoir was confirmed, no hydrocarbons were encountered at this location.

Damn.....bloody hell...aggghhh...triggered my stop loss...eaten my profit on my spread....grrrrr...

Harry : you were right....

Sorry to see you got stopped out rf. It's getting more and more difficult to find oil in the North Sea, so in this instance thought it best to take profit early. Of course that could have gone either way and had they been successful I would be kicking myself. Don't forget that I don't S/B so I can always just sit and wait if necessary with stock.

I am mostly in shares as well so still in...but on the spreads had to buy back this morning....could not bring myself into closing them last week with all the pending news...still that was a nasty pullback, was not sure if Pil news was going to come first or second or together with Butch...plenty more news to come...good future overall for this company I reckon....180 to 200p target for me....the shares themselves are better for me than the high risk spreads...

FPM, like TLW, used to have the magic touch with the emphasis on the past tense

You won't regret picking some up Cynic...I can guarantee it..(terms and conditions apply)(over 18teens only).....

(well that's what Rolf Harris said anyway)...

and freddie starr walked out on susanna reid when given a only moderately leading question

more seriously ......

why should FPM be even as good a bet as XEL?

I reckon this year the sp might touch 200p.....they have so many prospects ..;...some are bound to come right plus production is rising and most of the exploration costs in Norwegian waters can be offset by 78 %....so ... 200p yes....

straws, nothing but straws
would rather back TLW or XEL

It's up to you but I prefer this one to the other two...am in XEL though...

Holding up well with the market dropping this afternoon....XEL have dived though....

glad to say i hold none of the 3 mentioned above .... may be some good bottom fishing to do in the morning

Rebounding nicely...hope the next rns is better than the last...

Pil oil discovery - successful side-track appraisal well drilled

Faroe Petroleum is pleased to announce the completion of a successful initial side-track appraisal well on the Pil oil and gas discovery (Faroe 25%) in the Norwegian Sea.

The Pil side-track well (6406/12-3 B), to appraise for additional hydrocarbons along the Pil structure and down-dip from the initial discovery well, has reached a total depth of 3,996 metres below sea level. Results based on extensive coring, wireline logs and pressure data show that the well has encountered oil in reservoir sands with a very high net to gross ratio. Preliminary data indicate a gross hydrocarbon-bearing reservoir section with approximately 80 metres of oil in the Upper Jurassic reservoir of the Rogn Formation. The oil-bearing interval in the side-track well was found to be at a similar pressure level to the oil bearing interval in the initial discovery well.

As announced on 6 March 2014, the Pil discovery well (6406/12‐3S) encountered a gross hydrocarbon-bearing reservoir section with approximately 135 metres of oil and 91 metres of gas in the Upper Jurassic reservoir of the of the Rogn Formation. A subsequent drill stem test generated a stable flow rate of 6,710 bopd of 37° API oil from a 56/64" choke, providing clear evidence of a prolific reservoir.

A second side-track well is planned to commence in the coming days to test the separate Bue prospect, which has the potential to add further volumes to the Pil discovery.

The Pil discovery is located within tie-back distance some 33 kilometres to the south east of the Njord platform in which the Company holds a 7.5% working interest. The vertical depth of the well is currently at 3,605 metres. The Pil licence drilling operations are operated by VNG Norge AS (30%) using the Transocean Arctic drilling rig, with partners Spike Exploration Holdings AS (30%) and Rocksource Exploration Norway AS (15%).

Graham Stewart, Chief Executive of Faroe Petroleum, commented:
"We are very pleased to announce the results of this successful side-track appraisal well on the Pil discovery, which proves further resource potential in this already significant discovery. The successful well result on this Pil appraisal side-track adds further value to Faroe's already substantial position in this prolific part of the Norwegian Sea, and we aim to unlock further potential in this exciting core area.

"In the near term we look forward to reporting results from exploration drilling on both the nearby Bue prospect (Faroe 25%) and the Butch South West prospect (Faroe 15%) in the Norwegian North Sea."

That was a shortlived rise !.....sp should be far higher with the success this company is having...went up to 148p...back down to 138p...

Butch South West exploration well commences drilling in the Norwegian North Sea
Faroe Petroleum is pleased to announce the spudding of the Centrica-operated Butch South West exploration well 8/10-6S (Faroe 15%).

Butch South West, which is adjacent to the Company's 2011 Butch discovery, is situated in approximately 65 metres water depth in the Norwegian North Sea, close to significant existing infrastructure with the giant Ula field approximately seven kilometres to the north-west, Tambar approximately ten kilometres to the south west and Gyda approximately 20 kilometres to the south.

The significant Butch Main oil discovery (Faroe 15%) was made in late 2011 and contains a light crude oil in a high quality reservoir, the Upper Jurassic reservoir of the Ula formation. The Butch South West exploration well is located in a separate segment from both the Butch East well, the results of which were announced on 12 May 2014, and the Butch Main well.

The operator is currently working on a development plan for the Butch Main discovery, in parallel with drilling the Butch South West well. If Butch South West is successful the development has the potential to become a stand-alone design, with its own dedicated facility, instead of a sub-sea tie-back to existing nearby infrastructure."

StockMarketWire.com
Faroe Petroleum has completed the proposed placing announced yesterday and increased the amount from £45m to £65m, gross. A total of 54,170,000 new ordinary shares were placed at 120p apiece. The placing was increased due to a very strong response by institutional investors..

The further funds will be used to pursue additional production acquisitions and to accelerate the conversion of the company's 2C resources into 2P reserves.

StockMarketWire.com
Faroe Petroleum has confirmed that no hydrocarbons were encountered at the Butch South West exploration well 8/10-6S.

The Centrica-operated exploration well spudded in early June 2014 and reached total depth of 1,945 metres in the Permian Zechstein salt formation.

Faroes says the well targeted sandstones of the Upper Jurassic reservoir of the Ula formation and while a good quality reservoir was confirmed with a 55 metre gross section, no hydrocarbons were encountered.

The Butch South West drilling operations were undertaken by Centrica (40%) using the Maersk Giant jack-up drilling rig, together with the other joint venture partners Suncor Norge AS (30%) and Tullow Oil Norge AS (15%). Well 8/10-6S will now be plugged and abandoned.

Chief executive Graham Stewart said: "Whilst it is disappointing that the eastern and south western flanks of the Butch salt structure have not added further resource, the focus of the joint venture is now turning to commercialising the Butch Main oil field.

"Plans to develop Butch Main are already advanced and we look forward to reporting further progress on this important oil field in the coming months. "In the meantime, following a very busy period of exploration drilling for the Company, we expect to announce the results of the Bue side-track exploration well in Norway in the coming days."

StockMarketWire.com
Faroe Petroleum has appointed Jorunn Saetre as an independent non-executive director and announced that Hanne Harlem is stepping down from the board. Saetre is Norwegian and a chemical engineer by background who progressed to senior positions with Halliburton, in Norway, Europe and the US, over a 30 year period.

Her roles included serving as Director of Halliburton's European Research Centre, head of Halliburton's overall Scandinavian operations and responsibility for global production enhancement activities. In 2008, she was the first to be awarded the title of 'Oil Woman of the Year' by the Stavanger Society of Petroleum Engineers. Saetre is currently a board director of global oil and gas service company AGR Group ASA, rig team leader and head of AGR's Stavanger office.

She will take up her appointment with Faroe on 1 September.

After serving four years with Faroe, and to meet the demands of her full time role with the City of Oslo, Hanne Harlem has elected to step down from the board as an independent non-executive director to coincide with Saetre's appointment.

HARRYCAT - you look rather lonely on here, so I join you in FPM with this piece:

Market sentiment currently weighs heavily against the small N.Sea oil players; a fact that could present a useful contrarian trading opportunity.

As a small punt I have bought a few Faroe Petroleum (FPM) @ 105.25p – they look severely oversold – if interested see the charts I posted on ADxxx's FPM thread earlier today.

I won't post all the facts and figures as you'll find plenty enough on that same thread.

I will however post two interesting commentary pieces:

# Renowned oil blogger Malcy said this in his FREE blog last week:

Faroe Petroleum: While on the subject of rewarding investments I have been genuinely surprised at the performance of Faroe in recent months. I know that it is not unusual for shares to drift post a money raise but the indigestion should have been cured by now. I decided to get in touch with CEO Graham Stewart yesterday to touch base following my recent meeting just to make sure I wasn’t barking up the wrong tree. Since that meeting the Bue well has been announced and whilst it was indeed a separate structure, is was always expected to be so. The company is carrying 80-200m barrels for Pil and Bue, mainly for the former which I still believe may be significantly exceeded and with further testing up to the fault and to the north east leaves plenty of scope. With such discoveries as Snilehorn in this highly prospective area the outlook for Faroe is very positive indeed. It is worth going to their website and looking at their most recent presentation which in my view endorses my optimism. Faroe is like a lot of good quality E&P companies at the moment totally being missed by the market, I understand that markets are bigger than most but this is another opportunity and at change from 110p a share ludicrously good value. - See more at:

http://www.malcysblog.com/2014/08/oil-price-genel-faroe-sundry-and-finally/#sthash.6ofkKP8v.dpuf


# Further commentary appeared in this extract from Interactive Investors’ weekend email:

http://www.iii.co.uk/articles/185737/five-oil-explorers-upside-potential

Faroe Petroleum, 107p

Faroe Petroleum (FPM) is working away in Norway, the Atlantic Margin and the UK North Sea. It has access to 100 million barrel reserves in Norway and an enterprise value of around $3/$4 per barrel, cheaper than the $5/$7 per barrel benchmark, says Orazbayeva.

Last month, it announced a find at the Bue prospect in the Norwegian Sea. The bottom end of the gross recoverable resource range at the nearby Pil discovery has increased significantly, too.

True, May's disappointing results at the Butch East exploration well has driven the price down to 107p, but Faroe is one for the longer-term investor. At the end of last month, it had restarted production at the Njord and Hyme fields after upgrade works, and plans a 2015 drilling campaign which will start to tap into its discovered resource.

With a 204p price target, Faroe is Panmure Gordon's top pick in the sector.
=====================================================

Thanks for that skyship, but the fact remains that Butch South West exploration well 8/10-6S was a dud and Bue is very small, so there isn't really anything new yet to interest investors.

Bue oil discovery
The Bue side-track well (6406/12-3 A) was drilled to a depth of 3,656.5 metres below sea level, 2.1 kilometres north east of the Pil discovery well 6406/12-3 S. The objective was to investigate the extent, thickness and reservoir properties in the Middle and Upper Jurassic reservoirs in the Bue prospect and to establish the pressure regime and hydrocarbon/water contact. The well encountered an 18 metre hydrocarbon column in reservoir rocks of variable quality. Pressure data indicates no communication between the Pil and Bue discoveries and Bue has therefore proven a separate accumulation of hydrocarbons.

An extensive data acquisition programme was carried out including a fluid sample and the operator's preliminary estimate of the gross size of the Bue discovery is between 6 and 25 million barrels of recoverable oil equivalent ("mmboe").

Unaudited Interim Results for the six months ended 30 June 2014
http://www.moneyam.com/action/news/showArticle?id=4890094
Faroe Petroleum announces its unaudited Interim Results for the six months ended 30 June 2014.

Highlights
Activity
· Norwegian exploration delivering significant success
o Pil oil discovery announced in March 2014, significantly larger than the pre-drill expectation followed by successful discovery in the Bue side-track well (combined 20 to 50 mmboe net to Faroe)
o A small oil and gas discovery was made on Novus and a condensate discovery on Solberg, announced in January and April 2014 respectively
o Butch East and Butch South West announced as unsuccessful in May and July 2014 respectively following the Butch Main oil discovery in 2011 which is now being planned for development
o 10 new licence awards in Norwegian 2013 APA Round (two of which are operated by Faroe)
· Strong production and pre-development portfolio
o Agreed to acquire 53.1% and 60% of operated Schooner and Ketch gas and condensate assets in the UK southern North Sea for initial consideration of £35 million with effect from 1 January 2014
o Njord and Hyme fields brought back onto production in July 2014 following successful completion of structural reinforcement work on the deck frame
o In line with our strategy to monetise discoveries, the Glenlivet interest is to be sold to Total (field operator) for a combined consideration of £10 million, part deferred
o Heads of agreement entered into with Perth partners enabling future joint development of Perth (Faroe 34.6%), Dolphin (Faroe 34.6%) and Lowlander (Faroe 100%)
o Average accounting production of 3,901 boepd(1) in the period (1H 2013: 7,477 boepd) - reduction mainly due to Njord and Hyme shut-in
o Average economic production, including Schooner and Ketch, of 7,592 boepd in the period (1H 2013: 7,890 boepd)

StockMarketWire.com
Faroe Petroleum has been awarded three new licensing options (LO 14/1, 14/2 and 14/3) in the Celtic Sea by Ireland's Minister for Communications, Energy and Natural Resources.

The two-year licensing options are located on the southern margin of the North Celtic Sea basin, in relatively shallow water depths of between 80 and 110 metres, which together cover an area of 3,458km2 and are all situated within 75km of the south coast of Ireland.

The options are targeting the under-explored Triassic Play, comprising Sherwood Sandstone reservoir juxtaposed against Lower Jurassic oil prone source rocks. The age and configuration of source and reservoir bear many similarities to the Wytch Farm oil field, onshore UK. Initial interpretation of existing 2D seismic data has revealed the presence of a number of large structural traps within the Licensing Options areas

StockMarketWire.com
Faroe Petroleum has completed the previously announced acquisition of a 53.1% operated interest in the Schooner field and a 60% operated interest in the Ketch field in the UK southern North Sea gas basin from Tullow Oil SK.

Remaining proved and probable reserves, as evaluated by the company, as at 1 January were 5.9 million barrels of oil equivalent ("mmboe") net to Faroe Petroleum.

Average economic production for the first six months net to the company was approximately 3,700 boepd. Chief executive Graham Stewart said: "We are very pleased to announce the completion of this acquisition, which broadens our production base further and both boosts and diversifies our oil and gas production portfolio. "Schooner and Ketch are good quality producing fields, well known to the Company and which offer upside potential in the form of increasing reserves, production and field life. The transaction is tax efficient for us, providing shelter for both past and future tax losses in the UK and is in line with our strategy to grow our production portfolio to continue the efficient funding of Faroe's ongoing exploration and appraisal programme."

Numis reiterates buy on Faroe Petroleum, target cut from 142p to 103p.

StockMarketWire.com
Faroe Petroleum has been awarded five new prospective exploration licences, including one operatorship, under the 2014 Norwegian APA (Awards in Pre-defined Areas) Licence Round on the Norwegian Continental Shelf.

The company has been awarded three new licences in the area surrounding its Pil & Bue discoveries:

· Licence PL793 Portrush - Blocks 6407/7, 8, 10 and 11: Faroe (20%), A/S Norske Shell (40% and operator), Petoro (20%) and VNG (20%): The Portrush Prospect is an analogue to the Boomerang Prospect. The main prospect at Portrush is an Upper Jurassic sandstone wedge along the main basin bounding fault, and in addition the licence area contains several other promising prospects and leads. The work programme includes licensing of 3D seismic data. The Boomerang Prospect is one of the targets to be drilled in summer 2015 by the Company (Faroe 25%) as a follow up to the Pil discovery in the PL586 licence.

· Licence PL794 Rosapenna - Blocks 6407/7 and 6407/10: Faroe (20%), Statoil (40% and operator), E.ON (20%) and VNG (20%): The Rosapenna prospect is another direct analogue to the Boomerang Prospect. The work programme includes the licensing of 3D seismic data.

· Licence PL792 Slynge - Blocks 6306/2: Faroe (50%) and Centrica (50% and operator): The Slynge area is located immediately to the south of the PL586 Pil licence with a structural setting analogous to the Pil discovery and Boomerang prospect. The work programme includes the licensing of 3D seismic data.

The company has also been awarded two new licences in the North Sea as extensions to existing exploration licences:

· Licence PL676BS Firkløver extension - Block 25/7, 10: Faroe (40% and operator), Total E&P Norge AS ("Total") (20%), Det norske oljeselskap ASA ("Det Norske") (10%), E.ON (10%) and Petoro AS (20%): This North Sea licence extension is located east and south-east of the existing North Sea PL676 S licence awarded in the 2012 APA round. The extension will include up-dip areas of the Krembanan Prospect east of the existing licence area. There is no incremental work programme cost associated with this licence. The work commitment is to perform and complete technical studies already initiated in the PL676S licence.

· Licence PL627B Shango Extension - Block 25/6: Faroe (20%), Total (40% and operator), Centrica Norge AS (20%) and Det Norske (20%): This licence is located north of the PL627 licence area and covers the northern extension of the Shango Prospect which is scheduled to be drilled in the first half of 2015. There is no incremental work programme cost associated with this licence.

Chief executive Graham Stewart said: "Faroe has again been very successful in its licence application strategy, winning a further five important licences in the latest Norwegian licensing round, and again demonstrating the strength of our position in Norway. These new awards enhance our licence portfolio, which is one of the largest on the Norwegian Continental Shelf. The new licences and licence extensions add exciting potential to the Company in Norway and further boost our already significant position in the highly prospective area surrounding our Pil and Bue discoveries.

"Despite the challenges of a low oil price, Faroe remains robust due to its strong, largely unleveraged balance sheet, profitable cash flow from a balanced production portfolio and modest capital commitments. This strength, in combination with Norway's progressive and highly successful fiscal incentivisation, ensures Faroe is well placed to continue to grow its position in Norway as a key part of our value creating strategy."

StockMarketWire.com
Faroe Petroleum expects 2015 to be another year of growth, despite challenging market conditions.

Chief executive Graham Stewart said that on an operational level, 2014 delivered excellent progress for the business with sustained production coming in at the upper end of expectations/guidance, significant exploration success at the Pil and Bue wells and the acquisition of the Schooner & Ketch gas fields.

He added: "Our Norwegian position is now one of the most significant of any UK independent E&P company and, despite challenging market conditions, the Company is set for 2015 to be another year of growth, with an exciting and fully-funded drilling programme of low cost, high impact exploration wells.

"With the current low oil price environment, there is much focus on both cost and financial strength. Faroe is particularly robust despite low oil prices, due to a combination of factors, including: our significant cash position and substantially undrawn debt facilities; sustained cash flow from Faroe's balanced oil and gas production and, following the sale in 2014 of our interest in Glenlivet, the absence of any substantial development capital commitments in 2015.

"Faroe is well placed to consider capitalising on potentially attractive asset opportunities which may become available in the period ahead."

StockMarketWire.com
Faroe Petroleum has confirmed the spudding of the Shango exploration well 25/6-5S (Faroe 20%) in the Norwegian North Sea.

The Shango prospect in Licence PL 627 (named Skirne East by the operator Total E&P Norge AS), is on the northern part of the Utsira High approximately 5 kilometres from the producing Skirne field, which is also operated by Total.

Shango is a structural prospect where the primary target is the Middle Jurassic Hugin formation reservoir, which has proved to be of excellent quality in the neighbouring Skirne field.

Faroe Petroleum announces its audited results for the year ended 31 December 2014.
Highlights
Exploration - successful year with significant Pil & Bue discoveries

· Significant Pil oil discovery in Norwegian Sea announced in March 2014, substantially larger than pre-drill expectations, followed by further successful discovery with the Bue side-track (combined 20-50 mmboe net to Faroe's 25% equity)
· An oil and gas discovery, not expected to be commercial on a stand-alone basis, made on Novus (close to producing Heidrun field) and condensate discovery on Solberg, announced in January and April 2014 respectively
· Butch East and Butch South West exploration wells announced as unsuccessful in May and July 2014 following the 2011 Butch Main oil discovery, which is now being planned for development
· Continued success in exploration licence rounds including awards of five new exploration licences (under the 2014 Norwegian APA Licence Round, announced in January 2015), three of which are in the Pil area
Production & Reserves - strong production performance and increase in reserves and contingent resources

· Average Economic Production(1) at 9,106 boepd (2013: 6,059 boepd) - at the upper end of guidance, with Njord and Hyme back on production, on schedule, and performing better than forecast
· Average Accounting Production1 at 6,579 boepd (2013: 5,871 boepd)
· Acquisition of operated interests in Schooner & Ketch gas fields (Faroe 60%) in the UK completed in October 2014, boosting gas production and improving tax efficiency through utilisation of carried forward tax losses
· Reserves increased by 13% with closing reserves at 30.6 mmboe (2013: 27.2 mmboe)
· Contingent resources increased by 49% to 109 mmboe (2013: 73 mmboe)
Financial - strong balance sheet and positive cashflows from operations, despite impairments

· Cash and net cash of £92.6 million and £69.6 million respectively at 31 December 2014 (31 December 2013: £40.6 million cash and net cash) £23.0 million drawn for Schooner and Ketch acquisition against the £160 million ($250 million) Reserve Based Lending facility
· Exploration Finance facility renewed and up-scaled to approx. £130 million (NOK1.5 billion) in September 2014
· Revenue £129.2 million (2013: £129.4 million) and EBITDAX £59.1 million (2013: £80.1 million) - reduction in EBITDAX principally due to lower realised price per boe at $71 (2013: $105)
· Loss after tax £55.0 million (2013: profit of £14.1 million) after pre-tax impairment charges of £38.5 million (2013: £2.1 million) and exploration write-offs of £131.7 million (2013: £15.4 million)
· Pre-tax exploration and appraisal capex of £87.2 million (£23.0 million post-tax) (2013: £73.0 million pre-tax, £24.8 million post-tax) and development and production investments (including acquisitions) of £48.3 million (2013: £48.5 million)
· Successful share placing in June 2014 raised £65 million (gross) - providing finance to accelerate exploration, appraisal and development activities and target further production acquisition opportunities

Outlook - active, fully funded exploration programme and well positioned for further acquisitions
· Forward exploration and appraisal programme fully funded from existing resources
· Four high impact exploration wells planned for 2015, including two follow up wells on the Pil discovery, all of which benefit from Norway's 78% exploration tax rebate
· 2015 exploration and appraisal capex is estimated to be approximately £100 million pre-tax (£26 million post-tax) and development and 2015 production capex is estimated to be approximately £17 million
· Production guidance for 2015 of 8,000-10,000 boepd, split 58% liquids (oil and condensate) and 42% gas
· 58% of 2015 Post-tax Production hedged - average floor at $89 per barrel for oil and £0.50 per therm for gas, predominantly with put options at the mid-point of our 2015 production guidance. Faroe aims to be cash-neutral in 2015 at an average Brent oil price of $60/bbl and gas price of £0.45 per therm with an expected average opex of approximately $30/boe
· In strong position to capitalise on market conditions with the aim of building value through further selective value-enhancing production acquisitions

(1) Economic Production in 2014 includes production from the acquired Schooner (53.1%) and Ketch (60%) fields from 1 January 2014 (the effective date). Accounting Production excludes production between the effective date and date of completion on 9 October 2014.


Graham Stewart, Chief Executive of Faroe Petroleum, commented:
"We are pleased with the progress of the Company in 2014 despite the low oil price environment. Operationally, the year delivered excellent results for the business with significant exploration success at the Pil and Bue wells, sustained production coming in at the upper end of expectations with Njord and Hyme back on production, and the acquisition of the Schooner and Ketch UK gas fields. With a reserves increase of 13% and a 49% increase in contingent resources in the year, the Company has again proved that its strategy to convert exploration prospects into resources and convert resources to reserves is working effectively.

"Our Norwegian position is now one of the most significant of any UK independent E&P company and, despite the challenging market conditions, the Company is set for another year of growth, with a fully-funded drilling programme of low cost, high impact exploration wells, all of which will benefit substantially from Norway's tax-based exploration financing incentives.

"In the current low oil price environment, there is much focus on both cost and financial strength. Faroe is particularly robust despite low oil prices, due to a combination of factors including: a significant cash position and substantially undrawn debt facilities; sustained cash flow from a balanced, low-opex and substantially hedged oil and gas production portfolio; and, following the sale in 2014 of our interest in Glenlivet, the absence of any substantial development capital commitments. Consequently, Faroe is well placed to deliver continuing commitment to its ongoing work programme and to capitalise potentially on attractive asset opportunities which may become available in the period ahead."

StockMarketWire.com
Faroe Petroleum has confirmed a promising discovery at the Skirne East exploration well 25/6-5S - although smaller than predicted.

The Total E&P Norge-operated well in the Norwegian North Sea encountered a net 10 metre gas column in the high quality Middle Jurassic Hugin formation.

Faroe - which has a 20% interest - says the preliminary volumetric gross estimate of the size of the discovery is 3 to 10 million barrels of oil equivalent recoverable (0.6 to 2.0 mmboe net to Faroe).

The partnership will now consider the potential for development of the Skirne East discovery. The Skirne East exploration well will now be plugged and abandoned as planned.

The Skirne East exploration well 25/6-5S spudded on 13 March 2015 and was drilled to a total depth of 2,366 metres below sea level. The Skirne East discovery in Licence PL 627 is located in the Norwegian North Sea on the northern part of the Utsira High approximately 5 kilometres from the Total operated producing Skirne field.

Chief executive Graham Stewart said: "We are pleased to announce the result of the Skirne East well which, although smaller than predicted, is a promising discovery particularly in light of the nearby Atla field which was recently developed with reserves within the resource range of the Skirne East discovery.

"During the coming months we expect to start drilling the first of two follow-up wells at the significant Pil discovery (Faroe 25%) on the Blink and Boomerang prospects, and also the Bister prospect to follow up on our recent significant Snilehorn discovery located close to the producing Njord field infrastructure.

"Our Norwegian position is now one of the most significant of any UK independent E&P company and with our robust balance sheet, despite challenging market conditions, the company is set for another exciting year in 2015."

StockMarketWire.com
Faroe Petroleum has confirmed the spudding of the Bister exploration well in the Norwegian Sea in licence PL 348/C, which also contains the producing Hyme field and the 2013 Snilehorn discovery.

The licence is located adjacent to the producing Njord field (Faroe 7.5%) with Statoil as the operator of both PL348 and Njord.

Well 6407/8-7 will be targeting oil and gas in the Jurassic, Ile, Tilje and Are formations (analogous to the Hyme oil field and Snilehorn reservoirs). There is a seismic amplitude anomaly on the Bister prospect of a similar character to the anomalies on both the Snilehorn discovery (estimated gross recoverable resource range of 57-101 mmboe) and the Hyme field. There is alsoevidence of a pressure barrier between Snilehorn and Hyme, which contributes towards the de-risking of the Bister prospect.

Results of Bister exploration well
Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, announces that drilling has reached target depth on the Statoil operated Bister exploration well in the Norwegian Sea (Faroe 7.5%).

The Bister exploration well 6407/8-7 spudded on 27 April 2015 and reached total vertical depth of 2,990 metres below sea level in the Åre Jurassic formation. This was followed by side-track 6407/8-7A which was drilled to a total vertical depth of 2,770 metres below sea level. The well and side-track targeted hydrocarbons in the Jurassic, Ile, Tilje and Åre formations (analogous to the Hyme oil field and Snilehorn reservoirs) and whilst good quality reservoirs were confirmed, no hydrocarbons were encountered at this location.

The Bister prospect is located in the Norwegian Sea in Licence PL 348/C, which is adjacent to the 2013 Snilehorn discovery (PL 348B) and nearby the producing Njord field and Hyme field (PL 348) (all Faroe 7.5%), and the results from the well will be used to calibrate the seismic interpretations in the licence, which still contains promising exploration targets. Statoil Petroleum AS is the operator of the PL348 licences and the Njord field.

The Bister well was operated by Statoil (35%) using the Transocean Spitsbergen drilling rig with partners GDF SUEZ E&P Norge AS (15%), E.ON E&P Norge AS (17.5%), Core Energy AS (22.5%) and VNG Norge AS (2.5%) and will now be plugged and abandoned as planned.

Graham Stewart, Chief Executive of Faroe Petroleum commented:
"Whilst the results for the Bister exploration well are disappointing, this was an opportunity to add further resources to an already resource rich licence, which includes the producing Hyme field and the significant 2013 Snilehorn discovery.

"This is the second well in our 2015 exploration programme, following the successful completion of the Skirne East discovery last month. During the coming months we also expect to start drilling the first of two follow-up wells at the significant Pil discovery (Faroe 25%) on the Blink and Boomerang prospects."

StockMarketWire.com
Faroe Petroleum's group production averaged approximately 11,324 barrels of oil equivalent per day in the five months to 31 May reflecting better than forecast performance from the main producing fields in its portfolio.

The average operating cost per barrel of oil equivalent for the same period was approximately US$22, reflecting higher throughput and lower costs in general. The company is expecting full year operating costs to be around $30/boe.

Following a successful wireline campaign on the Schooner and Ketch fields (UK) production has continued at stable rates and better than forecast. In the Brage field (Norway), the first of two infill wells has been successfully completed and brought on stream very recently, with good initial performance. The second infill well has spudded and is expected to be brought on stream in Q4 2015. Average production guidance for the year is under review but currently remains at 8,000 to 10,000 boepd. A review of this guidance will be undertaken following the summer maintenance period.

The company also said that drilling operations have started on the follow-up drilling programme to the significant Pil/Bue 2014 discoveries in the PL586 licence in the Norwegian Sea with the spudding of exploration well 6406/12-4S (Faroe 25%) on the Boomerang prospect.

And it said the Shell-operated exploration well to test the Portrush prospect in the PL793 licence (Faroe 20%) has been added to the expected programme for Q3 2015. The prospect is in the Norwegian Sea, close to the producing Njord field (and Pil discovery).

Chief executive Graham Stewart said: "I am delighted to report that Faroe Petroleum is performing very well despite continuing low oil prices and sector instability. 2015 is proving to be Faroe's most active year to date, with several exceptional prospects to be drilled and production at an all-time high.

"Faroe's consistent strategic focus and prudent approach to financial management have ensured that we have a strong balance sheet and are well placed to take advantage of attractive opportunities.

"Kicking off our follow-up drilling programme on the significant 2014 Pil and Bue discoveries, I am very pleased to announce the spudding of the Boomerang exploration well, located in the same licence and within tie-back distance of the producing Njord field infrastructure. I am also delighted that we can look forward to a further near-term exploration well, on the Shell-operated Portrush prospect, again located close to the Njord and Draugen fields.

"The Greater Njord Area, which includes the Pil and Bue discoveries, the producing Njord and Hyme fields as well as the Snilehorn discovery announced in late 2013, represent a significant proven resource and a substantial position for Faroe. The Company's exciting 2015 exploration drilling campaign, focused entirely on this area, has the potential to add considerable additional value."

StockMarketWire.com
Faroe Petroleum has confirmed the start of the Portrush exploration well 6407/10-5.

The Portrush prospect is located in the Norwegian Sea in licence PL793 and approximately 10 kilometres south east of the producing Statoil-operated Njord field (Faroe 7.5%) and 20 kilometres west of the Shell-operated Draugen field.

The exploration well will target prospective resources along the Vingleia fault in Upper Jurassic reservoirs, analogous to the reservoirs found in Pil, Bue and Draugen. The exploration licence PL793 was awarded to Faroe (20%) in January as part of the 2014 APA licensing round in a joint venture with AS Norske Shell (40% and operator), VNG Norge AS (20%) and Petoro AS (20%). The Portrush well will be drilled by the Transocean Barents semi-submersible drilling rig.

Chief executive Graham Stewart said: "I am very pleased to announce the spudding of the Shell operated Portrush exploration well located in proximity to our Pil and Bue discoveries and the Njord and Draugen fields. "In addition, drilling operations on the Boomerang prospect continue. The Company will announce the results from the Boomerang well when drilling operations are complete, which is expected in September 2015. The Company's exciting 2015 exploration drilling campaign, focuses entirely on this area in the Norwegian Sea, and has the potential to add considerable additional value."

Boomerang well results
Faroe Petroleum, is pleased to announce an oil discovery in the main bore of the Boomerang exploration well (Faroe 25%).

Highlights
Main bore 6406/12-4S:
· Drilled close to the Pil discovery
· The well encountered a 26 metre gross Upper Jurassic intra-Spekk/Rogn sandstones with good reservoir properties and moveable oil with preliminary estimates of recoverable volumes in the range between 13 and 31 million barrels of oil equivalent
· Hydrocarbons were also confirmed above the Pil oil-water contact in an 80 metre gross interval of Melke age sandstone of varying reservoir quality
· The main Pil reservoir sandstone was encountered within the water leg, as planned, giving important appraisal information for the Pil development

Side-track exploration well 6406/12-4A
· Drilled into the southern segment of the Boomerang prospect
· The well encountered approximately 530 metres gross thickness of Jurassic sandstones with poor reservoir quality
· The well had indications of hydrocarbons but the presence of moveable hydrocarbons was not proven
The 6406/12-4 wells were drilled on the Halten Terrace, about 33 kilometres south west of the Njord field and 1.7 kilometres south east of the Pil discovery well 6406/12-3 S.

The objective of the main well bore 6406/12-4S was to test the hydrocarbon potential in the south west segment of the Upper Jurassic Boomerang prospect close to the Pil discovery. The primary reservoir targets were Upper Jurassic reservoirs analogous to the Pil, Bue and Draugen field reservoirs.

The main well bore encountered a 26 metre gross Upper Jurassic intra-Spekk/Rogn sandstone. Preliminary analysis from wireline logs, pressure and fluid sampling shows that the well encountered sandstones with good reservoir properties and moveable oil. Preliminary estimates of recoverable volumes in the discovery range between 13 and 31 million barrels of oil equivalent.

The secondary objective of the main well bore was to investigate the extent, thickness and properties of Upper Jurassic Melke reservoir rocks, as well as the extent and level of the Pil oil-water contact. Hydrocarbons were confirmed above the Pil oil-water contact in an 80 metre gross interval of Melke age sandstone of varying reservoir quality, and the main Pil reservoir sandstone was encountered within the water leg, as planned, giving important appraisal information for the Pil development.

The exploration side-track 6406/12-4A was drilled into the southern segment of the Boomerang prospect with the main objective testing the hydrocarbon potential in the Upper Jurassic sandstone of the Spekk and Melke formations. The well encountered approximately 530 metres gross thickness of Jurassic sandstones with poor reservoir quality and reached a total vertical depth of 3,800 metres below sea level. The well had indications of hydrocarbons but the presence of moveable hydrocarbons was not proven.

The Boomerang well will now be plugged and abandoned and the rig will be moved approximately six kilometres to the north east to drill the Blink prospect (6406/12-5S). Blink is an independent structural and stratigraphic prospect. The well will target analogous Upper Jurassic reservoirs to Pil, Bue and Draugen.

This drilling campaign is being operated by VNG Norge AS (30%) using the Transocean Arctic semi-submersible drilling rig with partners Spike Exploration AS (30%) and Pure E&P Norway AS (15%).

Graham Stewart, Chief Executive of Faroe Petroleum commented:
"We are pleased to announce the results from the Boomerang well, which adds further resources to the Pil area from a new reservoir. This appraisal and exploration well has provided a significant amount of important data and again proven how prospective the Pil area is.

"While we carry out further evaluation, the exploration campaign continues with drilling of the Blink prospect, due to spud shortly. Blink is an exciting independent prospect targeted as a potentially large addition to the already significant Pil and Bue discoveries announced in 2014, all of which are located in the same licence."

Unaudited Interim Results for the six months ended 30 June 2015
Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, announces its unaudited Interim Results for the six months ended 30 June 2015.
Highlights
Operations - strong production performance and exploration continuing to deliver resource growth
· Strong production performance and low operating costs
o Average first half production of 10,971 boepd (H1 2014: 7,592 boepd[1]) as a result of good performance and high uptime in the main producing fields
o Balanced product mix of approximately 45% gas and 55% liquids
o Average operating cost per boe approximately $22 (2014: $33) - improvement due to higher volumes, cost efficiencies and weaker Norwegian krone
o Acquisition of Roc GB, announced in September 2015, increases our equity holdings in Blane and Enoch oil fields, strengthening our tax efficient UK production base
· Exploration programme continuing to deliver resource growth
o An oil discovery of 13-31 mmboe (net to Faroe 3-8 mmboe) was made on the Boomerang well in September 2015, adding to the 2014 Pil and Bue discoveries; the second of the two follow-up wells, Blink, to be drilled in Q4 2015
o Shell-operated Portrush well in Norway announced as dry in September 2015
o Two Norwegian exploration wells drilled and completed in H1 2015 - Bister was dry and Skirne East (Shango) was a gas discovery
o Further new exploration licence awards - five APA licences awarded in Norway in January 2015
Finance - enhanced cash flows and robust balance sheet
· Revenue £55.3 million (H1 2014: £53.5 million) and EBITDAX £39.8 million (H1 2014: £15.6 million)
· Realised hedging gains of £4.2 million net after premium (H1 2014: £0.5 million loss) - mainly on oil sales
· Operating profit £5.6 million (H1 2014: £15.4 million loss) and profit before tax £0.4 million (H1 2014: £20.1 million loss) - reflecting higher revenue, hedging gains, lower opex per boe and lower expensed exploration and appraisal costs
· Operating netback per boe $31 (2014: $38) - sharp drop in oil prices has been materially offset by combination of gains on oil hedges, stable gas prices and significant reduction in operating costs
· Exploration and appraisal capex £25.2 million (H1 2014: £65 million), equivalent to £6.3 million (H1 2014: £16.7 million) on a post-tax basis, taking account of 78% Norway exploration tax rebate
· Development and production investments £7.5 million (H1 2014: £9.8 million)
· Cash and net cash at 30 June 2015 £104.7 million and £81.7 million respectively (31 December 2014: £92.6 million and £69.6 million)
· Reserve based lending facility £145 million of which £23 million is drawn (31 December 2014: £23 million)
Outlook - narrowing of production guidance and continuing high-impact exploration programme
· Production guidance for full year 2015, excluding the impact of the recently announced Roc GB acquisition[2], narrowed to 9,000-10,000 boepd (previously 8,000-10,000 boepd) following strong performance in H1 2015 and successful Brage infill well
· Significant portion of production hedged, to underpin revenue
o Gas - approximately 90% hedged in H2 2015, 70% in 2016 and 50% in 2017 (on a post-tax basis) at 45-50 pence per therm
o Oil - approximately 33% hedged in H2 2015 and Q1 2016 (on a post-tax basis) at $60-90 per barrel
· Fully funded exploration and appraisal programme continuing as planned, with Blink exploration well, followed by two Barents Sea wells and at least one near field well in 2016
· Net exploration, development and production capital expenditure for 2015 forecast at approximately £100 million pre-tax (2014: £135 million), equivalent to £37 million on post-tax basis (2014: £71 million)
· Development plans for Butch, Njord and Pil are all progressing as planned with decisions scheduled for 2016 - all will benefit from significantly reduced industry costs
· With a balanced portfolio and a strong balance sheet, Faroe is well positioned to pursue growth opportunities.

Blink exploration well commences drilling in the Norwegian Sea

Faroe Petroleum is pleased to announce the commencement of the second Pil/Bue follow-up well with the spudding of exploration well 6406/12-5S (Faroe 25%) on the Blink prospect.

The Blink prospect is located in the Norwegian Sea in Licence PL586, which also contains the significant Pil and Bue discoveries (announced in 2014). The licence is located in proximity to the producing Njord field (Faroe 7.5%).
The drilling programme will target the Upper Jurassic reservoirs analogous to the Pil, Bue and Draugen field reservoirs. This well follows on directly from the Boomerang well which encountered a 26 metre gross Upper Jurassic intra-Spekk/Rogn sandstone containing estimated recoverable resources of between 13 and 31 million barrels of oil equivalent.

The Blink exploration well, located in water depth of approximately 360 metres, is operated by VNG Norge AS (30%) using the Transocean Arctic semi-submersible drilling rig with partners Spike Exploration AS (30%) and Pure E&P Norway AS (15%) and the results will be announced when drilling operations are complete.

I wish the blinkin' crude price would buck up...(with the price at the pumps remaining the same).....

The sp a few years ago would be way past 150p now....how times have changed and makes me wonder....crude cannot remain so low forever....

Operational Update
Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, is pleased to provide an operational update following completion of its 2015 drilling campaign as follows:

Highlights
- Production is continuing to perform above expectations and therefore 2015 full year guidance has increased to 9,500-10,500 boepd
- Blink exploration well 6406/12-5S (Faroe 25%) discovered prognosed reservoir but water wet
- The Pil, Bue and Boomerang discoveries constitute a large oil and gas accumulation and work will now proceed with field development planning
- Faroe's planned E&A drilling programme continues with an exciting programme for 2016 consisting of one frontier exploration well in the Barents Sea and two near field exploration wells, one in the Norwegian North Sea and the other in the Norwegian Sea. The 2016 total exploration programme cost is expected to be significantly lower than the 2015 programme
- The Njord Future Project is progressing to plan with tow-in expected in Q2 2016
- The Butch oil field development project has passed concept selection and will be advanced as a cost effective subsea tie-back to the Ula field
- Faroe has acquired a 75% interest and the operatorship of the South East Tor oil discovery in Norway from Lundin Petroleum
- Faroe's recent Roc Oil UK acquisition, comprising interests in Blane and Enoch, is expected to complete shortly
- Balance sheet remains strong with significant cash position, healthy cash flow, low debt and material undrawn debt capacity to assist in funding growth opportunities

Production
Production remains strong averaging approximately 10,350 boepd in the year to date. No significant further shut down periods are expected in any of the Company's largest fields and on that basis, Faroe announces an upward revision of the 2015 full year production guidance to 9,500 to 10,500 boepd average.

Exploration programme
Despite the disappointing well results on the Blink prospect, the Pil, Bue and Boomerang discoveries constitute a large oil and gas accumulation and together one of the most significant new discoveries and pending development projects in Norway in recent years. Their location, in close proximity to infrastructure and to Njord and Draugen, represents additional strategic significance. Work will proceed with planning of the Pil area field development (Faroe 25%). A large amount of data has been acquired during this year's drilling campaign, which will be used to revise the recoverable resource ranges, which currently stand at between 80 and 200 mmboe for Pil and Bue and between 13 and 21 mmboe for Boomerang. The combined discoveries have the potential to be either a standalone development or a tie-back to either the Njord field (Faroe 7.5%) or the Draugen field.

Faroe's drilling programme continues into 2016 with one frontier exploration well and two near field exploration wells currently being planned. The first well in early 2016 will be the giant Kvalross exploration well (Faroe 40%) in the Barents Sea operated by Wintershall. Kvalross will target a new play of Lower Triassic clinoform reservoirs within a megaclosure. The well will also target the Kvaltann Prospect consisting of channel sandstones in the Middle Triassic Snadd Formation. In addition to this high impact well, Faroe is planning two near field exploration wells, the first of which is the Norwegian North Sea Brasse exploration well (Faroe 50%) expected to be drilled mid next year. Brasse will test a structure immediately to the south of the Brage field and if successful could be tied back to Brage (Faroe 14.3%) or alternatively to Oseberg located a similar distance to the west. In addition, the Njord partnership (Faroe 7.5%) led by operator Statoil is planning to drill a new prospect, on the North Flank of Njord, in close proximity to the main field.

The Dazzler well in the Barents Sea, which was previously expected to be drilled in 2016, is now expected in 2017.

StockMarketWire.com
Faroe Petroleum reports a material increase in reserves following an independent technical report by Senergy (GB) Limited (LR Senergy).

Proved plus probable 2P reserves net to Faroe at 1 January 2016 have been estimated at 60.6 mmboe, representing an increase of 98.0% as compared to 30.6 mmboe at 1 January 2015. The principal differences result from:

* Adding the Butch field in Norway (Faroe 15%) to 2P Reserves: in October 2015, the operator Centrica and partners announced that the Butch field will be developed as a subsea tie-back to the BP-operated Ula field. LR Senergy has assessed Butch 2P Reserves net to Faroe at 6.4 mmboe;

* Adding Pil field in Norway (Faroe 25%) to 2P reserves: LR Senergy has evaluated the progress that has been made by the operator VNG Norge AS and partners in maturing the Pil discovery towards project selection in 2016, and has also evaluated the development options, which have been demonstrated to be economically viable. On that basis, LR Senergy has concluded that the volumes associated with the Pil project can be categorised as 2P Reserves. These have been assessed at 23.8 mmboe net to Faroe. The Pil 2P Reserves do not include the volumes associated with the Bue and Boomerang discoveries, which are currently less mature technically and will remain as Contingent Resources ("2C") for the time being;

* Further 2P Reserves have been added through the acquisition of Roc Oil (GB Holdings) Limited: LR Senergy have assessed 2P Reserves associated with the acquired 12.5% interest in the Blane Unit and 12.0% interest in the Enoch Unit at 1.6 mmboe;

* In addition, a number of positive technical revisions have allowed partial reserves replacement in the existing producing fields.

Chief executive Graham Stewart said: "I am very pleased to report this material increase in reserves over the year, generated principally from exploration success and which further underpins the significant value of the Company. This doubling of 2P reserves demonstrates clearly how our consistent strategy is delivering tangible results. "We look forward to an exciting three well exploration drilling programme for 2016 in Norway, which is firming up on cost efficient terms. Faroe enters 2016 in a robust financial position, with strong production, a solid cash balance and largely undrawn credit facilities."

StockMarketWire.com
Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, has announced the start of the Kvalross exploration well 7224/2-1 (Faroe 40%). Licence PL611, which contains the Kvalross prospect, is located in the Norwegian Barents Sea to the south of OMV's significant Wisting and Hanssen oil discoveries.

The well will test two independent targets, namely: the Kvalross prospect with significant oil and gas resource potential within Lower Triassic Klappmyss Formation clinoform reservoir; and the Kvaltann prospect which has additional oil potential within a Mid-Late Triassic Snadd Formation channel. Licence PL611 was awarded to Faroe in May 2011 in the Norwegian 21st Licensing Round together with co-venturers Wintershall Norge AS (40% and operator) and Petoro AS (20%). The Kvalross well is being drilled using the Transocean Arctic drilling rig and the results will be announced when drilling operations are complete.

Chief executive Graham Stewart said: "We are very pleased to announce the spudding of the Kvalross well which is the first of three exploration wells in Faroe's drilling programme for 2016 in Norway. This well will test two independent structures in a highly prospective area in the Norwegian Barents Sea. Kvalross is on trend with and just to the South of OMV's significant Wisting and Hanssen discoveries and will use the same rig as was used to make the Pil and Bue discoveries last year. "Faroe enters 2016 in robust financial health, with strong production, a solid cash position and largely un-utilised credit facilities, as we continue to evaluate the potential to take advantage of further good quality growth opportunities."

A mention here.

StockMarketWire.com
Faroe Petroleum has been awarded six new prospective exploration licences, including two operatorships, under the 2015 Norwegian APA (Awards in Pre-defined Areas) Licence Round on the Norwegian Continental Shelf.

The company has been awarded three new licences in the Norwegian Sea area:

- Licence PL836S Yoshi - Blocks 6406/2,3 below Cretaceous: Faroe (30%), Wintershall Norge AS (40% and operator), Centrica Resources (Norge) AS (30%).

- Licence PL845 Groney High - Blocks 6609/6, 6610/4,5,6: Faroe (20%), ConocoPhilips Skandinavia AS (40% and operator), Wintershall Norge AS (20%) and Dong E&P Norge AS (20%).

- Licence PL644B Aerosmith licence extension - Blocks 6506/11: Faroe (20%), OMV (Norge) AS (30% and operator), Repsol Exploration Norge AS (20%), Skagen 44 AS (20%) and Centrica Resources (Norge) AS (10%).

And it has been awarded three new licences in the Norwegian North Sea area:

- Licence PL810 Katie - Blocks 2/1, 7/12, 8/10: Faroe (40% and operator), Centrica Resources (Norge) AS (30%), Wellesley Petroleum AS (30%).

- Licence PL811 Gullaxy - Blocks 7/9,12 8/7,10: Faroe (20%), Centrica Resources (Norge) AS (40% and operator), Tullow Oil Norge AS (20%) and Origo Exploration Norway AS (20%).

- Licence PL825 Rungne - Blocks 30/3,6: Faroe (40% and operator), Fortis Petroleum Norge AS (30%) and Centrica Resources (Norge) AS (30%).

Chief executive Graham Stewart said: "Faroe has again been very successful in its licence application strategy, winning a further six licences in the latest Norwegian licensing round which add further upside potential to our portfolio. Significantly, we have further consolidated our position in core areas of the Norwegian continental shelf in which we have enjoyed recent exploration success, enhancing our acreage positions near and around the greater Njord Areas and the Butch development project. At this stage no well commitments have been offered and should we and our partners progress these toward exploration drilling, Faroe continues to benefit from the Norwegian tax system whereby 78% of all exploration related expenditure is eligible for a tax rebate in the following year.

"Faroe has a material and exciting drilling programme in 2016; we are currently drilling the Kvalross exploration well in the Barents Sea and have two further firm wells in the Norwegian Sea later in the year. Coupled with strong production, a solid cash position and largely un-utilised credit facilities we are confident in our ability to take advantage of opportunities which the current depressed oil price environment presents."

StockMarketWire.com
Faroe Petroleum's total average economic production for 2015 was at the upper end of guidance at approximately 10,530 barrels of oil equivalent per day, of which approximately 58% was liquids and 42% gas.

The main fields in Faroe's portfolio performed above expectations in 2015, which led to the upward adjustment of production guidance announced in November 2015

Faroe says 2015 was another year of growth and good progress for the company despite a backdrop of significantly lower commodity prices.

Chief executive Graham Stewart says: "e delivered our exploration drilling programme safely and under budget, adding further 2C resources, and we doubled our 2P reserves in high quality assets. Our diverse North Sea production portfolio also outperformed expectation, averaging 10,530 boepd with low unit operating costs, and we ended the year with a significant cash position of over £90m and a largely undrawn debt facility. "Looking ahead at 2016, we are well prepared to face the challenges of a continuing period of low commodity prices, while seeking to capitalise on our strong financial position to pursue consolidation opportunities in our core areas on the UK and Norwegian continental shelves."

Production:
* Two new infill wells in Brage (Faroe 14.26%) were successfully brought on stream adding new production capacity and contributing to a reduction in unit operating costs. The next drilling campaign at the Brage field is expected to commence in 2017

* The acquisition of interests in the Blane and Enoch fields was completed in November 2015 and boosted oil production and improved tax efficiency by accelerating the utilisation of carried forward tax losses

* In January 2016, Faroe produced on average approximately 10,000 boepd. Average full year 2016 production is forecast to be in the range of 7,000-9,000 boepd from all fields, which includes production from the Njord and Hyme fields until the end of May 2016, in accordance with plans for the Njord Future Project. Production in 2016 is expected to be split approximately 55% liquids and 45% gas

* Average opex per boe in 2015 was approximately $23/boe. Opex per boe in 2016 expected to be $27/boe reflecting lower average production levels

* Faroe continues to seek suitable value-enhancing production acquisitions, taking advantage of consolidation opportunities.

StockMarketWire.com
Faroe Petroleum reports disappointing results from the Kvalross exploration well in the Barents Sea .

But Faroe - which has a 40% interest in the Wintershall-operated well- said good quality sands were encountered in the Kvaltann prospect but were found to be water wet. In the main Kvalross target hydrocarbon shows were observed, but not in good quality reservoirs. No commercial discovery has been made.

The well will be plugged and abandoned.

Chief executive Graham Stewart said: "Whilst the results for the Barents Sea Kvalross well are disappointing, we are pleased that the well has been drilled significantly below budget and to have encountered hydrocarbon shows which will add to the large data bank we now hold over this prospective frontier area. We look forward now to the next two exploration wells in our programme. The near-field Brasse well in the Norwegian North Sea and the Njord North Flank well in the Norwegian Sea are scheduled to be drilled in the summer and second half of 2016 respectively.

"Faroe has built a strong portfolio position in Norway, where exploration benefits materially from tax rebates provided by the state to support and encourage exploration in the country.

"In the meantime Faroe's strong balance sheet means we are well prepared to weather the continuing period of low commodity prices, and are seeking to capitalise on our position to pursue consolidation opportunities in our core areas on the UK and Norwegian continental shelves."

StockMarketWire.com
Faroe Petroleum's main fields exceeded forecasts in the year to the end of December but revenues fell due to lower commodity prices.

Total average economic production rose to 10,530 barrels of oil equivalent per day (2014: 9,106 boepd) but revenue (excluding hedging gains) fell to GBP113.0 million (2014: GBP28.8 million).

EBITDAX rose to 60.4 million (2014: GBP59.1 million). This includes realised hedging gains of GBP9.3 million (2014: GBP0.5 million). General and administrative expenses were reduced and the loss after tax fell to GBP52.9 million (2014: GBP55.0 million) after pre-tax impairment charges of GBP45.1 million (2014: GBP38.5 million) and exploration write-offs of GBP83.6 million (2014: GBP131.7 million).

Chief executive Graham Stewart said: "2015 was another year of growth and good progress for Faroe despite a backdrop of significantly lower commodity prices. We delivered our exploration drilling programme safely and under budget, adding further material 2C resources, and doubled our 2P reserves in high quality assets, principally in Norway. Our diverse North Sea production portfolio also outperformed expectations, averaging 10,530 boepd with lower unit operating costs of $23 per boe, down by 30% from the previous year.

"We stated a year ago that we would aim to run a cash-neutral budget for 2015 and we are pleased to end the year with cash of £91.5 million (2014: £92.6 million) after drilling five exploration wells and acquiring further interests in the Blane and Enoch production assets in the UK. This outcome is testament to the quality of our portfolio and our consistently prudent financial management, in what remains a very difficult market.

"Looking ahead to 2016, the business is in a good position to face the continuing challenges of our industry and to seek to capitalise on our relative financial strength as we pursue attractive consolidation opportunities in our core areas on the UK and Norwegian continental shelves."

StockMarketWire.com
Faroe Petroleum has confirmed that drilling has started on the Brasse exploration well 31/7-1 in the Norwegian North Sea.

Faroe is operator and has a 50% interest.

The Brasse prospect is located immediately south of the producing Brage oil field (Faroe 14.3%) and, if successful, could be tied-back to the Brage facilities or alternatively to other nearby installations.

The well will target the Jurassic aged sandstones in a four-way dip-closed structure with a total vertical depth of approximately 2,750 metres in the Early Jurassic Statfjord Formation.

The water depth at the site is 118 metres and the well will be drilled using the semi-submersible Transocean Arctic drilling rig. The co-venturer in the PL740 licence is Core Energy AS (50%). Chief executive Graham Stewart said: "I am pleased to announce the spudding of the Faroe-operated, Brasse exploration well located in close proximity to our producing Brage oil field. This is a near field exploration target which provides significant upside potential to Faroe, in one of our core areas. On a post-tax basis the well is expected to cost Faroe less than £2 million."

StockMarketWire.com
Faroe Petroleum has completed a successful side-track appraisal well on the Brasse discovery in licence PL740 in the Norwegian North Sea (Faroe 50% and operator). The objective of the Brasse side-track well (31/7-1A) was to appraise the south-eastern part of the hydrocarbon bearing structure previously identified by the main discovery well. The Brasse side-track reached a total depth of 2,530 metres (MD) and encountered a 25 metre gross oil column and a 6 metre gross gas column.

Results based on extensive coring, wireline logging and sampling show that the well has encountered oil and gas in good quality Jurassic reservoir sandstones, similar to those seen in the main well, and provide important information about the reservoir distribution in Brasse.

The hydrocarbon-bearing interval in the side-track well was found to be at a similar pressure level to the hydrocarbon-bearing interval in the initial discovery well. Total gross volumes of recoverable hydrocarbons are estimated to be 28-54 mmbbls of oil and 89-158 bcf of gas (43-80 mmboe in aggregate). As already announced, the Brasse discovery well (31/7-1) encountered approximately 21 metres of gross oil-bearing and approximately 18 metres of gross gas-bearing Jurassic reservoir. The reservoir is of good quality and believed to be analogous to the effective reservoir at the Brage producing oil field (Faroe 14.3%). The Brasse discovery is located within tie-back distance to existing infrastructure: 13 kilometres to the south of the Brage field platform, in which the Company holds a 14.3% working interest, 13 kilometres to the east of the Oseberg Sor field platform, and 13 kilometres to the south east of the Oseberg field platform. Faroe and its co-venturer (Point Resources AS (50%)) will now begin assessing options for this discovery, located in one of Faroe's core areas in the Norwegian North Sea.

Chief executive Graham Stewart said: "We are very pleased to announce the results of this successful side-track appraisal well on the Brasse discovery, which proves the hydrocarbon and reservoir distribution found in the main discovery well and delineates the lateral extent of the discovered area. This discovery, in one of our core areas, builds, via this low cost exploration and appraisal well, on Faroe's already significant position in the Norwegian North Sea. Work will now begin on assessing options for monetising this important new asset, given its significant resource estimates and close proximity to existing infrastructure."

Barclays Capital today reaffirms its equal weight investment rating on Faroe Petroleum PLC (LON:FPM) and raised its price target to 100p (from 85p).

StockMarketWire.com
Faroe Petroleum (FPM) raised gross proceeds of £62 million at a price of 70p per share.

More than 88 million new shares in Faroe were placed.

The placed shares will represent, in aggregate, approximately 24.8% of Faroe's issued ordinary share capital immediately following admission.

The shares will, when issued, be credited as fully paid and rank pari passu with the existing shares, including the right to receive all future dividends and distributions declared, made or paid.

Faroe Petroleum chief executive Graham Stewart said: "I am delighted to announce the successful completion of this oversubscribed placing which has enabled us to acquire a high value portfolio of producing assets in one of our core strategic areas offshore Norway.

"As well as providing the funds for the acquisition, the placing proceeds will allow us to progress our recently announced Brasse discovery towards monetisation.

"I would like to thank our shareholders for their unerring support for our business and I would also like to welcome the new shareholders to the company.

"With the new funds in hand, coupled with our strong balance sheet and cash generative production portfolio, Faroe is now set on a pathway of becoming an independent E&P company of scale, with material upside potential both in terms of drill-bit leverage as well as the progression of our high quality discovered resource base towards commercialisation."

StockMarketWire.com
Faroe Petroleum has announced the start of the Njord North Flank-2 exploration well 6407/7-9 S in the Norwegian Sea. (Faroe 7.5%).

The NF-2 prospect is located in Licence PL107C immediately north of the Njord field (Faroe 7.5%). The well will target Middle and Lower Jurassic sandstone reservoirs of the Ile and Tilje formations in a fault-bounded structural closure, with a TD in the Lower Jurassic �re Formation. If successful, NF-2 could add further reserves and value to the Njord Future Project. The NF-2 exploration well, located in approximately 323 metres of water, is operated by Statoil Petroleum AS (20%) using the Songa Delta drilling rig, with co-venturers ENGIE E&P Norge AS (40%), DEA E&P Norge AS (30%) and VNG Norge AS (2.5%). Results from the well will be announced when drilling operations have been completed.

Faroe Petroleum also announced that it has conditionally acquired interests in five Norwegian producing assets from DONG including a 20% interest in the Ula field and associated production hub infrastructure. One of the conditions of the acquisition was a 30 day pre-emption period under which the partner in the Ula Field could have acquired the Interest. This period has now expired and the Company will now proceed towards the completion of the acquisition as planned.

Jefferies International today initiates coverage of Faroe Petroleum PLC (LON:FPM) with a buy investment rating and price target of 100p.

Barclays Capital today reaffirms its equal weight investment rating on Faroe Petroleum PLC (LON:FPM) and raised its price target to 100p (from 85p)

StockMarketWire.com
Faroe Petroleum has signed two banking facilities which, it says, will provide substantial finance to underpin the company's growth plans.

The two facilities are:
- US$250 million (approx. £200 million) reserve base lending facility. This facility is available to finance the relevant assets and approved capital expenditure, operating costs and acquisitions. In addition to the committed US$250 million, a further US$100 million is available on an uncommitted 'accordion' basis. This RBL has a 7-year final maturity (December 2023), with an amortising schedule from January 2020 and replaces Faroe's existing RBL facility which matures on 30 June 2018. The company currently has no loans drawn under the RBL facility.

- NOK1 billion (approx. £92.5 million) Norway exploration financing facility. This facility has the capability to finance the majority of Faroe's exploration and appraisal costs on the Norwegian Continental Shelf. In addition to the committed NOK1 billion, a further NOK0.5 billion is available on an uncommitted 'accordion' basis. The availability period of the facility is to 31 December 2019.

The facilities have been provided by BNP Paribas, BMO Capital Markets, Commonwealth Bank of Australia, Danske Bank, DNB Bank, ING, Royal Bank of Scotland, SEB, SR-Bank and Wells Fargo. Rothschild and Pinsent Masons advised the Company and Watson Farley Williams advised the banks.

Chief executive Graham Stewart said: "We are very pleased to have concluded this financing exercise, and to have received such strong support from both our existing bank syndicate and new lenders. The new facilities provide us with substantial funding to support the continuing growth of the Group and the financing of our development assets.

"The combination of existing cash, these new credit facilities and cash flow from the Company's significantly enhanced portfolio of producing assets, ensures that we are funded to take advantage of the material development upside in our portfolio and continue to invest in our value enhancing exploration programme on the Norwegian continental shelf."

StockMarketWire.com
Faroe Petroleum has announced the start of the Boné exploration well 7318/12-1 (Faroe 20%) and the decision to drill an appraisal well on the Brasse discovery in the 2017 drilling programme.

Licence PL716, which contains the Boné prospect (previously named Dazzler), is located in the western part of the Norwegian Barents Sea in a similar structural setting to the Johan Castberg discovery.

The primary targets for the well are the Jurassic Stø- and Nordmela sandstones with a secondary target within the Triassic Fruholmen and Snadd sandstone formations.

Licence PL716 was awarded to Faroe in June 2013 in the Norwegian 22nd Licensing Round together with co-venturers Eni Norge AS (30% and operator), Bayerngas Norge AS (20%), Petoro AS (20%) and Point Resources AS (10%). The Boné well is being drilled using the Scarabeo 8 drilling rig and the results will be announced when drilling operations are complete.

Faroe Petroleum also announced that the Licence PL740 partnership has committed to the drilling of an appraisal well on the Brasse discovery in mid-2017 (Faroe 50%).

Faroe as operator has entered into a contract with Odfjell Drilling for the use of the semi-submersible drilling rig, Deepsea Bergen, for the drilling operations. Faroe announced the Brasse oil and gas discovery in PL740 in July 2016. The main wellbore 31/7-1 encountered an 18 metre gross gas column and a 21 metre gross oil column, and the sidetrack well (31/7-1A) encountered a 6 metre gross gas column and 25 metre gross oil column, with both wells encountering good quality Jurassic reservoir.

Total gross volumes of recoverable hydrocarbons have been estimated by the Company to be 28-54 mmbbls of oil and 89-158 bcf of gas (43-80 mmboe gross in aggregate). The main objectives of the appraisal well are to reduce the uncertainty in the reserves estimates and to provide important additional information for the development project.

The Brasse discovery is located within tie-back distance to existing infrastructure: 13 kilometres to the south of the Brage field platform, in which the Company holds a 14.3% working interest and 13 kilometres to the south east of the Oseberg Field Centre.

Chief executive Graham Stewart said: "We are very pleased to announce the spudding of Boné, our first exploration well in 2017, located 90 kilometres to the northwest of the Johan Castberg discovery. This high impact well will test a large horst structure with very significant volume potential.

"We are also pleased to announce the forthcoming appraisal well on the Brasse licence which will serve to mature this discovery towards development. Together with Point Resources we are progressing feasibility studies which will be ongoing in parallel with the appraisal project.

"2017 will be another significant year for Faroe. We have a very full programme ahead of us in our core areas including exploration, appraisal, infill drilling and early stage development activity. Coupled with our strong production profile, solid cash position and recently increased and substantially undrawn debt facilities, we look forward to another period of growth across the business."

StockMarketWire.com
Faroe Petroleum has been awarded four new prospective exploration licences, including two operatorships, under the 2016 Norwegian Awards in Pre-defined Areas Licence Round on the Norwegian Continental Shelf.

The company has been awarded three new licences in the Norwegian North Sea area. These are:

- Licence PL740 B Brasse extension - Block 31/4 and 31/7: Faroe (50% and operator), Point Resources (50%): The possible northward extension of the Brasse Discovery on the eastern side of the Brage Field.

The work programme is the same as the existing PL740 Brasse licence (Faroe 50%).

- Licence PL870 Pabow - Blocks 25/6, 9, 26/7: Faroe (20%), Statoil (80% and operator). The Pabow Prospect is located on the edge of the Stord Basin, just East of the Shango licence (Faroe 20%).

The main prospect is a large stratigraphic closure of Upper Jurassic Ula reservoir sands.

The work programme consists of G&G studies before a drill or drop decision in 2018.

- Licence PL881 Goanna - Block 33/9: Faroe (30%), Wellesley Petroleum (70% and operator): The Goanna Prospect is located on the Tampen Spur on the north-western margin of the North Viking Graben.

It is a structural and stratigraphic prospect of Upper Jurassic age sandstones, updip of well 33/9-16. The work programme involves the acquisition of 3D data and a drill or drop decision by 2018.

The company has also been awarded one new licence in the Norwegian Sea area:
- Licence PL888 Canela - Blocks 6507/7: Faroe (40% and operator), ConocoPhillips (30%), Wellesley Petroleum (30%).

The license is located on the Revfallet Fault Complex on the Halten Terrace.

The Canela prospect consists of down faulted blocks west of the producing Heidrun Field.

Reservoirs are expected to be the same Fangst group sands as found in the Heidrun Field.

The work programme consists of the acquisition or reprocessing of 3D seismic ahead of a drill or drop decision in 2019.

Chief executive Graham Stewart said: "We are very pleased to announce the award of four important new licences in the latest Norwegian licensing round.

"We have added new exploration plays to our portfolio as well as consolidating our position around the high quality 2016 Brasse discovery which we will be appraising later in 2017.

"We look forward to integrating these new licences into the exploration portfolio. The addition of good quality exploration acreage, our enhanced production portfolio and development pipeline ensures that we continue to expose our shareholders to balanced but high impact growth opportunities."

StockMarketWire.com
Faroe Petroleum's 2P reserves rose by 42% to 81.3mmboe at the start of January - up from 57.4 mmboe at the beginning of 2016.

It said the significant increase (reserves replacement of approximately 5 times) was a result of both the acquisition of interests in the Norwegian Ula, Tambar, Trym and Oselvar producing fields and positive reserve revisions.

2C contingent resources were 7.5% lower at 90.9 mmboe (1 Jan-16: 98.3 mmboe) reflecting the addition of new resources from the 2016 Brasse discovery which in part compensated for the reduction in resources associated with the respective withdrawal and relinquishment of interests in the Perth, Lowlander, Tornado and Solberg licences.

Chief executive Graham Stewart said: "2016 was transformational for Faroe with the acquisition of a Norwegian portfolio of producing assets from DONG doubling group production, the material Brasse discovery in Norway, and a successful £66m equity fund raise.

"Production from our UK/Norwegian portfolio averaged approximately 17,400 boepd in 2016, and we increased our 2P reserves base by 42% to 81 mmboe.

"We ended the year with a significant cash position of £97million and a new seven year Reserve Based Lending facility of $250million which is undrawn.

"We are now poised for a major growth phase as we invest across our core hub assets in 2017 and beyond, and believe that we have the asset base to reach our stated goal of 40-50,000 boepd over the next five years.

"We continue to seek to capitalise on our strong financial position to pursue consolidation opportunities in our core areas on the UK and Norwegian continental shelves, while kicking off another exciting high impact exploration drilling campaign."

The Oil Man: Oil price, Faroe Petroleum - By Malcolm Graham-Wood | 10th February 2017

The oil price is marginally down on the week but little has happened. The inventory figures may have signalled panic, but were rescued by the gasoline draw helped by lower refinery runs but better signs of growth in the economy. A very slight thaw in the Donald's attitude towards China is detected but don't bet the house on it.

Company news has been very thin this week which is good as I have had a load of company meetings which you will see being written up during next week.

Faroe Petroleum

An operations update from Faroe (FPM) today and as expected all is going well. Production is down but as expected due to Njord and Hyme outage and a small time at Trym where Harald takes priority on lifts. Operational expenditure (opex) is $24 which is good but will rise this year due to the lower production, reserves are up, 2P is now 81.3 million barrels of oil equivalent (mboe).

At ODA all kit is ordered, taking advantage of current low costs and at Tambar we can expect up to 5 wells on site by 2018. The new APA licence awards give a pleasing mixture of near and longer term as well as higher and lower risk and reward.

Financially, they have £97 million of cash and with the new RBL and EFF arrangements with 10 banks new and old, undrawn and leaving them with all options covered. Being in such a strong position means that the company can look for further acquisition opportunities and the company point out that they are full of ambition and keen to accelerate the pace of growth.

So, everything in the garden is rosy and management and shareholders can sleep easily at night, or can they?

Delek Group holds 20% of the shares and having just got a recommended offer through on the cheap from Ithaca (IAE) I hope that should the same thing happen here management wouldn't surrender with as little determination as did the Ithaca board.

FPM remains right up there as one of the best in the sector, with exceptional management, a strong balance sheet with scope, and a cracking portfolio at all stages of the cycle, let's hope it can remain independent and of course, go Dazzler!

StockMarketWire.com
Faroe Petroleum has confirmed that the Bone exploration well in the Barents Sea has been plugged an abandoned.

Faroe chief executive Graham Stewart said: "While we are disappointed that no hydrocarbons were present in the Realgrunnen section at this frontier location, the well provides important new data and information which will allow further evaluation of this extensive licence in the Barents Sea province.

"Our 2017 drilling programme continues with plans progressing well for the appraisal of the 2016 Brasse discovery this summer, which will be operated by Faroe.

"We are also maturing a number of exciting new drilling targets in Norway with potential to take advantage of the continuing low drilling costs."

Faroe said the Bone well had been drilled to a total depth of 3,501 metres.

The well encountered approximately 106 metres of gross water bearing reservoir in the primary target, the Realgrunnen Group.

Data acquisition and sampling had been undertaken including logging and water sampling.

The well was operated by Eni using the Scarabeo 8 drilling rig.

The well is part of licence PL716 which was awarded to Faroe (20%) in June 2013 in the Norwegian 22nd licensing round together with co-venturers Eni Norge AS (30% and operator), Bayerngas Norge AS (20%), Petoro AS (20%) and Point Resources AS (10%).

21 March 2017
FAROE PETROLEUM PLC

Final Results for the Year Ended 31 December 2016

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, announces its audited results for the year ended 31 December 2016.

Highlights
Operations - record production and reserves growth
· Strong production performance and significant reserves growth
o Total average economic production1 for 2016 at 17,395 boepd (2015: 10,530 boepd) - ahead of guidance mainly due to the newly acquired interests in the Norwegian Ula, Tambar, Trym and Oselvar producing fields which performed ahead of expectation
o Balanced product mix of approximately 58% liquids and 42% gas
o Average economic operating cost per boe1 in line with prior year at $25 (2015: $23)
o 2P Reserves increased by 42% with closing reserves at 81.3 mmboe (2015: 57.4 mmboe) - reflecting the acquisition of further producing assets and positive reserves revisions on existing assets
· Exploration success, adding material 2C Contingent Resources
o 2C Contingent Resources were 90.9 mmboe (2015: 98.3 mmboe) - new high quality resources were added by the 2016 Brasse discovery, largely offsetting the reduction in resources following relinquishment and withdrawal from the Perth, Lowlander, Tornado and Solberg licences
o Norwegian North Sea drilling: significant Brasse oil and gas discovery (Faroe 50% and operator) estimated at 43-80 mmboe (gross) in good reservoir located near Brage and Oseberg production facilities - appraisal scheduled for summer 2017
o Norwegian Sea drilling: discovery on Njord North Flank (Faroe 7.5%) exploration well and side-track with estimated resource range 2-28 mmboe gross
o Norwegian Barents Sea drilling: dry well with the Kvalross frontier exploration well (Faroe 20%)
o Six APA licences awarded in Norway in January 2016 and one licence option (Faroe 100% and operator) located close to the producing Corrib field, awarded offshore Ireland in July 2016

Financial - equity fund raise and new 7-year Reserve Based Lending ("RBL") facility ensure robust balance sheet
· Unrestricted cash and net cash of £96.8 million at 31 December 2016 (31 December 2015: £91.5 million cash and £68.5 million net cash) - with no drawn RBL debt (2015: £23.0 million drawn)
· Raised £66.1 million, before expenses, in share placing and open offer in July and August 2016, to fund the acquisition from DONG of producing assets and accelerate the new Brasse discovery towards development
· New, four-year NOK1 billion Exploration Financing Facility ("EFF") and seven-year $250 million (and a further $100 million accordion) RBL facility secured in December 2016 on improved terms with existing and new lenders
· Revenue (excluding hedging gains) of £94.8 million (2015: £113.0 million) - reduction reflects lower accounting production (revenue from the acquired DONG assets between the effective date and completion date reduced the final cash consideration paid on 6 December 2016 from $70.2 million to a net $30.4 million)
· EBITDAX £25.8 million (2015: £60.4 million), includes realised hedging gains of £4.7 million (2015: £9.3 million) classified as Other Income - reflecting lower revenue, lower realised hedging gains and higher opex
· Loss after tax of £32.8 million (2015: £52.9 million) after pre-tax impairment charges of £2.8 million (2015: £45.1 million) and exploration write-offs of £29.9 million (2015: £83.6 million)
· Pre-tax exploration and appraisal capex of £47.5 million (£12.1 million post-tax) (2015: £61.9 million pre-tax, £14.8 million post-tax) and development and production investments (including acquisitions) of £32.8 million (2015: £38.7 million)


Outlook - high quality investment programme progressing to deliver material organic production growth
· FDP submitted on Oda oil field (Faroe 15%) and FDP submission on Njord Future Project, including Bauge development (Faroe 7.5%) scheduled for March 2017 - other pre-development projects being matured towards development decisions
· Investment programme to increase production from existing fields progressing - installation of gas lift and infill well programme of two wells on Tambar (Faroe 45%) being planned for 2017/18 and infill drilling re-commencing on the Brage field (Faroe 14.3%) in April 2017
· Development and production capex for 2017 is estimated to be approximately £90 million (2015: £32.8 million) - funded from cash reserves, cashflow and RBL facility
· Production guidance for 2017 narrowed to 13,000-15,000 boepd (previous guidance 12,000-15,000 boepd), split 60% liquids and 40% gas - the decrease on 2016 reflects production interruptions due to infill drilling and other production enhancing work in 2017, Njord and Hyme temporary shut-in, and natural production decline
· Currently two firm exploration and appraisal wells in 2017 in Norway (Boné frontier exploration well and Brasse appraisal well) with potential for further additions, all benefiting from Norway's 78% exploration tax rebate
· Committed exploration and appraisal capex in 2017 estimated to be approximately £45 million pre-tax (£11 million post-tax) (2016: £12.1 million post-tax) - fully funded by existing cash and the EFF
· 90% of 2017 and 40% of 2018 expected post-tax gas production hedged at average floor of 41p/therm and 30% of 2017 post-tax oil production hedged at an average floor of $54 per barrel
· Well positioned to capitalise on market conditions to add value through further selective asset acquisitions


Graham Stewart, Chief Executive of Faroe Petroleum, commented:
"2016 was transformational for Faroe with the acquisition of a significant Norwegian portfolio of producing assets which doubled Group production and added material reserves, the material Brasse discovery in Norway, and a successful £66 million equity fund raise. Production from our UK & Norwegian portfolio averaged approximately 17,395 boepd in 2016, and we increased our 2P reserves base by 42% to 81 mmboe. Ending the year with a significant cash position of £97 million and a new undrawn seven year Reserve Based Lending facility of $250 million puts Faroe in a strong position.

"With our hub area focus, centered principally around the Ula, Njord and Brage areas, Faroe is now in position for a major growth phase as we take advantage of low industry costs and invest across our core assets in 2017 and beyond. We believe that we have the asset base to reach our stated goal of 40-50,000 boepd organically within the next five years, with robust economics even at low commodity prices. We will also continue to seek to capitalise on our strong financial position to pursue further consolidation opportunities on the Norwegian and UK continental shelves, while maintaining our focus on high impact exploration and appraisal drilling."

StockMarketWire.com
Faroe Petroleum said its Brasse appraisal well has proved the presence of an excellent hydrocarbon bearing reservoir to the south of the original discovery.

The Faroe-operated well (31/7-2S) has been drilled to a total depth of 2,450 metres, targeting a seismic anomaly approximately two kilometres to the southeast of the main discovery well (31/7-1 announced July 2016).

Faroe said the appraisal well - a 50-50 joint venture with Point Resources - successfully penetrated the oil-water contact on the flank of the Brasse field and encountered approximately 8.5 metres of gross oil-bearing Jurassic reservoir above the oil water contact.

It said preliminary results based on extensive coring, wireline logs and pressure data showed that the well had encountered oil in a sand rich reservoir of very good quality.

It said preliminary analysis confirmed the same oil-water contact as in the 31/7-1 discovery well and side-track and indicated good pressure communication within the reservoir. It said the joint venture had now committed to perform a drill stem test for further confirmation of well productivity, investigation of reservoir distribution and to provide important additional information for development project planning.

Faroe said advanced pressure gauges, which communicate with surface after the well has been plugged and abandoned, would be installed in the 31/7-2S appraisal well to provide long term pressure monitoring of the reservoir. It said the joint venture would shortly decide on whether to drill a potential side-track to the current well (31/7-2S).

The joint venture would also decide on whether to drill a potential second appraisal on the Brasse discovery later this year, dependent upon further analysis of the 31/7-2S well and DST results.

Faroe said evaluation work on the recently awarded prospective Brasse Extension area (Faroe 50% and operator) also continued, ahead of a potential decision to drill in 2018.

Chief executive Graham Stewart said: "We are very pleased to announce the results of this important appraisal well which firms up the southern extent of the Faroe-operated Brasse field.

"This well proves the presence of excellent hydrocarbon bearing reservoir to the south of the original discovery and data gathered and yet to be gathered from the forthcoming DST will provide key information as we continue to progress towards development sanction.

"Importantly, preliminary analysis of the well results confirms Brasse as a commercial discovery.

"Brasse is a significant project for Faroe and the region and it also highlights Faroe's ability to continue to add significant value through low-cost drilling in our core areas.

"While continuing with an exciting ongoing exploration programme in Norway, Faroe is also actively investing in pre-development and development of several of our own discoveries, each of which has the potential to transform the value of the company in the coming years."

StockMarketWire.com
Faroe Petroleum's output averaged 15,100 barrels of oil equivalent in the five months to the end of May with better-than-forecast performance from the main producing fields in the portfolio.

An update issued ahead of today's annual general meeting showed that cash increased to £113.8m (unaudited) at 19 June 2017 from £96.8m at 31 December.

The company also said it had an undrawn reserves based lending credit facility of $250m (plus $100m accordion).

Chief executive Graham Stewart said: "I am pleased to report that Faroe Petroleum is performing very well across its range of activities, with strong production performance in the first five months averaging 15,100 boepd, appraisal success on the Brasse discovery, a growing low cost exploration and appraisal programme and significant progress on our development projects.

"The Company has also delivered good financial performance with strong cash flow, improved cash reserves and an undrawn Reserve Based Lending facility of $250 million - this ensures we have significant financial flexibility going forward.

"I am particularly encouraged, that as we enter the second half of 2017, alongside the excellent progress made across our production and development portfolio, we have been able to increase further the level of low cost and high impact activity in our exploration and appraisal portfolio, with the addition of the Goanna and Fogelberg wells later this year, as well as the farm-out to Nexen, for a full cost carry, on the East Corrib licence west of Ireland.

"With our focused strategy, centered principally around realising value from both our considerable exploration success and M&A success, Faroe is now in position for a major growth phase as we take advantage of low industry costs and invest across our core assets in 2017 and beyond.

"We believe that we now have the asset base to reach our stated goal of increasing production to over 40,000 boepd organically within the next five years, with robust economics even at low commodity prices.

"Looking ahead, while we actively pursue our organic programme, we will also continue to seek to capitalise on our strong strategic and financial position to pursue further consolidation opportunities on the Norwegian and UK continental shelves."

StockMarketWire.com
Faroe Petroleum has confirmed a successful drill stem test on the 31/7-2 S Brasse appraisal well in the Norwegian North Sea.

Faroe said the well flowed at a maximum stable rate of 6,187 bpd of oil which provided clear evidence of highly prolific reservoir and excellent quality sands with multi-Darcy permeability at the appraisal well location.

Other highlights:
- High quality light crude: similar quality crude to the nearby producing Brage field (Faroe 14.3%)

- Test free of undesirables: no undesirable components detected during the test which was free of sand and water

- Side-track next: a side-track well to be drilled following DST to further appraise reservoir distribution

- Volumes update to follow side-track: an update estimated range of recoverable resource volumes will be announced upon completion of the side-track

Chief executive Graham Stewart said: "We are very pleased to announce the results of this successful, Faroe-operated, drill stem test on the Brasse field, which significantly de-risks further upside in this reservoir and the licence area as a whole.

"The outstanding flow rates and reservoir quality confirmed by this well, located at the periphery of the Brasse field, are very good news and provide valuable information for our planning of the Brasse development project.

"We now look forward to the results of the imminent side-track with the objective of proving up further potential on this licence.

"The significant positive progress on Brasse to date is an excellent result from Faroe's world class exploration and drilling team and further validates our decision to take material stakes in selective high-impact exploration prospects, offering significant value upside to our shareholders."

Faroe operates the field with 50% equity together with Point Resources (50%).

Shares look undervalued @ 76.50p, but the charting front is against it at the moment
50 days MA has crossed down 200 days MA recently

Some large spikes at opening, still no direction

StockMarketWire.com
Faroe Petroleum's has announced the successful completion of the appraisal programme of the Brasse field which had considerably exceeded expectations and further confirmed the commerciality of the discovery.

Faroe said the Brasse appraisal well sidetrack 31/7-2A was drilled to a total depth of 2,275 metres TVDSS, targeting the reservoir 1.0 kilometre to the west of the appraisal well (31/7-2 announced on 13 June 2017) and 2.4 kilometres to the south of the main discovery well (31/7-1 announced on 16 June 2016).

It said: "An extensive data acquisition programme was carried out in the 31/7-2A sidetrack, including the cutting of cores together with a full suite of wireline logs and fluid samples.

"The sidetrack well successfully penetrated the gas-oil contact and the oil-water contact in the southern part of the Brasse field and encountered approximately 18 metres of gross oil-bearing and 4 metres of gross gas bearing Jurassic reservoir above the oil water contact.

"Preliminary results show that the well has encountered oil in a sand-rich reservoir of very good quality with the same oil-water contact as in the discovery well (31/7-1) and in the main bore of the appraisal well (31/7-2).

"The pressure data indicates good pressure communication within the reservoir."

"Based on extensive data collected from the initial discovery well, initial sidetrack, appraisal well (with drill stem test) and the appraisal well sidetrack, the total gross volumes of recoverable hydrocarbons for the Brasse field have been revised up to 46-76 mmbbls of oil and 59-97 bcf of dry gas (56-92 mmboe in aggregate)."

The appraisal well will now be plugged and abandoned as planned.

The Brasse field discovery was made by Faroe in 2016 and is located within tie-back distance to existing infrastructure: 13 kilometres to the south of the Wintershall-operated Brage field platform, in which the Company holds a 14.3% working interest and 13 kilometres to the south east of the Statoil-operated Oseberg Field Centre.

Chief executive Graham Stewart said: "We are very pleased to announce the completion of this successful, Faroe-operated, appraisal programme of the Brasse field, which considerably exceeded expectations and further confirms the commerciality of this discovery.

"The programme has established excellent reservoir quality and reservoir communication, together with excellent flow rates, even at the periphery of the field.

"This new data has resulted in an increased resource range to 56-92 mmboe and a substantial increase to flow rate expectations.

"The Brasse field is clearly a very significant and valuable asset, with very attractive economics even at long term low commodity prices.

"The close proximity of the field to existing competing infrastructure combined with its prolific reservoir qualities and shallow water depth ensure this field can be developed expediently, taking full advantage of the current low cost environment.

"As an established E&P operator, Faroe is well equipped to progress this important project and we look forward to providing further progress updates in the coming months."

StockMarketWire.com
Faroe Petroleum has announced the conditional acquisition of a further 13.9935% interest in the Blane field in the UK North Sea from JX Nippon Exploration and Production (UK) Limited for a total consideration of $5.25 million.

The acquisition is subject to UK regulatory approval, the approval of the Blane joint venture partners and the resumption of production after the completion of certain scheduled sub-sea works this summer.

Blane was discovered in 1989, and is located on the Central Graben of the UK continental shelf, extending into the Norwegian sector.

Production commenced in September 2007 from a Tertiary Palaeocene Forties sands reservoir with a structural closure.

The field has been developed as a sub-sea tie-back to the Ula platform (Faroe 20%), located on the Norwegian continental shelf (34 kilometres to the north east), and currently comprises two horizontal production wells with gas lift and one water injection well.

The Blane field is operated by Repsol Norge AS and the other joint venture partners are Dana Petroleum (BVUK) Limited and Repsol Sinopec Resources UK Limited.

Faroe Petroleum chief executive Graham Stewart said: "We are pleased to announce this acquisition, which further increases our stake in this low cost, high quality and long life asset and at a fair value of $5.0 per boe.

"Raising our stake again in Blane, offers significant upside potential as we realise synergies through Blane's use of our key Ula hub; increasing net production, reducing average operating costs, increasing profitability and providing access to further reserves potential from the field.

"The transaction is also very tax efficient for us, providing shelter for both past and future tax losses in the UK.

"Faroe continues to advance a number of key projects in and around the Ula hub area, all of which will serve to extract greater value from this particular deal through improved operating synergies."

StockMarketWire.com
Faroe Petroleum has confirmed the spudding of the Goanna exploration well 39/9-22 S in licence PL 881.

The Goanna licence is located in the northern part of the Norwegian North Sea, near the border with the UK and adjacent to the giant producing Statfjord and Snorre fields, which offer the potential for alternative export routes.

The Goanna prospect straddles the border between PL 881 and PL 037, and the well will target a structural and stratigraphic prospect of Upper Jurassic Munin Formation sandstones.

Faroe's associated costs of drilling this well will be fully carried by its joint venture partner up to the budgeted dry hole cost.

Licence PL881 (Faroe 30%) was awarded in February 2017 as part of the APA16 licence round and is operated by Wellesley Petroleum (70%).

The semi-submersible drilling rig, Deepsea Bergen, will be used for the drilling operations.

Results will be announced when operations have been completed.

StockMarketWire.com
Faroe Petroleum said it was disappointed that no hydrocarbons were present in the Goanna prospect but results provided important new data which allowed further evaluation of this new area.

Drilling reached the target depth on the exploration well 33/9-22 S (Faroe carried interest 30%) in licence PL 881.

Faroe said the Goanna well, which had been drilled to a total depth of 2,730 metres, encountered approximately 49 metres of gross water bearing reservoir in the primary target, the Upper Jurassic Munin Formation sandstones.

It said data acquisition including logging and pressure points had been carried out.

Faroe said the Goanna exploration well, operated by Wellesley Petroleum (70%) using the semi-submersible drilling rig Deepsea Bergen, was now being plugged and abandoned as planned.

It said the well cost was expected to come in below budget and as such Faroe's associated costs would be fully carried by its joint venture partner.

Chief executive Graham Stewart said: "While we are disappointed that no hydrocarbons were present in the Goanna prospect, the well provides important new data and information which will allow further evaluation of this new area for Faroe, and in addition the company's associated drilling costs have been fully covered.

"Our exploration programme continues with the Iris/Hades (Aerosmith) exploration well and Fogelberg appraisal well scheduled for the end of the year and the beginning of 2018, taking advantage of low drilling costs and Norwegian tax incentives."

Slowly rising again.....

StockMarketWire.com
Faroe Petroleum's revenues rose to £80.1m in the six months to the end of June - up from £23.1m last time.

The group said this reflected higher accounting production as a result of the DONG asset acquisition completed in December 2016.

EBITDAX increased to £44.0m (H1 2016: £16.7m) - including net income of £10.4m in relation to Oselvar compensation payments received and made following Oda PDA approval.

Operating losses fell to £0.3m (H1 2016: £34.3m ) and after-tax losses narrowed to £2.9m (H1 2016: £13.0m) - reflecting higher revenue and higher other income.

Chief executive Graham Stewart said: 'I am pleased to report that Faroe Petroleum is performing ahead of expectation across its range of activities, despite continuing low oil prices.

'Faroe benefited from a number of positives in the period including: strong production performance in H1 2017, averaging 14,800 boepd; appraisal success on the Brasse discovery, increasing our recoverable resource range; a growing low cost exploration and appraisal programme; significant progress on our organic development projects; the acquisition of a further 14% interest in the Blane field (announced in July 2017); and rapid payback achieved on the DONG deal within 6 months of completion.

'Faroe now has a strong and diversified asset base with a clear path to increase profitable production to over 40,000 boepd within the next five years, with robust project economics even at low commodity prices.

'The Brasse field is clearly a standout project for Faroe.

'Brasse was applied for, drilled, discovered and appraised by our team.

'We now move forward to the exciting phase of planning its development, in the knowledge that the significant resources in this prolific reservoir have considerable value, particularly given their shallow water location close to competing process and export infrastructure.

'Gross plateau flow rates for this field have the potential to exceed 30,000 boepd, with first production scheduled for 2020/21.

'The Company has delivered good financial performance in H1 2017 with strong cash flow, improved cash reserves and an undrawn RBL credit facility of $250 million, ensuring significant financial flexibility going forward as we progress our development and exploration programmes simultaneously.

'Looking ahead, while we actively manage our organic programme, we will seek to continue to capitalise on our strong strategic and financial position as we pursue further attractive and value accretive M&A opportunities.'

Barclays Capital today reaffirms its overweight investment rating on Faroe Petroleum PLC (LON:FPM) and cut its price target to 110p (from 115p).

StockMarketWire.com
Faroe Petroleum has announced that drilling operations have started on the Tambar development project in the producing Tambar field in Norway.

Faroe - which has a 45% interest - said that gas produced by the Tambar field would be transported to and reinjected into the Ula field (Faroe 20%) as part of its successful ongoing water alternating gas injection scheme, which was expected to generate additional production over the life of the Ula field.

The Tambar development project consists of two new infill wells and the installation of gas lift in three existing wells to increase overall field production.

It said the infill wells, which were being drilled by the Maersk Interceptor drilling rig, would target undrained areas of the field identified in the north and south with the potential to increase 2P reserves further.

It said the combination of the infill wells and installation of gas lift had the potential to increase Tambar production markedly and extend field life by up to 10 years, contributing to lower unit operating costs in the Ula hub area.

Chief executive Graham Stewart said: 'I am pleased to announce the commencement of the high impact work programme on the Tambar field.

'The joint venture sanctioned the project in April this year and it has been a great achievement by the operator to mobilise the rig and commence drilling operations within such a short space of time.

'Drilling operations are now expected to continue to the end of Q1 next year, and it is hoped that the two new wells will be brought on stream before the end of April 2018.

'The significance of this work programme is not only the impact on reserves and production but it also shows our ability to drive value and upside potential from the existing portfolio.

'I look forward to updating shareholders on the progress at Tambar and on the commencement of our next exploration well, later in 2017, with the high impact Iris/Hades (Aerosmith) exploration well (Faroe 20%) expected to spud before the end of the year.'

Graph looking really positive here...a producer/explorer..so Brent/WTI rising should help.....

StockMarketWire.com
Faroe Petroleum has announced the commencement of the Iris/Hades (Aerosmith) exploration well, 6506/11-10 in licence PL644/PL644B in the Norwegian Sea. The well is located in the Halten Terrace some 200 kilometres offshore and adjacent to the producing Morvin and Aasgard fields, operated by licence partner Statoil.

The well will target two formations, one in the Cretaceous and the other in the Jurassic.

The Cretaceous Hades prospect is a closure on the flank of the Sklinna Ridge, with the Jurassic Iris prospect located directly underneath, within a rotated fault block. Licence PL644 and PL644B (Faroe 20%) were awarded in February 2012 and are operated by OMV (30%) with partners Statoil (30%) and Centrica (20%).

Faroe said the semi-submersible drilling rig, Deepsea Bergen, would be used for the drilling operations and results would be announced when operations had been completed, which was estimated to take approximately 90 days.

Chief executive Graham Stewart said: 'We are pleased to have spudded this well; not only is it good to end the year with another high impact exploration well but it is also good to be drilling a prospect which has been part of our portfolio for a number of years and which is located in an area we know very well and have had significant success in.

'The Iris/Hades (Aerosmith) well marks the end to our 2017 exploration drilling programme, which has continued to deliver value and an industry leading success rate of over 30% due to the diligence and hard work of our in-house technical teams.

'We end 2017 in a great position, with a pipeline of high quality, world class development projects, to grow materially our production and with a very strong balance sheet, which we recently further strengthened with the successful issue of a $100m unsecured bond.

'I look forward to updating the market on Faroe's progress in early 2018.'

StockMarketWire.com
Faroe Petroleum has noted that production on the Tambar field in Norway has been shut down temporarily after one person died in a serious accident on the Maersk Interceptor drilling rig yesterday.

Faroe - which has a 45% interest - said the operator, Aker BP, had confirmed that another employee of Maersk Drilling, was injured during the incident and had been taken to Stavanger University Hospital. His condition is not critical.

The Maersk Interceptor is currently drilling wells on the Tambar field for the Tambar joint venture.

The deceased, a Norwegian citizen and an employee of Maersk Drilling, fell into the sea during maintenance work on the drilling rig.

How the incident occurred has not yet been clarified and an investigation is under way.

Faroe said the emergency response organisation in Aker BP was immediately mobilised and it was cooperating closely with Maersk Drilling, the Joint Rescue Coordination Centre and relevant Authorities to manage the situation.

Peel Hunt today reaffirms its buy investment rating on Faroe Petroleum PLC (LON:FPM) and raised its price target to 125p (from 115p).

StockMarketWire.com
Faroe Petroleum announced that its Fogelberg appraisal well commenced drilling in the Norwegian Sea.

'The appraisal well will be drilled with the Island Innovator semi-submersible drilling rig, and the joint venture partners are Spirit Energy Norge AS (operator 51.7%) and PGNiG Upstream Norway AS (20%),' Faroe Petroleum said.

'The appraisal well will be drilled with the Island Innovator semi-submersible drilling rig, and the joint venture partners are Spirit Energy Norge AS (operator 51.7%) and PGNiG Upstream Norway AS (20%),' Faroe Petroleum said.

The main objectives of the appraisal well are to narrow this range in the reserves estimates and to provide additional information for development planning.

Graham Stewart, Chief Executive of Faroe Petroleum said: 'We are pleased to announce the spud of the Fogelberg appraisal well, which aims to derisk and prove up commercial volumes in the Fogelberg field ahead of any decision to develop the field.'

'Fogelberg was one of Faroe's earlier discoveries and has the potential to join a number of development and pre-development projects which are on track to significantly grow Faroe's production, cash flow and value in the coming years.' "Looking ahead to Faroe's 2018 exploration programme, we continue drilling on the Iris/Hades exploration well in the Norwegian Sea, before drilling the Rugne and Cassidy prospects later in the year.'

StockMarketWire.com
Faroe Petroleum plc announced Monday the sale of its 17.5% stake in the Fenja development to Suncor for cash consideration of $54.5 million.

Faroe would retain 7.5% stake in Fenja, underlining Faroe's support for the project, and fully aligning Faroe's equity at 7.5% across the Greater Njord Area (Njord, Fenja, Bauge and Hyme).

The transaction is expected to reduce Faroe's future capital expenditure on Fenja to approximately £70m.

Graham Stewart, CEO, said: 'I am very pleased to welcome Suncor, a significant global integrated energy company, into the Fenja joint venture. Suncor's acquisition of a 17.5% stake in Fenja from Faroe confirms our belief in the attractiveness of this project. We look forward to working together with Suncor as the Fenja project progresses to first oil.'

'This transaction marks a major milestone for Faroe, which has taken Fenja through exploration and appraisal drilling to predevelopment work and validates Faroe's business model of generating tangible shareholder returns from its exploration portfolio.'

StockMarketWire.com
Faroe Petroleum reported average production of 14,300 boepd in 2017 which was at the upper end of guidance while 2018 production is expected to be in the range of 12,000 to 15,000 boepd.

The company reported a 20% increase in 2P reserves to 97.7 mmboe for the year following the successful Brasse appraisal well in 2017 and after adjusting for the Fenja transaction. Year-end 2C resources were 78.6 mmboe.

The company said that it was fully funded for Brasse and ongoing development projects including Oda, Njord Future, Bauge and Fenja, following the sale of 17.5% of Fenja.

A high quality E&A drilling programme was reported to have commenced in 2018 with Iris or Hades and Fogelberg wells already drilling and three further wells added: Rungne, Cassidy and Pabow.

Graham Stewart, Chief Executive of Faroe Petroleum said: '2017 has been another very good year for Faroe with strong operational performance enhanced by a general recovery in commodity prices and market sentiment.'

'A highly successful appraisal well on our Brasse oil and gas discovery in Norway and its conversion to 2P reserves, combined with positive reserves revisions in Ula and Tambar led to Faroe's highest ever recorded year-end 2P reserves at 97.7 mmboe, an increase of 20% even after adjusting for the reduced interest in Fenja announced yesterday.'

'The Tambar production project commenced last year and the two infill wells have now been drilled and early results are very positive showing good potential for increased production with the new wells expected on stream during February.'

RBC Capital Markets today reaffirms its outperform investment rating on Faroe Petroleum PLC (LON:FPM) and raised its price target to 140p (from 130p).

StockMarketWire.com
Faroe Petroleum's 2P reserves rose by 40% to 114.1mmboe at the start of January - up from 81.3 mmboe at the beginning of 2017.

Faroe said the significant increase - reserves replacement of approximately seven times - was the result of both the conversion of Brasse from 2C contingent resources to 2P reserves and incremental projects across the portfolio, which generated positive reserve revisions notably on Tambar.

2C contingent resources were 14% lower at 86mmboe from 90.9mmboe reported in the prior year.

Average 2017 economic production was 14,349 boepd down from 17,395 boepd a year ago, weighed by suspended production from Njord and Hyme in 2017 and natural decline in other fields.

Faroe said its active exploration and appraisal programme in Norway - which benefits from the 78% exploration tax refund - continued with four wells drilled in 2017.

Faroe said the Iris-Hades exploration well spudded in December 2017 and drilling was ongoing.

The partial sale of the Fenja discovery for $54.5m, reduced the group's exposure on future capital expenditure on Fenja to approximately £70m.

Adjusted revenue averaged $46 per boe, up from $42 per boe, after taking account of £30.7m of underlift included in revenue and cost of sales.

Total operating expenditure per boe was $30 in 2017, down from $31 in 2016. While exploration & appraisal capex rose slightly to £47.7m, from £47.5m.

Farore said production guidance for 2018 is 12,000 boepd to 15,000 boepd split approximately 67% liquids and 33% gas. While Opex is expected to be in range $23 to 27 per boe. Exploration and appraisal drilling programme in 2018 will include 4 to 6 wells, all in Norway.

Net capital expenditure for 2018 on exploration is estimated at approximately £80m pre-tax - £20 million post-tax- and on development and production is estimated at approximately £175m, all fully funded.

Looks like they've hit the jackpot with this oil strike !.....

Relatively muted reaction though, given the apparent scale of the find required field...

Turbulent times.....but these discoveries are great for this smallish company....news will slowly filter through that this is a superb little company ........

Nice rise today..... again......

StockMarketWire.com
Faroe Petroleum, the independent oil and gas company, said Thursday it completed the previously announced sale of its 17.5% working interest in the Fenja development located in the Norwegian Sea for $68m.

That cut Faroe's stake in the Fenja development to a 7.5% working interest.

'I am pleased to announce the completion of the sale of a partial interest in our Fenja project. This transaction validates Faroe's business model of generating tangible and attractive shareholder returns from our exploration portfolio,' said Graham Stewart, CEO.

'As well as producing an immediate cash return, the transaction reduces Faroe's net capital expenditure on the Fenja development to approximately $96 million. This in turn gives us additional liquidity for our other high quality projects such as the Brasse development and ensures we are fully funded to reach our organic production growth target of 35,000 boepd.'

StockMarketWire.com
Oil and gas group Faroe Petroleum announced Thursday that it had been awarded a new prospective exploration licence of Block 30/14b, which contained the high-impact Edinburgh prospect, under the 30th Licence Round on the UK Continental Shelf.

The Edinburgh prospect straddles the UK and Norway border in the Central North Sea, at the south eastern end of the prolific Josephine Ridge area.

The prospect is one of the largest remaining undrilled structures in the Central North Sea covering an area of over 40 square kilometres, the company said.

'We are pleased to announce the award of Block 30/14b which contains the high-impact Edinburgh prospect. This award is significant in that it is our first new licence in the UKCS since 2014,' said Graham Stewart, Chief Executive of Faroe Petroleum.

'Faroe is targeting multiple potential new discoveries with a significant exploration and appraisal programme of six wells committed in 2018 alone, taking full advantage of current low rig rates'.

FWIW Today, I noticed Dirs Buying shares...and they then received almost double that number for zero-pence.... Is that a "special" Deal =3 for 1?
=Don't understand it, but it doesn't look "right" to my mind. Oddly, the Company RNS doesn't appear to confirm this.... but see "Director Deals" on this website....
~ IMHO . . . . If the shares look "right" then Buy, just like anyone else. ~
There, - that's my "take".

Jefferies International today reaffirms its buy investment rating on Faroe Petroleum PLC (LON:FPM) and raised its price target to 170p (from 125p).

Peel Hunt today upgrades its investment rating on Faroe Petroleum PLC (LON:FPM) to buy (from add) and raised its price target to 174p (from 157p).

StockMarketWire.com
Faroe Petroleum on Wednesday guided its full-year production outlook lower after reporting slowdown in first-half production amid expected and unexpected disruptions.

The full year guidance range was narrowed to range of 12,000-to-14,000 barrels of oil equivalent a day (boepd).

For the six months to 30 June, earnings (EBITDAX) is expected to come in at about £76m.

Group production averaged 12,402 boepd in the six months through June but was disrupted by a a temporary loss of production from the Trym field in the first quarter and planned temporary shut downs of the Ula hub and the Brage field during the second quarter for maintenance.

The average operating cost per barrel of oil equivalent for producing fields for the period was approximately $27 a barrel.

Full-year exploration and appraisal capex forecasts were reduced from £80m to £70m reflecting the reduction in Fogelberg equity, the company said.

Full-year capex is expected to come in at £155m 'With a fully funded programme ahead, investing across our business, and at the bottom of the cycle, I remain confident in our ability to deliver our stated production growth target of 35,000 boepd by 2021/22, designed to generate material increase in cash-flow and shareholder value,' said Graham Stewart, Chief Executive of Faroe Petroleum.

This cash offer should be turned down....does not reflect the real value of this company....

Response to announcement made by DNO ASA ("DNO")
Faroe Petroleum plc ("Faroe") notes the announcement today by DNO of an unsolicited offer for the whole of the issued and to be issued share capital of Faroe Petroleum plc of 152p in cash per Faroe Share (the "Offer").

DNO did not engage with Faroe before making the announcement of its unilateral Offer.

The Board of Faroe will meet together with its advisers to consider the Offer and a further announcement will be made in due course.

In the meantime, Faroe shareholders are strongly urged to take no action in relation to their Faroe shares.

StockMarketWire.com
Oil and gas company Faroe Petroleum said the Cassidy exploration well in the Norwegian North Sea had been spudded.

The total expected vertical depth of the well was approximately 3,056 metres, in a water depth of 66 metres, the company said.

Drilling operations would be undertaken using the Maersk Interceptor rig, and the results would be announced on completion of drilling operations, it added.

'I am pleased to announce the spudding of the Cassidy exploration well situated within tie-back distance of the Oda field, which is on track for first oil in H1 2019. Cassidy offers high value upside for the Oda field development as well as potential to unlock further exploration prospectivity to the north of the Oda field,' said Graham Stewart, CEO.

'Faroe's active exploration programme has delivered two commercial discoveries out of three wells so far this year: Iris Hades in Norway (Faroe's largest discovery to date); and Agar in UK. The programme is continuing over the coming period, with Cassidy and the Brasse East well currently drilling, a further two wells so far committed for drilling in H1 2019, and a steady flow of additional wells being prepared for drilling.'

In a separate statement, Faroe said it had signed an agreement with Equinor to swap its interests in the Njord, Hyme redevelopment and Bauge development assets in return for interests in four production assets on the Norwegian Continental Shelf on a cashless basis.

The four production assets on the Norwegian Continental Shelf included Alve, Marulk, Ringhorne East and Vilje.

The asset swap would accelerate Faroe's targeted production growth adding 7,000-8,000 barrels a day of oil equivalent in in 2019; significantly reduce capital expenditure by eliminating expenditure on the divested assets from 2019; and expands footprint through two new core areas, Alvheim and Norne, the company said.

The transaction was expected to be completed on 1 January 2019, but required consent from the Norwegian authorities, Faroe added

Barclays Capital today upgrades its investment rating on Faroe Petroleum PLC (LON:FPM) to equal weight (from underweight) and raised its price target to 185p (from 160p).

StockMarketWire.com
Norwegian oil and gas operator DNO on Thursday extended its 152p-a-share takeover offer for Faroe Petroleum for further two weeks.

The announcement comes just a day after Faroe declared DNO's offer 'opportunistic,' citing an independent evaluation, which priced the company's assets in the range of US$879m to US$1,076m, implying a valuation of between 186p and 225p a share.

As at 1.00 p.m. on 2 January 2019, DNO's had secured a total of 48,986,566 Faroe shares at the offer price, representing 13.1% of Faroe's shares.

DNO now owned 43% of Faroe as it inched closer towards the 57.5% mark, which would trigger the acceptance condition required to takeover the company. DNO's offer would remain open for acceptances until 1.00 p.m. on 16 January 2019, but if it lapses, then the company would not be able to make a new offer for another 12 months.

Barclays Capital today reaffirms its equal weight investment rating on Faroe Petroleum PLC (LON:FPM) and cut its price target to 165p (from 185p).

Oslo, 4 February 2019 - DNO ASA ("DNO"), the Norwegian oil and gas operator, has now acquired or received acceptances for over 90 percent of the Faroe Shares to which its Final Offer relates by nominal value and voting rights attaching to such shares, enabling it to initiate the compulsory acquisition procedure for the remaining Faroe Shares.

DNO announced its final cash offer for the entire issued and to be issued share capital of Faroe Petroleum plc ("Faroe") at 160 pence in cash for each Faroe Share (the "Final Offer") on 8 January 2019 and published the final offer document on the same day (the "Final Offer Document"). On 9 January 2019, Faroe announced the Faroe Board's recommendation of the Final Offer.