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

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?