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

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."