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

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%).