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

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.....