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

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

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

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

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

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

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

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

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

Slowly rising again.....

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

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

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

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

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

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

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

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

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

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

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

'The Company has delivered good financial performance in H1 2017 with strong cash flow, improved cash reserves and an undrawn RBL credit facility of $250 million, ensuring significant financial flexibility going forward as we progress our development and exploration programmes simultaneously.

'Looking ahead, while we actively manage our organic programme, we will seek to continue to capitalise on our strong strategic and financial position as we pursue further attractive and value accretive M&A opportunities.'

Barclays Capital today reaffirms its overweight investment rating on Faroe Petroleum PLC (LON:FPM) and cut its price target to 110p (from 115p).

StockMarketWire.com
Faroe Petroleum has announced that drilling operations have started on the Tambar development project in the producing Tambar field in Norway.

Faroe - which has a 45% interest - said that gas produced by the Tambar field would be transported to and reinjected into the Ula field (Faroe 20%) as part of its successful ongoing water alternating gas injection scheme, which was expected to generate additional production over the life of the Ula field.

The Tambar development project consists of two new infill wells and the installation of gas lift in three existing wells to increase overall field production.

It said the infill wells, which were being drilled by the Maersk Interceptor drilling rig, would target undrained areas of the field identified in the north and south with the potential to increase 2P reserves further.

It said the combination of the infill wells and installation of gas lift had the potential to increase Tambar production markedly and extend field life by up to 10 years, contributing to lower unit operating costs in the Ula hub area.

Chief executive Graham Stewart said: 'I am pleased to announce the commencement of the high impact work programme on the Tambar field.

'The joint venture sanctioned the project in April this year and it has been a great achievement by the operator to mobilise the rig and commence drilling operations within such a short space of time.

'Drilling operations are now expected to continue to the end of Q1 next year, and it is hoped that the two new wells will be brought on stream before the end of April 2018.

'The significance of this work programme is not only the impact on reserves and production but it also shows our ability to drive value and upside potential from the existing portfolio.

'I look forward to updating shareholders on the progress at Tambar and on the commencement of our next exploration well, later in 2017, with the high impact Iris/Hades (Aerosmith) exploration well (Faroe 20%) expected to spud before the end of the year.'

Graph looking really positive here...a producer/explorer..so Brent/WTI rising should help.....

StockMarketWire.com
Faroe Petroleum has announced the commencement of the Iris/Hades (Aerosmith) exploration well, 6506/11-10 in licence PL644/PL644B in the Norwegian Sea. The well is located in the Halten Terrace some 200 kilometres offshore and adjacent to the producing Morvin and Aasgard fields, operated by licence partner Statoil.

The well will target two formations, one in the Cretaceous and the other in the Jurassic.

The Cretaceous Hades prospect is a closure on the flank of the Sklinna Ridge, with the Jurassic Iris prospect located directly underneath, within a rotated fault block. Licence PL644 and PL644B (Faroe 20%) were awarded in February 2012 and are operated by OMV (30%) with partners Statoil (30%) and Centrica (20%).

Faroe said the semi-submersible drilling rig, Deepsea Bergen, would be used for the drilling operations and results would be announced when operations had been completed, which was estimated to take approximately 90 days.

Chief executive Graham Stewart said: 'We are pleased to have spudded this well; not only is it good to end the year with another high impact exploration well but it is also good to be drilling a prospect which has been part of our portfolio for a number of years and which is located in an area we know very well and have had significant success in.

'The Iris/Hades (Aerosmith) well marks the end to our 2017 exploration drilling programme, which has continued to deliver value and an industry leading success rate of over 30% due to the diligence and hard work of our in-house technical teams.

'We end 2017 in a great position, with a pipeline of high quality, world class development projects, to grow materially our production and with a very strong balance sheet, which we recently further strengthened with the successful issue of a $100m unsecured bond.

'I look forward to updating the market on Faroe's progress in early 2018.'

StockMarketWire.com
Faroe Petroleum has noted that production on the Tambar field in Norway has been shut down temporarily after one person died in a serious accident on the Maersk Interceptor drilling rig yesterday.

Faroe - which has a 45% interest - said the operator, Aker BP, had confirmed that another employee of Maersk Drilling, was injured during the incident and had been taken to Stavanger University Hospital. His condition is not critical.

The Maersk Interceptor is currently drilling wells on the Tambar field for the Tambar joint venture.

The deceased, a Norwegian citizen and an employee of Maersk Drilling, fell into the sea during maintenance work on the drilling rig.

How the incident occurred has not yet been clarified and an investigation is under way.

Faroe said the emergency response organisation in Aker BP was immediately mobilised and it was cooperating closely with Maersk Drilling, the Joint Rescue Coordination Centre and relevant Authorities to manage the situation.

Peel Hunt today reaffirms its buy investment rating on Faroe Petroleum PLC (LON:FPM) and raised its price target to 125p (from 115p).

StockMarketWire.com
Faroe Petroleum announced that its Fogelberg appraisal well commenced drilling in the Norwegian Sea.

'The appraisal well will be drilled with the Island Innovator semi-submersible drilling rig, and the joint venture partners are Spirit Energy Norge AS (operator 51.7%) and PGNiG Upstream Norway AS (20%),' Faroe Petroleum said.

'The appraisal well will be drilled with the Island Innovator semi-submersible drilling rig, and the joint venture partners are Spirit Energy Norge AS (operator 51.7%) and PGNiG Upstream Norway AS (20%),' Faroe Petroleum said.

The main objectives of the appraisal well are to narrow this range in the reserves estimates and to provide additional information for development planning.

Graham Stewart, Chief Executive of Faroe Petroleum said: 'We are pleased to announce the spud of the Fogelberg appraisal well, which aims to derisk and prove up commercial volumes in the Fogelberg field ahead of any decision to develop the field.'

'Fogelberg was one of Faroe's earlier discoveries and has the potential to join a number of development and pre-development projects which are on track to significantly grow Faroe's production, cash flow and value in the coming years.' "Looking ahead to Faroe's 2018 exploration programme, we continue drilling on the Iris/Hades exploration well in the Norwegian Sea, before drilling the Rugne and Cassidy prospects later in the year.'

StockMarketWire.com
Faroe Petroleum plc announced Monday the sale of its 17.5% stake in the Fenja development to Suncor for cash consideration of $54.5 million.

Faroe would retain 7.5% stake in Fenja, underlining Faroe's support for the project, and fully aligning Faroe's equity at 7.5% across the Greater Njord Area (Njord, Fenja, Bauge and Hyme).

The transaction is expected to reduce Faroe's future capital expenditure on Fenja to approximately £70m.

Graham Stewart, CEO, said: 'I am very pleased to welcome Suncor, a significant global integrated energy company, into the Fenja joint venture. Suncor's acquisition of a 17.5% stake in Fenja from Faroe confirms our belief in the attractiveness of this project. We look forward to working together with Suncor as the Fenja project progresses to first oil.'

'This transaction marks a major milestone for Faroe, which has taken Fenja through exploration and appraisal drilling to predevelopment work and validates Faroe's business model of generating tangible shareholder returns from its exploration portfolio.'

StockMarketWire.com
Faroe Petroleum reported average production of 14,300 boepd in 2017 which was at the upper end of guidance while 2018 production is expected to be in the range of 12,000 to 15,000 boepd.

The company reported a 20% increase in 2P reserves to 97.7 mmboe for the year following the successful Brasse appraisal well in 2017 and after adjusting for the Fenja transaction. Year-end 2C resources were 78.6 mmboe.

The company said that it was fully funded for Brasse and ongoing development projects including Oda, Njord Future, Bauge and Fenja, following the sale of 17.5% of Fenja.

A high quality E&A drilling programme was reported to have commenced in 2018 with Iris or Hades and Fogelberg wells already drilling and three further wells added: Rungne, Cassidy and Pabow.

Graham Stewart, Chief Executive of Faroe Petroleum said: '2017 has been another very good year for Faroe with strong operational performance enhanced by a general recovery in commodity prices and market sentiment.'

'A highly successful appraisal well on our Brasse oil and gas discovery in Norway and its conversion to 2P reserves, combined with positive reserves revisions in Ula and Tambar led to Faroe's highest ever recorded year-end 2P reserves at 97.7 mmboe, an increase of 20% even after adjusting for the reduced interest in Fenja announced yesterday.'

'The Tambar production project commenced last year and the two infill wells have now been drilled and early results are very positive showing good potential for increased production with the new wells expected on stream during February.'

RBC Capital Markets today reaffirms its outperform investment rating on Faroe Petroleum PLC (LON:FPM) and raised its price target to 140p (from 130p).

StockMarketWire.com
Faroe Petroleum's 2P reserves rose by 40% to 114.1mmboe at the start of January - up from 81.3 mmboe at the beginning of 2017.

Faroe said the significant increase - reserves replacement of approximately seven times - was the result of both the conversion of Brasse from 2C contingent resources to 2P reserves and incremental projects across the portfolio, which generated positive reserve revisions notably on Tambar.

2C contingent resources were 14% lower at 86mmboe from 90.9mmboe reported in the prior year.

Average 2017 economic production was 14,349 boepd down from 17,395 boepd a year ago, weighed by suspended production from Njord and Hyme in 2017 and natural decline in other fields.

Faroe said its active exploration and appraisal programme in Norway - which benefits from the 78% exploration tax refund - continued with four wells drilled in 2017.

Faroe said the Iris-Hades exploration well spudded in December 2017 and drilling was ongoing.

The partial sale of the Fenja discovery for $54.5m, reduced the group's exposure on future capital expenditure on Fenja to approximately £70m.

Adjusted revenue averaged $46 per boe, up from $42 per boe, after taking account of £30.7m of underlift included in revenue and cost of sales.

Total operating expenditure per boe was $30 in 2017, down from $31 in 2016. While exploration & appraisal capex rose slightly to £47.7m, from £47.5m.

Farore said production guidance for 2018 is 12,000 boepd to 15,000 boepd split approximately 67% liquids and 33% gas. While Opex is expected to be in range $23 to 27 per boe. Exploration and appraisal drilling programme in 2018 will include 4 to 6 wells, all in Norway.

Net capital expenditure for 2018 on exploration is estimated at approximately £80m pre-tax - £20 million post-tax- and on development and production is estimated at approximately £175m, all fully funded.

Looks like they've hit the jackpot with this oil strike !.....

Relatively muted reaction though, given the apparent scale of the find required field...

Turbulent times.....but these discoveries are great for this smallish company....news will slowly filter through that this is a superb little company ........

Nice rise today..... again......

StockMarketWire.com
Faroe Petroleum, the independent oil and gas company, said Thursday it completed the previously announced sale of its 17.5% working interest in the Fenja development located in the Norwegian Sea for $68m.

That cut Faroe's stake in the Fenja development to a 7.5% working interest.

'I am pleased to announce the completion of the sale of a partial interest in our Fenja project. This transaction validates Faroe's business model of generating tangible and attractive shareholder returns from our exploration portfolio,' said Graham Stewart, CEO.

'As well as producing an immediate cash return, the transaction reduces Faroe's net capital expenditure on the Fenja development to approximately $96 million. This in turn gives us additional liquidity for our other high quality projects such as the Brasse development and ensures we are fully funded to reach our organic production growth target of 35,000 boepd.'

StockMarketWire.com
Oil and gas group Faroe Petroleum announced Thursday that it had been awarded a new prospective exploration licence of Block 30/14b, which contained the high-impact Edinburgh prospect, under the 30th Licence Round on the UK Continental Shelf.

The Edinburgh prospect straddles the UK and Norway border in the Central North Sea, at the south eastern end of the prolific Josephine Ridge area.

The prospect is one of the largest remaining undrilled structures in the Central North Sea covering an area of over 40 square kilometres, the company said.

'We are pleased to announce the award of Block 30/14b which contains the high-impact Edinburgh prospect. This award is significant in that it is our first new licence in the UKCS since 2014,' said Graham Stewart, Chief Executive of Faroe Petroleum.

'Faroe is targeting multiple potential new discoveries with a significant exploration and appraisal programme of six wells committed in 2018 alone, taking full advantage of current low rig rates'.