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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

 

Financial – equity fund raise and new 7-year Reserve Based Lending (“RBL”) facility ensure robust balance sheet

 

Outlook – high quality investment programme progressing to deliver material organic production growth

 

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.”

 

1 Economic production in 2016 includes production from the acquired Norwegian Ula, Tambar, Trym and Oselvar fields from 1 January 2016 (the effective date). Accounting production excludes production between the effective date and date of completion on 6 December 2016. Accounting production in 2016 was 8,026 boepd (2015: 10,252 boepd). Average economic operating cost per boe includes operating costs from the effective date of the acquired assets.

 

To read the full announcement please click here.
 
For further information please contact:

Faroe Petroleum plc
Graham Stewart/Jonathan Cooper
Tel: +44 1224 650 920

Stifel Nicolaus Europe Limited
Callum Stewart/Nicholas Rhodes/Ashton Clanfield
Tel: +44 20 7710 7600

RBC Capital Markets
Matthew Coakes
Tel: +44 20 7653 4000

FTI Consulting
Edward Westropp/Kim Camilleri
Tel: +44 20 3727 1000