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Unaudited Interim Results for the six months ended 30 June 2017

 

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, announces its unaudited Interim Results for the six months ended 30 June 2017.

Highlights

Exploration and Appraisal – significant resource upgrade following Brasse appraisal

Development and Production – good production performance and all projects progressing to plan and on budget

Finance – strong cash generation from producing assets

Outlook – step-up in economically attractive organic development and production investments, fully funded

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

“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.”

To read the full Interim Result announcement please click here.

1Economic production including production from assets acquired from DONG with an effective date of 1 January 2016 – the transaction completed in December 2016. Accounting production,  excluding production from the assets acquired from DONG, was 9,043 boepd.

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

BMO Capital Markets
Neil Haycock/Tom Rider/Jeremy Low
Tel: +44 207 236 1010

FTI Consulting
Edward Westropp/Tom Hufton
Tel: +44 203 727 1000