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Final Results for the Year Ended 31 December 2014

 

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 2014.

Highlights

Exploration – successful year with significant Pil & Bue discoveries  

Production & Reserves – strong production performance and increase in reserves and contingent resources

Financial – strong balance sheet and positive cashflows from operations, despite impairments

Outlook – active, fully funded exploration programme and well positioned for further acquisitions

 

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

“We are pleased with the progress of the Company in 2014 despite the low oil price environment.   Operationally, the year delivered excellent results for the business with significant exploration success at the Pil and Bue wells, sustained production coming in at the upper end of expectations with Njord and Hyme back on production and the acquisition of the Schooner and Ketch UK gas fields.  With a reserves increase of 13% and a 49% increase in contingent resources in the year, the Company has again proved that its strategy to convert exploration prospects into resources and convert resources to reserves is working effectively.

“Our Norwegian position is now one of the most significant of any UK independent E&P company and, despite the challenging market conditions, the Company is set for another year of growth, with a fully-funded drilling programme of low cost, high impact exploration wells, all of which will benefit substantially from Norway’s tax-based exploration financing incentives.

“In the current low oil price environment, there is much focus on both cost and financial strength.  Faroe is particularly robust despite low oil prices, due to a combination of factors including: a significant cash position and substantially undrawn debt facilities; sustained cash flow from a balanced, low-opex and substantially hedged oil and gas production portfolio; and, following the sale in 2014 of our interest in Glenlivet, the absence of any substantial development capital commitments.  Consequently, Faroe is well placed to deliver continuing commitment to its ongoing work programme and to capitalise potentially on attractive asset opportunities which may become available in the period ahead.”

 

Please click here to view full announcement

 

For further information please contact:

Faroe Petroleum plc
Graham Stewart/Jonathan Cooper
Tel: +44 1224 650 920
Stifel Nicolaus Europe Limited
Callum Stewart/Michael Shaw/Ashton Clanfield
Tel: +44 20 7710 7600
RBC Capital Markets
Matthew Coakes/Jeremy Low
Tel: +44 20 7653 4000
FTI Consulting
Edward Westropp/Tom Hufton
Tel: +44 20 3727 1000

 

[1]   Economic Production in 2014 includes production from the acquired Schooner (53.1%) and Ketch (60%) fields from 1 January 2014 (the effective date).  Accounting Production excludes production between the effective date and date of completion on 9 October 2014.