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Final Results for the Year Ended 31 December 2015

 

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 2015.

Highlights

 

Operations – strong production performance and reserves growth

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


Outlook – fully-funded exploration programme and well positioned for further potential acquisitions

 

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

“2015 was another year of growth and good progress for Faroe despite a backdrop of significantly lower commodity prices. We delivered our exploration drilling programme safely and under budget, adding further material 2C resources, and doubled our 2P reserves in high quality assets, principally in Norway.  Our diverse North Sea production portfolio also outperformed expectations, averaging 10,530 boepd with lower unit operating costs of $23 per boe, down by 30% from the previous year.

“We stated a year ago that we would aim to run a cash-neutral budget for 2015 and we are pleased to end the year with cash of £91.5 million (2014: £92.6 million) after drilling five exploration wells and acquiring further interests in the Blane and Enoch production assets in the UK. This outcome is testament to the quality of our portfolio and our consistently prudent financial management, in what remains a very difficult market.

“Looking ahead to 2016, the business is in a good position to face the continuing challenges of our industry and to seek to capitalise on our relative financial strength as we pursue attractive consolidation opportunities in our core areas on the UK and Norwegian continental shelves.”

¹Economic production in 2015 includes production from the recently acquired interest in Blane field (12.5%) from 1 January 2015 (the effective date). Accounting production excludes production between the effective date and date of completion on 5 November 2015. Accounting production in 2015 was 10,252 boepd (2014: 6,579 boepd)

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/ Ashton Clanfield
Tel: +44 20 7710 7600

RBC Capital Markets
Matthew Coakes/Daniel Conti/Roland Symonds
Tel: +44 20 7653 4000

FTI Consulting
Edward Westropp/Tom Hufton
Tel: +44 20 3727 1000