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Final Results for the Year ended 31 December 2017

 

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 2017.

Highlights

Exploration and appraisal – significant Brasse resource upgrade and active exploration programme

Development and production – excellent production performance and progress in high-quality development projects 

Finance – solid financial platform following $100 million bond issue and enhanced cashflow from production

Outlook – material production growth through fully funded organic development and production investments 

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

“I am pleased to announce our full year results for 2017 which was another significant period for the Company and one in which Faroe continued its evolution into a full cycle E&P business. We had further appraisal drilling success on our largest ever oil discovery, Brasse, in Norway which contributed to record growth in 2P reserves to 98 mmboe (after our sale of part of Fenja in 2018), with further 2C contingent resources of 79 mmboe. We trebled our development capital investment year on year to approximately £100 million, and are on track to deliver our organic production growth target of over 35,000 boepd in the medium term from existing projects, representing growth of around 2.5 times 2017 production.

“Financially, the year was also strong for Faroe, generating EBITDAX of £82.2 million from ongoing operations and completing our debut bond issue in November 2017 to raise $100 million on good terms. In February 2018, as part of our ongoing management of the portfolio and capital allocation, we announced a partial sale of our interest in the Fenja oilfield development in Norway, bolstering our strong financial position and freeing up capital for allocation to the pending Brasse field development.

“Faroe now has the distinct advantage of being in a fully-funded position and with clear line of sight to deliver material value growth, whilst continuing to pursue our significant exploration, appraisal and infill programme. Opportunities to accelerate further growth through potential value-accretive acquisitions and disposals also continue to be a major focus for the Company going forward.”

To read the full announcement please click here

Webcast and analyst presentation

At 11:30am GMT (London) and 12:30pm CET (Oslo) on Tuesday 20 March 2018, the Executive Management team will host a meeting for analysts at the offices of FTI Consulting and there will be a simultaneous webcast to present the Company’s results.

Telephone dial-in number: 020 3059 5868 (UK) or +44 20 3059 5868 (International) and say “Faroe Petroleum Full Year Financial Results” when prompted in order to participate.

The webcast can be accessed via the Company’s website (https://www.fp.fo) or at the following address:
https://secure.emincote.com/client/faroepetroleum/faroe002

 

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/Emerson Clarke
Tel: +44 203 727 1000

1Following three separate transactions by Faroe on the Fogelberg licence PL433, all of which are expected to complete in H1 2018, Faroe’s equity will be 15%, with an effective date of 1 January 2018
2Economic production including production from 14% of the Blane asset acquired from JX Nippon with an effective date of 1 January 2017 – the transaction completed in October 2017. Accounting production, excluding acquired production, was 14,139 boepd (2016: 8,026 boepd)