• BigBum

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Posts: 18
Opinion: No Opinion
Posted: November 6, 2017

FPM share price now at 105.25

Do you guys think this is going back to 115.00 soon?

• HLH

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Posts: 261
Opinion: Strong Buy
Posted: October 1, 2017

Faroe Petroleum - strong buy

At the moment 14 brokers are covering Faroe Petroleum (LON:FPM), 14 rate it “Strong Buy”, 0 “Buy”, 0 “Sell”, 0 “Strong Sell”, while 0 “Neutral”.

• BigBum

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Posts: 18
Opinion: Buy
Posted: September 27, 2017

After reading interim RNS

Broadly in line with expectations with Revenue and Other Income together in excess of £100 million and bottom line before exchange variances near breakeven.

No real surprises in trading update as said before the real growth will come over the next few years, but nice to see making positive progress.

I do however, think given current Crude prices and entering the winter months as demand increases the SP is well undervalued especially with DELEK in the background.

IMO only a short time before this is trading above £1.

• HLH

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Posts: 261
Opinion: No Opinion
Posted: September 26, 2017

2017 Interim Results

26 September 2017

FAROE PETROLEUM PLC

("Faroe Petroleum", "Faroe", the "Company" or the "Group")

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

· Successful Brasse (Faroe 50% and operator) appraisal well, production testing and side-track well, announced in July 2017, proving up recoverable volumes to 56-92 mmboe gross, an increase of approximately 20%

· Four new licences awarded in Norway under the 2016 APA licensing round in January 2017, including an extension to the Brasse discovery and two operatorships

· Farm-out secured on licence option 16/23 in Ireland to Nexen - Faroe retains 20% and is carried through the work programme, including a possible exploration well

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

· Average H1 2017 production of 14,800 boepd from existing portfolio (H1 2016: 18,800 boepd) - reflecting no production from Njord and Hyme as the facilities undergo life-extending refurbishment and upgrades

· Average operating cost for producing assets approximately $26 per boe (2016: $25), reflecting lower volume until new lower operating cost subsea fields come on stream

· Further 14% of Blane oil field acquired from JX Nippon in July 2017 for a consideration of $5.25 million

· Plan for the Development and Operation ("PDO") for Oda approved by Norwegian Ministry of Petroleum, triggering initial compensation payment from Oda partners (Faroe 15%) to Oselvar partners (Faroe 55%) (net £7.4 million receipt to Faroe) resulting in payback on the DONG deal within 6 months of completion

· PDO for Njord and Bauge approved by the Norwegian Ministry of Petroleum

Finance - strong cash generation from producing assets

· Revenue £80.1 million (H1 2016: £23.1 million) - reflecting higher accounting production as a result of the DONG asset acquisition completed in December 2016

· EBITDAX £44.0 million (H1 2016: £16.7 million) - includes net income of £10.4 million in relation to Oselvar compensation payments received and made following Oda PDA approval

· Operating loss of £0.3 million (H1 2016: £34.3 million) and loss after tax of £2.9 million (H1 2016: £13.0 million) - reflecting higher revenue and higher other income

· Exploration and appraisal capex £33.4 million (H1 2016: £14.8 million), equivalent to £7.3 million (H1 2016: £3.7 million) on a post-tax basis, taking account of 78% Norwegian exploration tax rebate

· Development and production capex £22.0 million (H1 2016: £2.5 million)

· Unrestricted cash and net cash at 30 June 2017 £117.6 million (31 December 2016: £96.8 million)

· $250 million reserve based lending ("RBL") facility, undrawn at 30 June 2017 (31 December 2016: £nil), and NOK 1 billion exploration finance facility ("EFF") in place

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

· Production guidance for 2017 maintained at 13,000-15,000 boepd as all key producing fields have been performing in line with expectations and with limited downtime

· Approximately 90% of gas production hedged to December 2018 averaging 42p/therm; and approximately 30% of oil production hedged to December 2018 averaging $55/bbl (all on post-tax basis)

· Exploration and appraisal drilling programme continues in H2 2017 in Norway - Goanna exploration well (Faroe 30% and fully cost-carried) spudded in August 2017 (dry); Iris/Hades (Aerosmith) exploration well (Faroe 20%) expected to commence in December 2017; Fogelberg appraisal well (Faroe 33.3%) forecast to spud in February 2018

· Investment step-up planned on developments and infill drilling, following approvals of Oda, Njord, Bauge developments, and Tambar infill drilling and gas lift projects - all fully funded from cash, cashflow and undrawn RBL credit facility

· Fully funded net capital expenditure for 2017 on exploration is estimated at approximately £45 million pre-tax (£10.5 million post-tax), and on development and production is estimated at approximately £90 million

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."

• HLH

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Posts: 261
Opinion: No Opinion
Posted: September 25, 2017

Brent Crude at $57.72

See Brent Crude at $57.72 per barrel today!