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Oil & Gas

Faroe Petroleum stays active and looks forward to more drilling

Faroe told investors that first half production averaged 12,402 boepd, with the current rate at around 15,200 boepd

Faroe Petroleum PLC (LON:FPM) chief executive Graham Stewart, in this morning’s mid-year operations update, described the company as “one of the most active and successful explorers in the sector”.

In April, the company made the Iris Hades discovery, which added some 42mln barrels oil equivalent of contingent resources, and, it has a committed drill schedule comprising six wells.

A fully-funded field development campaign is underway and on-schedule, with development drilling presently underway at the Oda field.

READ: Faroe Petroleum banks US$68mln from Fenja sale

Faroe said first-half production averaged 12,402 boepd, with the current rate at around 15,200 boepd.

It said that earnings (EBITDAX) amounted to £76mln in the first half, and, it ended June with £84mln of cash.

"We have continued to deliver shareholder value in the first six months of the year, as we benefit from investment in our high quality asset base,” Stewart said.

He added: "The period to date has seen us deliver significant progress from an operational perspective and our exploration and appraisal programme continues to deliver material success.

“Faroe's production portfolio has seen a very active period of technical and investment driven activity. Although this reduced first half average production it will lead to increased productivity in the second half as well as the years ahead, as we invest heavily in our existing fields as well as several new fields.”

Stewart highlighted that he was confident in Faroe’s ability to achieve its longer-term production target, to grow output to 35,000 boepd by 2021/22.

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