TIDMFPM
RNS Number : 5307S
Faroe Petroleum PLC
26 June 2018
26 June 2018
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Annual General Meeting Statement
Faroe Petroleum, the independent oil and gas company focusing
principally on exploration, appraisal and production opportunities
in Norway and the UK, will be holding its Annual General meeting
today at the offices of FTI Consulting, 200 Aldersgate, Aldersgate
Street, London EC1A 4HD at 11.00 a.m.
At the meeting, the Chairman, John Bentley will make the
following statement on current trading:
"Faroe Petroleum remains on track to execute its strategic
growth-focused objectives. We have delivered considerable progress
in the first half of the year in terms of exploration and appraisal
success, field investment across multiple assets and on our
high-quality development portfolio, which remains on schedule and
on budget. Notably our first exploration well in 2018, targeting
the Iris and Hades prospects, generated significant discoveries in
the primary and secondary objectives. In addition, we have reported
a successful appraisal of Fogelberg where production testing is
underway. Furthermore, and in accordance with Faroe's continuous
monetisation and portfolio management focus, we have sold down
17.5% of our equity in the Fenja field development to Suncor for
$54.5 million, while retaining a 7.5% equity stake, such that Faroe
now holds 7.5% equity in the entire Greater Njord Area, an
important strategic hub for the business. During the first half of
2018, we also farmed down to Dyas the Fogelberg licence while
retaining a 15% equity stake. Following these transactions Faroe is
fully funded for its entire near-term investment and development
programme, taking full advantage of the continuing low-cost
environment. This programme includes key projects on Njord Future,
Bauge, Fenja, Oda, Tambar and Ula, as well as the Faroe-operated
Brasse field development which, while yet to be committed to, is
also fully funded.
"Production guidance remains unchanged with an average of
12-15,000boepd.
"The Company is in a very strong position, with an outstanding
fully funded value growth profile, material exploration success
this year already, all underpinned by significant liquidity . As we
seek further low cost 2C resource additions, we are maintaining a
very active drilling programme. Rigs have so far been committed to
drill five wells in the months ahead, all on attractive terms.
"I would like to thank all our shareholders for their continued
support and look forward to reporting further progress across the
business during the remainder of 2018."
For further information please contact:
Faroe Petroleum plc Tel: +44 (0) 1224 650
Graham Stewart, CEO 920
Stifel Nicolaus Europe Limited Tel: +44 (0) 20 7710
Callum Stewart / Nicholas Rhodes 7600
/ Ashton Clanfield
BMO Capital Markets Tel: +44 (0) 207 236
Neil Haycock / Tom Rider / Jeremy 1010
Low
FTI Consulting Tel: +44 (0) 20 3727
Edward Westropp / Ben Brewerton / 1000
Emerson Clarke
John Wood, UK Asset Manager of the Company with over 15 years'
experience of the oil and gas industry and who holds an M.Sc in
Petroleum Engineering from Imperial College, has read and approved
the production and development disclosure in this regulatory
announcement.
Andrew Roberts, Group Exploration Manager of Faroe Petroleum and
a Geophysicist (BSc. Joint Honours in Physics and Chemistry from
Manchester University), who has been involved in the energy
industry for more than 25 years, has read and approved the
exploration and appraisal disclosure in this regulatory
announcement.
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014, and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Notes to Editors
The Company has, through successive licence applications and
acquisitions, built a substantial and diversified portfolio of
exploration, appraisal, development and production assets in
Norway, the UK and Ireland.
Faroe Petroleum is an experienced licence operator having
operated several exploration wells successfully in Norway and the
UK and is also the production operator of the Schooner and Ketch
gas fields in the UK Southern Gas Basin and the Trym and Oselvar
fields in the Norwegian North Sea. Faroe has extensive experience
working closely with major and independent oil companies both in
Norway and in the UK.
The Company's substantial licence portfolio provides a diverse
spread of risk and reward. Faroe has an active E&A drilling
programme and has interests in a portfolio of producing oil and gas
fields in the UK and Norway, including the Schooner and Ketch gas
fields and the Blane oil field in the UK, and interests in the
Brage, Ringhorne East, Ula, Tambar, Oselvar and Trym fields in
Norway. In 2016 the Company completed the acquisition of a package
of Norwegian producing assets from DONG Energy including interests
in the Ula, Tambar, Oselvar and Trym fields. Full year average
production for 2018, is estimated to be between 12-15,000
boepd.
In November 2013 and March 2014 Faroe announced the Snilehorn
(Bauge) and Pil (Fenja) discoveries in the Norwegian Sea in close
proximity to the Njord and Hyme fields. In July 2016, the Company
announced the Brasse discovery, close to the Brage field, and the
Njord North Flank (Bauge) discovery, close to the Njord field, both
in Norway. In February 2018, the Company announced the sale of part
of its interest in the Fenja field and in April 2018 announced the
significant Iris and Hades discoveries.
Norway operates a tax efficient system, which incentivises
exploration, through reimbursement of 78% of costs in the
subsequent year. Faroe has built an extensive portfolio of high
potential exploration licences in Norway, which, together with its
established UK North Sea positions provides the majority of
prospects targeted by the Company's sustainable exploration
drilling programme. Faroe has had significant success in
exploration on the Norwegian continental shelf, and the great
majority of the Company's 2P reserves have been generated directly
from Faroe's exploration success.
Faroe Petroleum is quoted on the AIM Market of London Stock
Exchange. The Company is funded from cash reserves and cash flow,
and has access to a $250 million reserve base lending facility,
with a further US$100million available on an uncommitted
"accordion" basis. The Company has also raised a $100m senior
unsecured bond. Faroe has a highly experienced technical team who
are leaders in the areas of seismic and geological interpretation,
reservoir engineering and field development, focused on creating
exceptional value for its shareholders.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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