Faroe Petroleum Operational Update
Tuesday 20 June 2017
Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway, the UK and Atlantic Margin, is pleased to provide an operational update ahead of its Annual General Meeting later today.
HIGHLIGHTS
Production
- Strong Production: averaged 15,100 boepd for the period from 1 January to 31 May 2017
Finances and balance sheet
- Cash increased: to £113.8 million (unaudited) at 19 June 2017 from £96.8 million 31 December 2016
- Undrawn RBL facility: Faroe has an undrawn reserves based lending credit facility (“RBL”) of $250 million (plus $100 million accordion)
Development and projects
- Oda PDO approved: Plan for the Development and Operation (“PDO”) for Oda approved by the Norwegian Ministry of Petroleum triggering cash compensation payments to Faroe estimated to be £14 million net in 2017 and 2018
- Njord Future and Bauge PDOs: PDO approval from the Norwegian Ministry of Petroleum expected shortly; projects progressing to plan
- Tambar infill and gas lift project on track: in-fill drilling and gas lift installation project was approved in March; main contracts awarded and the project is underway to boost production from 2018 onwards
- Brage infill drilling underway: the drilling of the first of two production wells has commenced
Exploration and appraisal
- Brasse appraisal progressing well: drill stem production test underway and results expected shortly
- Two additional E&A wells committed: drilling programme progressing / developing with two new E&A wells, both benefit from 78% Norwegian tax rebate
- Goanna exploration well committed with full carry to Faroe at 30% WI (“Working Interest”): committed to drill the Goanna exploration well; spud expected Q4 2017
- Fogelberg appraisal well committed: appraisal well to be drilled on Fogelberg with 33% WI; spud expected late 2017 or early 2018
- East Corrib farm out for full carry at 20% WI: Irish Ministerial approval granted for a farmout to Nexen of licence 16/23, West of Ireland
Production
Group production averaged approximately 15,100 boepd in the period from 1 January to 31 May 2017, with better than forecast performance from the main producing fields in the portfolio. The average operating cost per barrel of oil equivalent for producing fields for the same period was approximately US$25.
Average production guidance for the year remains at 13,000 to 15,000 boepd reflecting various forecast shutdowns to enable production enhancing work to be undertaken. A review of this guidance will be undertaken following the summer maintenance period.
More - http://www.fp.fo/news/2017-annual-general-meeting-...