Faroe Petroleum, the independent oil and gas group focused on oil and gas exploration in the Atlantic Margin, Norway and the North Sea, announces its unaudited Interim Results for the six months ended 30 June 2010.
Highlights
Operations
* Significant gas and condensate discovery in the Fogelberg well in Norway (Faroe 15%) in April
* Significant oil discovery in the Maria well in Norway (Faroe 30%) in July
* Average oil and gas production of approximately 1,360 boepd
* Pre‐qualified as operator in Norway
Financial and Corporate
* Successful rights issue raising £65.2m (net of expenses) to fund forward drilling programme
* Cash of £80.6m at 30 June 2010 (31 December 2009 adjusted: £33.1m).
* Access to over £72.5m credit, comprising £50m for Norway exploration and £22.5m borrowing base facility
* Turnover of £9.3m (1H 2009: £2.9m)
* Loss before tax of £3.8m (1H 2009: £6.1m loss)
* Board further strengthened with appointment of Ms Hanne Harlem as Non‐Executive Director
Outlook
* Exciting drilling programme targeting 5 wells per year, with current 7 firm and 7 expected wells scheduled up to 2012, including 8 in Norway, 5 in the Atlantic Margin and 1 in UK North Sea
* Anne Marie and Lagavulin wells to be drilled in the Atlantic Margin in the second half of this year
* Well positioned to achieve significant programme expansion and growth in portfolio value
Graham Stewart, Chief Executive, commented:
“We have made very good progress in the period, with two significant exploration successes in Norway in the Fogelberg and Maria wells, building on the 2010 discoveries at Tornado and Glenlivet. Faroe has an exciting drilling programme ahead with five material wells expected per annum over the next two years alone. Our recent drilling successes clearly demonstrate delivery on the strategy we set out earlier this year when we raised over £65m net equity funds in a very well‐supported rights issue.
Faroe Petroleum has built an outstanding portfolio of assets, combining high potential value exploration and appraisal opportunities with a growing production base. The Company is going through an important and exciting period of activity and growth, driven by an outstanding team confident of delivering further substantial value to our shareholders.”
[mappress]
Source: faroe-petroleum, September 21, 2010;