Faroe Petroleum Reports Increased 1H Net Cash
Faroe Petroleum, the independent oil and gas group focused on oil and gas exploration and production in the Atlantic margin, Norway and the North Sea, announces its unaudited Interim Results for the six months ended 30 June 2013.
The Compan reports Revenue at £89.0million (1H2012: £90.6million) and EBITDAX at £56.9million (1H2012: £62.8million). Profit after tax was £12.2 million (1H 2012: £3.7 million) – after exploration write‐offs of £13.6 million (1H 2012:£51.3million) and Net cash was £66.5million at 30 June 2013 (31December 2012: £65.5million).
The Company has six exploration wells scheduled in Norway in the coming period: Snilehorn (spudded 17 September 2013), Novus (Faroe operated), Pil, Solberg, Butch East and Butch South West – targeting reserves in excess of 85 mmboe (unrisked) netto Faroe.
Revised production guidance for the full year 2013 is 5,500‐6,500 boepd.
GrahamStewart, Chief Executive, commented:
“2013 is proving to be an extremely active year for Faroe. We have completed three exploration wells, and have recently commenced drilling on the first of six wells to be drilled over the coming period – all located close to existing producing fields and infrastructure. The year started on a high with a gas condensate discovery at Rodriguezin good quality reservoir and the follow‐up Solberg appraisal well is already planned for January 2014.
“We are excited about the two back‐to‐back Butch wells (Faroe 15%) which will explore the south west and east sides of the large salt structure where we made the significant Butchmain oil discovery in 2011,together with our operated Novus well on the Halten Terrace in Norway (Faroe 30%). Our focus on frontier exploration continues and we have further strengthened our strategic position in the Barents Sea with a licence award in the 22nd Norwegian round, in strong competition with many other companies. The licence, operated by Eni as one of the most successful explorers in the Barents Sea, has a firm well commitment on the Dazzler prospect, likely to be drilled in 2015, enhancing our high impact Norwegian drilling programme.
“We are pleased to have strengthened our production portfolio through the recent completion of the East Foinaven oilfield acquisition (Faroe 10%) and by bringing the Hyme oilfield (Faroe 7.5%) onstreamin March 2013. The Orca gas field (Faroe 3.24%) is currently under development with first gas expected before the year end while infill drilling is ongoing on a number of our producing assets, including the Schooner gas field (Faroe 6.9%). The Group’s significant tax capital allowances in Norway and large carried forward tax losses in the UK ensure our production providestax‐efficient cash flow to fully fund our active exploration programme.
“With excellent cashflow, existing cash balances and available debt facilities, Faroe is in a strong position to progress ourmulti‐well drilling campaign and pursue further investment and acquisition opportunities designed to unlock the value of our current tax losses, generate further cash flow and create significant shareholder value.“
September 26, 2013