Company Information for Faroe Petroleum

Company stock charts - 6 Month chart

AIM; FPM View full financial data

Company Statement

Faroe Petroleum is an independent oil and gas company focused on value creation through exploration and appraisal drilling in the Atlantic Margin (Faroe Islands and UK West of Shetlands), the North Sea and Norway.

The Company is actively building a balanced portfolio of operated and non-operated exploration and appraisal properties, with significant stakes and an active programme. Faroe Petroleum has through successive licence applications and acquisitions built a substantial portfolio of exploration and appraisal assets in the Atlantic Margin, the UK and Norwegian North Sea and Norwegian Sea.  The 50 licence portfolio provides considerable spread of risk and reward, encompasses eight licences West of Shetlands, five licences offshore the Faroe Islands, six licences in the Moray Firth area of the UK Central North Sea, ten licences in the Southern gas basin and twenty licenses in the Norwegian North Sea and Norwegian Sea. The Company operates four of its Atlantic Margin licences.  Faroe Petroleum joint venture partners include Bayern Gas, BP, Chevron, Conoco Phillips, DONG, DSM, Eni, E.ON Ruhrgas, GDF, Oilexco, OMV, RWE, Shell, Centrica and StatoilHydro all of which have an outstanding track record in oil and gas exploration and development.

Faroe Petroleum is listed on the Alternative Investment Market of the London Stock Exchange and has its headquarters in Aberdeen, UK Faroe Petroleum has a highly experienced team of professionals focused on creating exceptional value for its shareholders. 

Operations and Technology

Faroe Islands

Faroe Petroleum has six exploration licences in the Faroes.

• Licences 002 and 005 were awarded through the 1st Faroese Licensing Round in 2000 in a joint venture
    with ENI Denmark B.V. (ENI)
• Licences 009 and 012 were won through the 2nd Faroese Licensing Round in 2005
• Licences 016 and 017 were won through the 3rd Faroese Licensing Round in 2008

The two licences awarded under the 1st Licensing Round, are located in the south easterly corner of the Faroese territorial waters, bordering the UK close to the major producing oil fields Foinaven and Schiehallion. The Marimas well (Licence 002) was drilled in 2002 and the Anne Marie well (Licence 005) is scheduled to be drilled in mid 2009. Faroe petroleum has farmed down its interest in the Anne Marie well to CIECO retaining a 12.5% interest (formerly 25%) with a substantial cost carry.

Licence 009, awarded in the 2nd Licensing Round, is situated closer to the Faroe Islands and covers some 2,000 square kilometres. The second licence awarded to the Company under the 2nd Licensing Round is the 100%, operated licence 012 situated on the Wyville-Thomson Ridge, south west of the Company’’s other Faroese licences. The Wyville-Thomson Ridge contains the largest un-drilled anticline in North West Europe. An interest in Licence 006 was acquired by Faroe Petroleum in December 2005 ahead of the Brugdan well, the region’’s first sub basalt well, which was drilled at the end of 2006.

UK
Faroe Petroleum has eight licences in the Atlantic margin region West of Shetlands of which two are held 100% and operated by Faroe Petroleum and the remaining six are held by in joint ventures with amongst others Chevron, BP, Dong E&P (UK) Limited and OMV.

Despite holding several of the biggest oil and gas fields on the UKCS, the west of Shetland region is still under-explored. However exploration success continued in the west of Shetland region in 2008 which has a positive impact on Faroe Petroleum’s exploration portfolio. These results include: Amerada Hess’ Amos Palaeocene oil discovery south of the Schiehallion oil field; BP South West Foinaven, 204/23-2 exploration wellbore, Chrysaor’s appraisal of the undeveloped Solan oil field; and finally, Chevron’s assimilation of the results of the three well appraisal programme of Rosebank/Lochnagar and commencement of the 213/27-3 Rosebank North exploration well. These accomplishments bode well for significant development activity and investment together with the installation of important new oil and gas production and export infrastructure in the area.

Faroe Petroleum has now established interests in the Southern North Sea gas basin both in the UK and the Netherlands. The properties acquired represent both appraisal and undeveloped gas discoveries.

Netherlands
In August 2006 Faroe Petroleum acquired these undeveloped gas field discoveries from ConocoPhillips: Minke Main field was brought on production in June 2007 and a development decision is anticipated in 2008 on the nearby Orca gas field.

The assets are situated in UK Blocks 44/24a,29b and 30 (Faroe’s interest 5.89%), approximately 25 kilometres east of the producing Caister-Murdoch gas fields and 13 kilometres south west of the D15 platform in the Dutch sector. In addition, there is the potential for the undeveloped fields to extend over the UK border into Dutch waters with the possibility of additional reserves within Dutch Block D15b (Faroe 5%). Exploration potential also exists within Dutch Block D18a (Faroe 2.5%).

Board of Directors and Key Management

Directors
John Bentley	Non-Executive Chairman
Graham Stewart	Chief Executive
Iain Lanaghan CA	Finance Director
Helge Hammer	Executive Director
Tim Read	Non-Executive Director
Roger Witts FCA	Non-Executive Director
Nils Sørensen	Non-Executive Director
Senior Management
James Jordan	Exploration Manager
Mark MacLennan	Senior Business Development Manager
Julian Riddick	Company Secretary

Company Address Faroe Islands 24 Carden Place, United Kingdom AB10 1UQ Telephone: +44 (0) 1224 650 920 Facsimile: +44 (0) 1224 650 921 Email: uk[at]faroe-petroleum.com Website: http://www.faroe-petroleum.com

Additional Address/Key Contact Norway Faroe Petroleum Norge AS Øvre Strandgate 124 Postboks 309, Sentrum 4002 Stavanger Norway Tel:  +47 51 21 51 00 Fax: +47 51 21 51 01 norge@faroe-petroleum.com Faroe Islands Føroyar Kolvetni P/F Bryggjubakki 22 P.O. Box 1098 FO-110 Tórshavn Faroe Islands Tel:  +298 350 460 foroyar@faroe-petroleum.com

Capital Total; 29,307,741; 27.98%

Shareholder Capital Shares in issue; 104,745,161; 100 %

Nominated Brokers Nominated Adviser and Joint Stockbroker Panmure Gordon (UK) Limited Moorgate Hall 155 Moorgate London EC2M 6XB Joint Stockbroker Tristone Capital Limited 28 Grosvenor Street London W1K 4QR

Nominated Advisors Panmure Gordon (UK) Limited Moorgate Hall 155 Moorgate London EC2M 6XB

Major Shareholders

Dana Petroleum plc	28,834,649	27.53%
Artemis Investment Management	7,852,734	7.50%
AXA Framlington Investment Managers	7,195,343	6.87%
Landsdowne Partners	6,635,224	6.33%
Henderson Global Investors	5,321,036	5.08%

Related News

26/07/10 - Faroe Petroleum Embraces Maria As Its Halten Terrace Strategy Starts To Pay Off
26/04/10 - Faroe Petroleum Has A Third High Impact Exploration Success In A Row – This time in The Norwegian Sea
14/01/10 - Faroe Petroleum Joins Exploration Big-Hitters As It Sees The Potential In Greenland
24/11/09 - Topaz Shines For Faroe Petroleum, Lifting Group Output North Of 2,000 Boepd
14/10/09 - Tornado Fires Up For Faroe Petroleum
28/09/09 - 2009 Starts To Add Up For Faroe Petroleum As Drillbit Strike Follows Recent Commercial Successes

Most Recent Statement

26/07/10 - Spudding of Anne Marie exploration well
22/07/10 - Maria Oil Discovery, Norwegian Sea
12/07/10 - Directorate Change
17/06/10 - Result of AGM
17/05/10 - Drilling of Norwegian Sea Maria well commences
14/05/10 - Result of Rights Issue