Press

Faroe Petrolem: Operational Update and 2018 Guidance


 

 

Faroe Petroleum, the independent oil and gas company focussing principally on exploration, appraisal and production opportunities in Norway and the UK, is pleased to provide an update on operations and guidance for 2018.

Highlights

  • 2017 average production of 14,300 boepd at the upper end of 2017 guidance
  • 2018 production is expected to be in the range of 12,000 to 15,000 boepd
  • 20% increase in 2P reserves to 97.7 mmboe at year-end following the successful Brasse appraisal well in 2017 and after adjusting for the Fenja transaction announced yesterday1. Year-end 2C resources are 78.6 mmboe, as adjusted for Fenja
  • Fully funded for Brasse and ongoing development projects: Oda; Njord Future; Bauge and Fenja, following the divestment of 17.5% of Fenja
  • High quality E&A drilling programme under way for 2018 with two wells already drilling: Iris/Hades and Fogelberg and with three further wells added: Rungne, Cassidy and Pabow

Graham Stewart, Chief Executive of Faroe Petroleum commented:

“2017 has been another very good year for Faroe with strong operational performance enhanced by a general recovery in commodity prices and market sentiment. A highly successful appraisal well on our Brasse oil and gas discovery in Norway and its conversion to 2P reserves, combined with positive reserves revisions in Ula and Tambar led to Faroe's highest ever recorded year-end 2P reserves at 97.7 mmboe, an increase of 20% even after adjusting for the reduced interest in Fenja announced yesterday. The Tambar production project commenced last year and the two infill wells have now been drilled and early results are very positive showing good potential for increased production with the new wells expected on stream during February.

“We announced yesterday that we have agreed a part-disposal of 17.5% of Fenja to Suncor, reducing our working interest from 25% to 7.5%. As well as generating an immediate cash consideration of $54.5 million, this will decrease our future capex on Fenja from an estimated £232 million to approximately £70 million. As a result, and with our existing cash position and unused debt, we are now fully funded for the operated Brasse project, which remains uncommitted at this stage, as well as our committed and ongoing Norwegian development projects.

“As we embark on another very busy year for the business, Faroe is again well positioned to capture the growth opportunities which we continue to generate from our balanced portfolio of development and exploration and appraisal opportunities, backed by our sustainable and increasingly cash generative production base.”


Visit source site

fp.fo/news/operational-update-and-2018-guidance/

Operational UpdateFaroe PetroleumNorwayArval UKUnited KingdomProduction

More items from oilvoice


Petrofac: Completion of Sale of 49% of Mexico Operations

Petrofac has completed the sale of 49% of the Company's operations in Mexico to Perenco (Oil & Gas) International Limited (“Perenco”), following approval from the Federal Competition Commission of Mexico (COFECE). Under the terms of the sale, announced on 30 July 2018, Petrofac has been paid an in ...

OilVoice Press - OilVoice


Posted 2 days agoPress > PetrofacDivestmentMexico +2

Petrofac: Completion of Sale of 49% of Mexico Operations

Petrofac has completed the sale of 49% of the Company's operations in Mexico to Perenco (Oil & Gas) International Limited (“Perenco”), following approval from the Federal Competition Commission of Mexico (COFECE).

OilVoice Press - OilVoice


Posted 2 days agoPress

Rystad Energy's Oilfield Service Newsletter: FPSO Market Alive and Making Strides Again

The global floating production market has stirred back to life after enduring a couple years in virtual hibernation during the downturn. Last year brought some relief to the market, with six new FPSO orders worldwide , and with oil prices recovering to around $80 per barrel this year, combined w ...

OilVoice Press - OilVoice


Posted 2 days agoOpinion > Rystad EnergyOilfield ServicesFPSO +4

Equinor Further Focuses NCS Portfolio

Equinor has signed an agreement with PGNiG to sell its non-operated interests in the Tommeliten discovery on the Norwegian Continental Shelf (NCS) for a total of USD 220 million. Tommeliten Alpha is a gas/condensate discovery that was made in 1976. Through this transaction Equinor will dives ...

OilVoice Press - OilVoice


Posted 2 days agoPress > NCSNorwegian Continental ShelfOffshore +7

SDX Energy, Far Ltd

SDX Energy SDX has announced that the discussions with BP re a significant package of assets have been terminated by ‘mutual agreement' and the suspension of the shares has been lifted. Paul Welch, CEO said he was ‘clearly disappointed that the transaction had not materialised' and that ‘we are ...

OilVoice Press - OilVoice


Posted 2 days agoOpinion > MalcyMalcysMalcy's +4
All posts from oilvoice