Faroe Petroleum asset purchases pay off

UK company Faroe Petroleum has reported a pre-tax profit of £14.3 million for 2011, a significant improvement upon the £26 million loss made by the company in 2010.

Such a significant turnaround in the company’s fortunes can be largely attributed to an asset swap deal conducted with the Norwegian state player, Petoro. This deal benefited Faroe greatly by boosting annual revenues from £15.1 million to £80.2 million. In addition, recoverable oil reserves held by the company grew more than 500% to 28.3 million bbls.

The news of the profits caused Faroe’s share price to increase by 6% to 162.36p/share.

Faroe’s CEO, Graham Stewart, said, “Our portfolio of exploration licences ensures Faroe has a very exciting drilling programme ahead, including around five high impact exploration and appraisal wells per annum and a very active long term programme of production in-fill wells.”

According to a report released by the company, Capex for 2012 is set to be approximately £180 million, with £100 million to be used on exploration and the remaining £80 million to be spent on development. 

Read the article online at: https://www.oilfieldtechnology.com/exploration/27032012/faroe_petroleum_asset_purchases_pay_off22/