Fresh production drives up Faroe’s revenues

By DOMINIC JEFF
Published on 18/09/2012 18:39

OIL and gas firm Faroe Petroleum enjoyed a boost to revenue in the first six months of the year as production from a series of fields came on stream.

The company, which focuses on the northern North Sea and the Atlantic fringe, said it produced an average of 8,581 barrels of oil equivalent per day in the period, compared to 1,263 barrels in the first half of 2011. Revenue increased to £90.6 million, compared to £40.1m a year ago, which included a sale of assets.

Chief executive Graham Stewart said: “Our production has increased significantly following successful acquisitions of interests in four high quality, long life oil and gas fields in the UK and Norway.”

The group said its loss before tax of £15.9m, down from £24m a year before, reflected “significant exploration write-offs” but was offset by the considerably higher production.

Mike van Dulken, head of research at Accendo Markets, said that while Faroe had raised its full year production guidance, the new figure still implied a slower second half production rate, which was “disappointing”.

He added: “Drilling success rates remain good, but the first half-year was tough, and results from the future programme over the next six months

will thus remain key to the share price.”