Faroe Petroleum shares jump as rising gas prices see revenues surge

SHARES in Faroe Petroleum, the Aberdeen-based explorer, rose strongly yesterday as it announced it had cut losses and seen revenues surge on the back of rising gas prices.

Graham Stewart, the chief executive of Faroe Petroleum which is 27.5 per cent owned by Dana Petroleum, also spoke of the prospect of a new major shareholder in the company if Korea National Oil Company succeeds in its bid for Dana

"There are a lot of unknowns about KNOC in Europe but they have already been involved in the North Sea with the Captain Field and I'm told they are highly respected and very professional."

His comments came as Faroe announced losses before tax in the six months to 30 June of 3.8 million, down from a loss of 6.1m loss last year. Revenue increased to 9.27m compared to 2.94m in 2009. The company announced two discoveries of oil and gas in Norway during the period.

Shares in Faroe rose by 10p, or 6.12 per cent, to close at 173.5p.

Meanwhile Dana yesterday reported that an exploration well has begun drilling offshore of Mauritania, West Africa.

It also hit back at KNOC over its statement yesterday that Dana's planned acquisition of Petro-Canada's UK interests did not alter its valuation of the company.