North Sea operator Faroe Petroleum has cut its production forecast due to ongoing maintenance problems with the Njord field.
The conpany previously expected production to be at the lower end of its 7000-9000 barrels per day, but said today it now expected average production for 2013 to be down to between 5500 and 6500.
The company confirmed today that start-up of the Statoil-operated field was now delayed until the second quarter of 2014, to allow additional time to plan and carry out repairs.
But despite the shortfall Faroe saw half year profits rise for the first part of 2013 to £12.2million, more than treble the same period last year.
Earnings and revenue fell slightly, with pre-tax earnings down from 62.8million in 2012 to £56.9million this year, while revenue dropped £1.6million to £89million compared to 2012.
The company is looking to drill five new exploration wells off Norway over the next few months, after work began on the Snilehorn prospect last week.
The wells – one of which, at Novus, will be operated by Faroe – could yield a potential 85million unrisked barrels of oil to the company, with exploration for the next year fully funded from existing resources.
“We have completed three exploration wells, and have recently commenced drilling on the first of six wells to be drilled over the coming period – all located close to existing producing fields and infrastructure,” said chief executive Graham Stewart.
“We are excited about the two back-to-back Butch wells which will explore the south west and east sides of the large salt structure where we made the significant Butch main oil discovery in 2011, together with our operated Novus well on the Halten Terrace in Norway. Our focus on frontier exploration continues and we have further strengthened our strategic position in the Barents Sea with a licence award in the 22nd Norwegian round, in strong competition with many other companies.
“We are pleased to have strengthened our production portfolio through the recent completion of the East Foinaven oil field acquisition and by bringing the Hyme oil field onstream in March 2013. The Group’s significant tax capital allowances in Norway and large carried forward tax losses in the UK ensure our production provides tax-efficient cash flow to fully fund our active exploration programme.”
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