Faroe Petroleum said yesterday it had enjoyed an excellent year to date with significant exploration success in the Atlantic margin in the Glenlivet gas discovery, in which Faroe has a 10% stake.
Chief executive Graham Stewart, speaking after Faroe reported results for the six months to June 30, said the company, which has its headquarters in Aberdeen, had also been involved during the period in transactions including the sale of its stake in the undeveloped Breagh gas field for £25.5million.
Another deal in the second half of the year was the swap of Faroe’s interest in the undeveloped Trym gas field in Norwegian waters for producing Enoch and Glitne oil field interests and up to £4million in cash.
Mr Stewart said Faroe had built up a portfolio of assets which combined exploration and appraisal opportunities with a growing production base. He added: “We have a strong balance sheet and a firm, fully-funded, nine-well programme. The company has entered a very exciting period in its development, with several high-impact wells lined up for drilling.”
The company said it had production from three gas fields and two oil fields adding up to around 1,500 barrels of oil equivalent per day.
It also said that at August 28 it had a cash balance of £37million, including the Breagh proceeds, besides access to borrowing facilities. Faroe yesterday reported pre-tax losses of £6.05million for the half-year compared to losses of £2.06million a year earlier. Its turnover for the period was £2.94million, up from £687,000 the year before.
Crude oil futures prices fell sharply yesterday for a second successive session, weighed down by rising US stocks of crude, distillate and petrol, weak demand and a fall in house sales in the US. November crude in New York shed $3.08 to $65.82 a barrel. In London, November Brent crude fell $3.17 to $64.82.