FAROE Petroleum saw its annual pre-tax losses narrow yesterday.
The company, which has its headquarters in Aberdeen, also announced a rights issue to raise £69.8million before costs to finance its exploration and appraisal drilling programme.
The 0.666 for one rights issue at 100p a share, a 30.6% discount to Monday’s closing price, is fully underwritten but was not well received by investors and Faroe’s London-listed shares closed down 4% at 140p yester- day.
Faroe also reported pre-tax losses of £11.8million for the year to December 31, compared with losses of £28.8million the year before, helped by the sale of its Breagh gas field interest in the UK North Sea for £27.3million. Full-year revenue increased three-fold to £7million.
Chief executive Graham Stewart said: “2009 was an outstanding year for Faroe Petroleum. Most importantly we achieved significant drilling success with two west of Shetland wells, Glenlivet and Tornado. The company’s stake in the highly successful Breagh gas field was sold for a substantial profit.
“Our finances have remained healthy and well-managed to ensure we have the resources to finance our exciting, ongoing drilling programme, with eight wells so far firmed up for near-term drilling.”