Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, edged into the black during the six months to June 30.
Reporting first-half results yesterday, the Aberdeen-based firm said hedging gains of £4.2million helped it to pre-tax profits of £400,000, compared with losses of £20.1million a year earlier.
Revenue grew to £55.2million in the latest period, from £53.5million previously.
Chief executive Graham Stewart said: “Faroe Petroleum continues to be in robust health despite low oil prices, by virtue of our high quality and low-cost production portfolio and prudent financial management – resulting in a strong cash position and low gearing.
“Production has been at an all-time high for the company and operating cost per boe (barrel of oil equivalent) of $22 at an all-time low.
“Our strong production performance and the addition of a new well on the Brage field (Norwegian sector of the North Sea) mean that we are narrowing our (daily) production guidance to 9,000-10,000 boe (previously 8,000-10,000 boe).”
He added: “The drilling programme in 2015 has been very active, notably with exploration wells following the significant 2014 Pil and Bue oil discoveries.
“Faroe’s consistent strategic focus, high quality portfolio and strong balance sheet have ensured that we are well-placed to weather a long period of low commodity prices and take advantage of attractive growth opportunities.”
Faroe said first half output averaged 10,971 boe per day, up from 7,592 boe a year earlier as a result of “good performance and high uptime in the main producing fields”.
Recommended for you
