Faroe Petroleum has made an upward revision of its production guidance for the year rising from a 9,550 to 10,500 average barrels of oil per day.
The company said its exploration and appraisal programme for the next year will continue with one frontier well in the Barents Sea and two other field exploration wells, one in the Norwegian
North Sea and the other in the Norwegian Sea.
Exploration costs are also expected to be “significantly lower” next year than in 2015.
Faroe Petroleum has also acquired a 75% interest and the operatorship of the South East Tor oil discovery in Norway from Lundin Petroleum.
The firm said the asset market remains “buoyant” for development projects.
The company, while not expecting to incur material capital expenditure on development related projects next year, said it will consider trading part of its interest in some of its development
projects in order to balance its portfolio.
The acquisition of Roc Oil UK, which includes assets in Blane and Enoch, is expected to be completed shortly.
Graham Stewart, chief executive of Faroe Petroleum, said: “Faroe Petroleum continues to perform very well despite continuing low oil prices, sector instability and some mixed exploration results.
“Faroe’s consistent strategic focus and prudent approach to financial management have ensured that we have a strong balance sheet, an excellent portfolio of exciting Norwegian exploration prospects, a valuable portfolio of pre-development projects; coupled with a strong performance from our producing fields, this positions the Company well to take advantage of further good quality emerging opportunities.”
The company said the Dazzler well in the Barents Sea, which was previously expected to be drilled next year, will now be drilled in 2017.
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