A new report has nearly doubled Faroe Petroleum’s reserves overnight.
The firm, which focuses on exploration in Norway and the UK, commissioned LR Senergy to produce a technical report on the firm’s reserves.
The findings quoted Faroe having plus probable 2P reserves of 60.6 mmboe – a 98% increase on last year’s estimated 30.6 mmboe.
The addition of the Butch and Pi fields in Norway were credited for the jump.
The Butch field will be developed as a subsea tie-back to the BP-operated Ula field. LR Senergy estimated Butch 2P reserves net to Faroe to be 6.4 mmboe.
Chief executive Graham Steward said: “I am very pleased to report this material increase in reserves over the year, generated principally from exploration success and which further underpins the significant value of the Company. This doubling of 2P reserves demonstrates clearly how our consistent strategy is delivering tangible results.
“We look forward to an exciting three well exploration drilling programme for 2016 in Norway, which is firming up on cost efficient terms. Faroe enters 2016 in a robust financial position, with strong production, a solid cash balance and largely undrawn credit facilities.”
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