Faroe upbeat after strong 2017

Faroe Petroleum, the Aberdeen-based energy explorer and producer, yesterday said it was well placed to grow further in 2018 after a strong operational performance over the past year.

In an operational update, the Aim-quoted group said that its average production of 14,300 barrels of oil equivalent per day – composed of 55 per cent liquid and 45 per cent gas – was at the upper end of its guidance for 2017.

Production this year is expected to lie between 12,000 and 15,000 boepd, split 67 per cent to 33 per cent between liquid and gas.

Faroe said this initial forecast reflected “short-term uncertainty” on both the upside potential of the new wells due to come on stream on the Tambar and Brage fields, and the duration of the temporary shut in of the Trym field.

It will narrow the production forecast when there is greater clarity on production from these fields.

The update came a day after Faroe announced it had sold a 17.5 per cent stake in the Fenja field in the Norwegian Sea to Suncor Energy Norge for some $54.5 million (£39.2m). Faroe is retaining a 7.5 per cent stake. Chief executive Graham Stewart said yesterday: “2017 has been another very good year for Faroe with strong operational performance enhanced by a general recovery in commodity prices and market sentiment.

“As we embark on another very busy year for the business, Faroe is again well positioned to capture the growth opportunities which we continue to generate from our balanced portfolio of development and exploration and appraisal opportunities, backed by our sustainable and increasingly cash generative production base.”