Oil explorer Faroe targets long-term output goals

Faroe Petroleum, the Aberdeen-based energy explorer and producer, has flagged an upturn in production as it invests heavily in new and existing fields.

Releasing an operational update, chief executive Graham Stewart said the firm was “one of the most active and successful explorers in the sector”.

While first-half average production fell, investment activity will lead to increased productivity in the second half “as well as the years ahead”, Stewart noted.

Faroe said first-half group production averaged 12,402 barrels per day, with the current rate at around 15,200.

Stewart said that he was confident in the firm’s ability to achieve its longerterm production target, which is to grow output to 35,000 barrels per day by 2021/22.

The chief executive told investors yesterday: “Our focus on maintaining balance sheet health has combined well with improved oil prices to deliver a stronger net cash position as well as markedly improved liquidity.”