Faroe upbeat on prospects as oil price rebounds

Faroe Petroleum, the Aberdeen-based oil explorer and producer, has seen higher oil prices offset lower production during the first half of the year.

Statutory revenue for the six months to the end of June came in at £67.8 million, down from £80.1m in the same period last year. However, adjusted revenue topped £102.2m, up from £95.5m a year earlier, reflecting higher commodity prices, partially offset by lower production during the period.

Average first-half production of 12,402 barrels of oil equivalent per day from the firm’s existing portfolio compares with a 2017 first-half figure of 14,800 barrels, following a couple of temporary production shut-ins during the first quarter of 2018.

Faroe Petroleum chief executive Graham Stewart told investors: “In the medium term we are targeting material increase in shareholder value and cashflow with our fully funded investment programme across the portfolio, encompassing exploration, appraisal, development and production.”