Faroe Petroleum Share Discussion Threads

[wbodger] 09/3/2016 12:22

Atlantic Petroleum endgame:
hxxps://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=700391&lang=en

ATLA are one of the three remaining partners (FPM, PMG) on Perth, so this may be relevant:
"Atlantic Petroleum is still in dialogue with a London based group on potential solutions for the company. The company is also continuing discussions with its key creditors and stakeholders including the UK Oil & Gas Authority. These discussions are continuing. There is no certainty that a solution or a satisfactory outcome will be forthcoming for the Company and failing that, it is likely that the Company or subsidiaries will go into restructuring or administration."

They got one crown for the Norway portfolio. Sp halved on Oslo today. Interesting that Nexen is in default on Ettrick, Blackbird and Chestnut fields, which would suggest that they are not economic at these oil prices.

[harry rags] 07/3/2016 17:50

WbodgerOil price now $40.90 so should see some upward share movement in the morning IMHO

[wbodger] 07/3/2016 14:54

I just think the price movement in FPM is oil-price related. Ithaca has about doubled in six weeks, PMO very volatile, both from severely-shorted when the oil glut looked terminal for over-indebted companies. It just meant cautiously managed companies like Faroe had less bounce than the basket-cases. Just catching up now, albeit less elastic.

Fair play to PMO for timing their EOn asset-acquisition right, including the emergence from suspension. I suppose FPM have not come across a deal like that, although I wonder if FPM had a look at the EOn assets? Or if ENQ did?

(re. "Are they merging", gosh I hope not)

[ohisay] 07/3/2016 06:32

Faroe mentioned too.
Such a good idea - probably would never have happened without the oil price crash.



Under the plans being discussed, companies could set up a central procurement unit that would buy parts such as valves or piping, which could then be purchased or leased by individual operators.

They could also create other joint back offices, dealing with everything from finance to human resources and logistics.

Such a move would end the practice of increasing differentiation in the equipment that companies use, which has helped drive up costs across the industry. Operators use 28 different shades of yellow paint, for example, to paint their subsea equipment, as well as 250 types of valve stem, each 1/1000th of an inch different in size.

Ministers and regulators have been urging companies for months to collaborate more to try and extend the lifespan of the UK North Sea. Oil and Gas UK, the industry body, warned last month that if oil stays at about $30 a barrel for the rest of 2016, nearly half of all fields will be lossmaking.

[philo124] 06/3/2016 21:11

Are they merging?

[ed 123] 06/3/2016 10:18

The largest independent oil producer in the North Sea has drafted in banking advisers to help it slash its debts in the face of the low crude price after EnQuest’s credit rating was downgraded deeper into junk territory last week by Moody’s Investors Service.



Potentially some cheap pickings for Faroe?

I think we've seen the bottom of the oil price. Time to spend that £100 million or so, sensibly.

[harry rags] 04/3/2016 16:20

Brent now at $38 thought that would move the share price but FPM feels a little unloved

[ed 123] 03/3/2016 11:56

Hi CWA1.

I just came to the board to ask the same but you beat me to it.

I've checked the shorts situation. It seems that GSA Capital Partners have been 0.8% short since 9 December 2015. There may also be other smaller shorts (too small to require notification). Anyway, at some point in time GSA need to buy back about 2.16 million shares. Perhaps that buy back is under way but holders are reluctant to sell = share price rises.

Other than that, maybe there is some big deal being discussed? If so, and with the share price up 9% this morning, an rns should be issued.

[cwa1] 03/3/2016 11:36

Little bit of life in the share price of late, for no particularly obvious reason. Anyone got any thoughts?

[wbodger] 02/3/2016 13:16

If we do proceed with a drill at SE Tor it looks as if our partner will not be Djerv after all. but Detnor:
Noreco announces the sale of its Norwegian exploration activities to Det norske oljeselskap:
hxxp://www.newsweb.no/newsweb/search.do?messageId=396444

Offshoreenergy covers it too:
hxxp://www.offshoreenergytoday.com/det-norske-to-buy-norecos-norwegian-licence-portfolio/

It looks as if Noreco couldn't get approval from holdout bondholders so they dealt with Detnor instead. The assets Detnor acquired include 20% of Gohta, cash, but a commitment to an Appraisal drill at Gohta. Some talk of tax write-offs but you need to be a tax accountant ...

(I think this increases the possibility that Detnor might relinquish the 15% of SE Tor, IMHO, DYOR)

[wbodger] 02/3/2016 10:05

I've just checked, T/O Arctic did its re-certification after Pil, in July 2014, so that should be okay. Not sure whether it will go to Brasse or be moved by Detnor, which has contracted it to drill in Alvheim and Volund in 2016 - posts are around #7359 and following.

[rogerlin] 02/3/2016 08:38

Official result of Kvalross now on NPD. It doesn't say where the Transocean Arctic is going next.

[wbodger] 01/3/2016 16:04

What's that 20% net cost, ohisay? Faroe have 100% of their L014 Celtic Sea licences. If they have a 20% farm-in to Barryroe I would certainly say "drill away" (or should that be Appraise away?) Or are you saying Ireland operate a similar exploration-incentive program as Norway?

I'm afraid they won't want to carry the whole drill cost on L014 though, which has a decision gate this October, so without an extension they might have to let it go. From the webpage L014/1: "Initial interpretation of existing 2D seismic data has revealed the presence of a number of large structural traps within the Licensing Option areas" .

(Edit L014/3 Webpage now fixed, thanks.)

[rogerlin] 01/3/2016 08:37

Tugs Boa Bison and Islands Vanguard and Valiant look to be heading out of Hammerfest this morning. Will they take the Transocean Arctic on to Brasse?

[ohisay] 28/2/2016 10:56

I don't see Porcupine either Rogerlin.
But Celtic Sea is worth another look .It wont be just 16m for the well of course - doubt that excludes demob and testing but at 20% net cost for Blarneyroe not big moolah.
Doubt FPM will do it TBH as clearly more risk but the oil price fall/asset write downs must be creating different calculations.

[rogerlin] 27/2/2016 09:24

If Celtic sea gas is near enough to be tied in to Petronas' existing infrastructure at Kinsale then it could be a good outcome. If new infrastructure is required then the spectre of Corrib comes to mind.

I remember listening to a webcast by Ashley Heppenstall the former CEO of Lundin who was very positive on the Barents Sea. You have to say that Kvalross has been drilled in six weeks apparently without any difficulty and even if not successful there was the hope of a big find. Faroe only have 20% of Dazzler and it's not till next year.

I'm sure that Statoil et al will one day sort the infrastructure to get gas out of the Barents. How anyone is to get gas out of the Porcupine, if gas is found instead of oil, is not clear. But agreed ohisay that there is a better case for the Celtic sea. It was impressive how short a time it took LOGP to drill Midleton, even if it was dry. I see that there are some previous drills marked in the more northerly of Faroe's licences, but have not yet sorted how to look up information about them.

[wbodger] 24/2/2016 14:28

Agreed, about Brasse and Njord NF.

Now if they really want to please us they will dump Dazzler too. Has anyone had a look, it's 75 km even beyond Johan Castberg, much nearer to Bjornoya which is in the winter ice but not frozen all year, so there's presumably an annual drifting ice problem south of it. 450 metres water, miles from anywhere. Madness.

PL810 (Katie, NNS, January 20 RNS) looks interesting. FPM don't have a page yet, but it shows in Faroe's dark blue on the Interactive Map. NPD shows it as southwest and south of Butch, and covers a substantially undrilled space between Ula and Tambar, a missing link in a string of fields from Gyda to Ula North. Jackup territory, not far from Ula.

[ed 123] 24/2/2016 10:42

Kvalross? Not me. Brasse and Njord North are the right type of prospect for Faroe.

Good spot, rogerlin. :-)

[wbodger] 24/2/2016 10:25

Oh, bother. Was anyone ever convinced by Kvalross?

[rogerlin] 23/2/2016 09:35

And one of them at least, Boa Bison, on the move and down as destination Kvalross, although as it's still south of Kristiansund it's got a long way to go.

[rogerlin] 23/2/2016 08:32

Tugs now listed for Wintershall to remove TO Arctic. Too soon for that massive find I'm afraid.

[wbodger] 22/2/2016 19:03

News affecting Butch:

hxxp://www.offshoreenergytoday.com/dong-to-abandon-oselvar-field/

“We are always looking for opportunities to optimize our portfolio, and as announced earlier the plan is to reuse parts of the Oselvar field’s infrastructure to transport oil and gas from the Centrica operated Butch discovery.”

The [DONG Energy] spokesperson further added: “The infrastructure used to transport and process oil and gas from Butch will mostly be the same as that used today for production from the Oselvar field. This will be a good solution for all parties. We will present a plan for decommissioning of the field to MPE in the course of 2016.”

Also the original story from October is relevant, linked from same Offshoreenergy page:
hxxp://www.offshoreenergytoday.com/centrica-selects-subsea-tie-back-to-ula-for-butch-development/

[wbodger] 22/2/2016 12:49

About Barryroe:
L014/1 and L014/2 are next to (PVR) Exola's extension to Barryroe. Before relinquishing the L014 licences FPM should get a sight of Exola's data. Perhaps a farm-in might be more cost-effective than a drilling campaign on L014/1 and 2. (They still have 100% which suggests they can't farm the L014 licences down.) Link to Ireland Offshore concession map:

hxxp://www.dcenr.gov.ie/natural-resources/SiteCollectionDocuments/Oil-and-Gas-Exploration-and-Production/A0_Concession_Map_31Dec2015.pdf

Ed's view of PVR's travails at Barryroe is fair comment, but FPM are an Explorer. There is a serious question whether FPM need more production, since they only use the cash to finance Exploration. Arguably they haven't been great explorers (compared with, eg Lundin, who have found elephants in shallower water), but no matter as long as the cash flow is positive. There should be a chance to load up cheaply on tail-end production but speculating too confidently on a recovery in oil-prices is what got the industry into this fine mess. Also, for FPM, improvement obviously necessary in project selection

On balance if there is more oil south of Barryroe they should plan to drill it, because Barryroe is not far from infrastructure. It's still that pesky problem of finding a farm-in partner, though, preferably a major. If there is a lot of oil somewhere there (and not just a lot of blarney) it's what FPM should be doing. Especially as five years on, perhaps sooner, there will be another spike.