Faroe Petroleum Share Discussion Threads

[rogerlin] 06/4/2016 13:57

Perhaps not imminent, but I can't see anything about the decommissioning costs in Faroe's announcements.

[wbodger] 06/4/2016 11:00

Wisting looks like a good discovery. It does explain Faroe's commitment to drilling Kvalross. (It's rather a long way north of the Kvalross/Kvaltann licence though, which is the green licence at the bottom of the graphic.) OffshoreEnergy picks up the NPD release, with quotes from OMV and Tullow.

They didn't encounter OWC. which is interesting, and the only estimate of resource is from prior to that appraisal. It looks quite big.

-----------------------------------
I don't know what to make of this: Decommissioning of Brae.
hxxp://www.offshoreenergytoday.com/report-marathon-speeds-up-brae-decom-plans-after-recent-gas-leak/

Enoch would be FPM's only asset affected, but it may be premature anyway (see denial in last two paragraphs.) We now have 13.86% of a small field that has only produced a dribble (in December) so I hope the 12% of decommissioning costs for Enoch are the responsibility of Roc Oil. (The key to the Enoch acquisition was Blane, which has been producing okay.)

[rogerlin] 06/4/2016 08:26

Result from Wisting appraisal. Pity it wasn't Kvalross, but encouraging for the Barents in general.

[rogerlin] 01/4/2016 16:24

Still hoping there might be something to add to Pil, Rosapenna perhaps, and VNG will surely not give up yet on PL586 but I see that in Rosapenna Statoil is the operator and so VNG will not determine the timetable there.

[wbodger] 01/4/2016 13:30

Apologies for again following up my own post,
Further attractive exploration well opportunities under consideration for 2017 via farm-in.

Any farm-in would put them on a JV partner's timetable which they have so far done well to avoid. They also have interesting acreage of their own which should not be overlooked: Rosapenna and Zircon around Njord, Katie and two recently-reissued licences near Butch. SE Tor (assuming an appraisal route is chosen). Rungne north of Oseberg, near Brage. From the presentation on the Brage/Brasse page: "79 wildcat exploration wells since 1975 - 62% technical success rate (this is high by any measure)".

Interesting licences will have to be dropped in Norway if a drilling decision is not made by 2017, so there's not much point adding more.

I have the feeling that a farm-in might include a Celtic Sea stab, but DYOR.

[rogerlin] 31/3/2016 14:11

"It is expected that the Njord Future Project, which includes the Njord and Hyme fields, development of the Snilehorn field, and potentially further fields in the area, will take approximately three years from when the project is sanctioned before the facility is back on production".

That was the line that struck me, looks like a long job. An extra exploration well would be nice, need something to keep us all awake! No mention of the Celtic sea as far as I could see.

[wbodger] 31/3/2016 12:24

Following up my remark about the infrastructure for Schooner and Ketch, Conoco want to terminate Theddlethorpe infrastructure:
hxxp://www.ibtimes.co.uk/conocophillips-plans-close-one-north-seas-biggest-gas-pipeline-systems-1551990

Presentation supporting FPM Results is on InvestorBriefcase on FPM 'Investors' page. They have firmed up Cassidy as a drill in 2017. Presumably somewhere near Butch (which goes to FDP this year, so it cannot be critical for that decision).

FPM have not added any more drills for 2016 or 2017 but this line is interesting (Page 4): Further attractive exploration well opportunities under consideration for 2017 via farm-in

[rogerlin] 29/3/2016 08:37

You have the timing right Wbodger, and the caution too by the look of it.

Article in Investors Chronicle "Oil Survivors" (Mark Robinson and Alex Newman) I have only got hard copy but it is most general and concerning large caps, only two small caps mentioned, Faroe and Bowleven. For Faroe it says "...particularly well placed to profit when oil prices finally stage a sustained recovery from current depressed levels". We live in hope.

[wbodger] 28/3/2016 15:36

Faroe's results last year came out on 24/03, which was a Tuesday. Perhaps this year they will be Tuesday a week later, 29/03/16.

Noreco is no more, so FPM's partner for SE Tor if they announce an Appraisal campaign would be Detnor (if they keep the 15%). The FPM February Presentation mentioned SE Tor. The webpage states FPM are deciding between a standard appraisal/development and a phased approach based on a self-funded low cost early production..

Detnor picked up Noreco's Exploration/Appraisal assets (including 45 million crowns in the bank and 20% of Gohta) for one crown. Gohta might require agreement with Lundin? Gohta was a three-way split 40-40-20, Lundin, Detnor, Noreco, and presumably Lundin has matching rights, so I expect it could end up 50-50.

Faroe seems to have made the decision not to pick up distressed assets (Atlantic, Noreco, Iona, Sterling Resources have all gone, more to follow) where it would involve commitments. No real sign of an end to the shake out. As rogerlin posted, M-Vest only paid one crown for Atlantic Petroleum's Norway operations, and Atlantic's Market Cap is 62 million NOK (around £5 million) so the market doesn't expect much of a bid for the UK/Ireland assets some of which are forfeit.

FPM's caution may be because of uncertainty over Njord 'A'. Results might give a hint.

[rogerlin] 25/3/2016 08:32

Some progress at Atlantic Petroleum. They sold their Norwegian portfolio for 1 NOK but still have a number of UKCS interests. Only Orlando is specifically mentioned in the announcement.

[harry rags] 22/3/2016 17:54

Oil price continuing to rise, costs continuing to fall, steady production. Would expect oil price to be nearer $50 before the end of the year if not sooner. If the oil price rises 20/25% the share price will surely follow all IMHO holding

[rogerlin] 16/3/2016 10:57

Thanks Wbodger, May sounds good. We could do with some success. The last three drills on the NCS have all been dry and there are now only three active.

[wbodger] 16/3/2016 09:36

Good post on Alvheim/Brasse, r, thanks.

09:47 Just adding this, after translating the latest Leteuken:
Faroe plans to drill exploration well 31 / 7-1 Brasse in the North Sea. The exploration well is located in PL 740 in the North Sea, between the Oseberg A and Brage - at a distance of approximately 13 km to both installations.
The well will be drilled by "Transocean Arctic." The earliest commence on 15 May 2016 and operations are planned to last 31 days the dry well, and a maximum of 57 days

(31/7-1 does not yet show as a Wellbore on NPD, so no permit yet.)

[rogerlin] 16/3/2016 08:49

"According to Det norske, the contract scope for drilling of four wells in the Alvheim area will take up to 250 days and has a value of approximately $44.75 million excluding options.

The contract will start during December 2016 and involves the drilling of one exploration well at West Volund in license 150B, and three production wells - two wells in license 150 and one in license 203 / 088BS respectively."

This is old and may be out of date. I saw somewhere that Brasse would be drilled "in the summer" and so hoped it might be before Detnor as Kvalross finished early, but the TO Arctic has also had some health/safety issues. We will find out in due course.

[wbodger] 15/3/2016 12:58

PS, there's a good write-up on Alvheim on Lundin website (they have 15%) under Production tab.

[wbodger] 15/3/2016 12:53

My guess is that T/O Arctic is to be used for production drilling by Detnor (65%, operator) at Alvheim. Alvheim/Volund are producing fields in Block 24, close to the median line with UK. They aren't far from Brage/Brasse, all in NNS and southwest of Kristiansund, so re-supply/minor check up seems reasonable before they start, whichever assignment it is.

I had a close look at Brage/Brasse, still hopeful that Wintershall will farm in to Brasse because the infill work Wintershall did on Brage seems to have gone well. The second of two interventions previously announced was completed January 1. (The first one coincided with an improvement in production last summer for about five months; production fell back in December, but it may have helped produce about 164,000 barrels more net to FPM for that five months. (DYOR; it is not possible to separate the effect of previous infill work.) January monthly production is not yet posted.

As previously posted Norway Full Year production should be well ahead of 2014. Results might be out next week (?)

[rogerlin] 14/3/2016 08:26

Transocean Arctic has now gone to Kristiansund and so it doesn't look like it's going straight on to Brasse.

[ed 123] 11/3/2016 11:02

Uk Budget next week, Wednesday 16 March.

There is some hope that the boy, Osborne, will announce a reduction in the tax burden on UK oil and gas companies. I don't expect he will ever fully reverse the damage he did to the industry in 2011 but, if he won't give meaningful support now, when would he ever do it?

Whatever the detail of the Budget, I'd expect some more M&A announcements soon after. I'm guessing the material uncertainty is delaying some agreements.

Encouraging news from IEA today.

[rogerlin] 10/3/2016 15:57

Transocean Arctic has at last reappeared on Marine traffic with an up to date position, in the Norwegian sea north of Kristiansund which is given as its destination. There are no new drilling permits on the NPD list since December.

[wbodger] 10/3/2016 01:10

Ed, it was my reading of this (from the ATLA announcement):
As notified 5th February, Atlantic Petroleum North Sea Limited remains in default on the Ettrick, Blackbird and Chestnut fields. The Ettrick and Blackbird fields are subject to forfeiture by the operator of these fields, Nexen, (acting on behalf of itself and its co-venturers), which if such forfeiture proceeds, is subject to certain regulatory and contractual conditions

My inference was that a company like Nexen would not forfeit a field unless it could not be operated economically. Reading it again, it is just grammatically tortuous, the forfeiture is instigated by Nexen against their jv partner ATLA, after ATLA defaulted.

Thanks for the links. So, Nexen will decommission in an orderly way, which makes more sense.

[ed 123] 09/3/2016 23:54

Ta, rogerlin. :-)

I guess Faroe will be looking at a piece of Orlando, among a lot of other potential asset buys.

Good that Orlando is in UK waters (to set some profit off against Faroe's UK tax losses)..... IF they do a deal.

One day we'll wake up to an asset buy rns from Faroe.

[rogerlin] 09/3/2016 20:02

Atlantic still have 25% of Orlando, but Iona who have the rest are in administration.

[ed 123] 09/3/2016 19:26

Ta, Wbodger.

Did you mean Nexen or Atlantic in your last paragraph?

March 2015, when the oil price was in the mid-$50's/bbl, the partners got an agreement to extend the life of Ettrick and Blackbird.

In March 2015 the Ettrick joint venture signed an amendment agreement with Bluewater Ettrick Production (UK) Ltd, to secure the use of the Aoka Mizu FPSO beyond March 2016. The amendment will mean that the FPSO operating day rate will reduce after March 2016, extending the economic life of the fields and combined with other cost saving initiatives, result in a substantial reduction in the overall operating costs for the Ettrick and Blackbird fields.



That wasn't enough, though. In September 2015 (six months before the FPSO day rate was due to reduce) the partners decided to call the end on production at Ettrick and Blackbird.



Can Atlantic have anything left of value? I don't know.

The oil price is edging up but that won't save a number of overstretched companies. I do hope Faroe are working on an outstanding deal. Their cash position should give big bargaining power.