Faroe Petroleum Share Discussion Threads

[wbodger] 20/9/2016 16:17

I did research to answer that question about Oshun, Dobby, Aerosmith/Iris and posted it a while back (#7604). Briefly, Oshun is near Shango/East Skirne in NNS, Dobby is one of the Njord Area prospects (viz Snilehorn, Bister) and Aerosmith is also Norwegian Sea, north west of Maria I think.

They keep referencing Cassidy, which must be a satellite of Butch-Oda, but they have never shown it afaik.

[ed 123] 20/9/2016 15:50

Yes, much as expected.

Good to see they've written down to zero Perth, Lowlander and Dolphin. I wouldn't be happy if they wasted money on that cluster. They'll continue to pay some licence and other bits of cost, though. I'd like them to exit those licences.

Being lazy now, does anyone know where Oshun, Dobby and Aerosmith/Iris are?

Agree, Njord NF chance of success looks better as each day goes by, especially with side-track. Faroe only has 7.5% though.

The bit of the presentation I liked most was on page 14,

Brasse is a game changing discovery for Faroe - potential first oil in 2019, sanction in 2017

I'm still hoping someone will one day want to buy Faroe .... Hi-tec vision?

[wbodger] 20/9/2016 09:52

Unremarkable Interims out, also new Presentation, in the Investor Briefcase.

The reference to Njord NF in the Interim RNS is: "Exploration and appraisal programme continues with Njord North Flank exploration well (Faroe 7.5%) ongoing ... ". I can't quite persuade myself that 'appraisal' in that sentence is significant. Faroe have been referring to their exploration as 'exploration and appraisal' for a while.

Anyway we must be near news of Njord NF.

[rogerlin] 20/9/2016 09:05

Good spot Wbodger, it appears on the map too but seemingly not yet on the list of permits.

[wbodger] 20/9/2016 00:36

There is approval for a sidetrack, 6407/7-9 A, showing on NPD, Wellbore 8050. That 8050 is quite a lot higher than the 8029 issued for the main shaft 6407/7-9 S, which implies it was granted a permit more recently. Ie. I guess they will soon start a Njord NF sidetrack if they have not already done so.

[rogerlin] 19/9/2016 08:21

Over a month at Njord North flank now, no sign of any tugs, cautious optimism in order perhaps?

[rogerlin] 16/9/2016 08:39

Statoil seem to be investing large sums in the future, there is Johan Sverdrup, Mariner, Aasta Hansteen for a start and now Njord A. Lucky IMHO that Faroe have only a small stake in this as the costs could spiral.

[scaff55] 15/9/2016 19:26

Kvaerner awarded more work on Statoil’s Njord platform
9/14/2016

OSLO, Norway -- Statoil has made a call-off from the framework agreement for upgrading of its Njord A semi-submersible platform. The contract, which includes preparations and docking of the platform, has an estimated value of $42.4 million USD.

On April 1, Kvaerner signed a project framework agreement (PFA) with Statoil for upgrading of the semi-submersible platform Njord A. The PFA is based on a project execution plan, where Statoil at key milestones, has the option to call-off the execution of further phases. The first call-off for front-end engineering and design was signed at the same time as the PFA. In May, Statoil made a call-off for work at Kvaerner's yard at Stord.

The option that now has been called-off is for preparations of reconstruction and execution of docking of the platform, which includes removal of the derrick, flare, lifeboat system and inspection. Prefabrication of time critical elements, mainly two pontoons that will increase the buoyancy of the hull, is also part of the scope-of-work.

The platform is moored quayside at Kvaerner, where it will be situated until the derrick, flare and lifeboats are removed. Simultaneously, fabrication of two new pontoons will commence. Work on the dry dock phase is expected to be completed in August 2017.

[rogerlin] 14/9/2016 19:33

Thanks Scaff55, perplexed initially by Oda but it is a new name for Butch.

[scaff55] 14/9/2016 19:13

Pareto conference presentation 14 September 2016

On there website.

[fsawatcher] 14/9/2016 18:25

yeah look that way

with atlantic out, split now goes to 60.05% Parkmead and 39.95% faroe.

Faroe obviously thought the 5% increase in reserves not worthy of comment

agree, on development goin no where fast

DONG assets now faroe priority

[redrossi] 14/9/2016 17:46

By all accounts it's Atlantic's they'd of defaulted in there billings and there interest has been split between PMG & FPM in proportion to there holdings .....not significant for Faroe to RNS surely....on a side note a really can't see this asset progressing anytime soon

[sludgesurfer] 14/9/2016 12:41

PMG are very furtive with their RNSs. I don't really understand why they dont say both seller and cost (if any). Personally i think they've just picked up a bigger share of a sour dog that will never bark.

[rogerlin] 14/9/2016 11:58

I think this must be Atlantic's stakes?

[rogerlin] 06/9/2016 16:38

Some still believe in the Barents.

[rogerlin] 05/9/2016 08:34

Platou has the Boas Bison and Jarl down to move the "Songa Dee", if that is the Songa Delta then the Njord North flank drill may be nearly over, not yet a month which doesn't seem too promising.

Edit. No, wrong about that, there is a Songa Dee.

[ed 123] 01/9/2016 11:20

Hi Wbodger.

The majors like to protect dividends and move their capital around the world to where it will get the best return - hence their sales of North Sea interests. Centrica's 'giveaway' confirms the North Sea is a buyer's maket.

The future price of oil? For oil company investors, imo, OPEC needs to re-unite. As the market re-balances (end of 2017?) and the oil price edges up (hopefully!), there will be temptation to raise output. I know the US shale drillers will up their output but I think this can be accommodated.

Hi Rogerlin.

LOL! You're beginning to sound like me!

FWIW, I like the directors at Faroe and I think they are genuine people. The shift into development was a result of the lower oil price and consequent closing of interest from majors in buying into the discoveries of the minors. Faroe wasn't willing to sell reserves too cheaply and so it had to continue to fund its share (thinking Butch here). Njord A was forced upon Faroe by major asset failure. There is big value for Faroe in Brasse. I'd like them to keep hold of their 50% - that means more development down the line.

That last placing has exhausted appetite and there are shares wanting a longer term home. Appetite could be raised by going fully listed and by paying out a small dividend.

Going forward, imo, Faroe should reduce its exploration expenditure. They still find it hard to resist the allure of elephant hunting (Barents and now Celtic Sea). It doesn't need more discoveries, however, it does though need cash for development. The recent acquisition will of course help greatly.

[rogerlin] 01/9/2016 08:33

Previously Faroe's plan was to keep up their rate of exploration wells in Norway but to avoid development. Recently there seems to have been a change, with likely developments at Njord future, Pil and Bue, Butch and now Brasse. I can see why Norwegian companies like Statoil and Detnor develop fields in Norway, because they have close links to the Norwegian state. What I am not sure of is whether Norwegian development will be profitable for other independent companies such as Faroe, given the tax take on production profits. Will there be anything left over for the shareholders? If we are going to stop looking for elephants then how about a dividend, small at first no doubt, but growing to reflect future increases in production.

[wbodger] 01/9/2016 00:31

I rather wonder at big companies abandoning North Sea exploration too hastily.

Tuesday, Detnor, which is to become Aker-BP (so not short of exploration muscle) announced a discovery in PL442, in which they hold a 90% stake. It was drilled with a jackup, and contains 24-74 mmboe. Detnor took over as Operator from Centrica as recently as April together with CNA's 30% share of the licence. The announcement names three licences, PL442, PL026 and PL026B: "After a review of our portfolio we have decided to transfer our ownership in three licences to Det norske. These licences are no longer core to Centrica and we have other priorities we wish to focus on in Norway " ... As compensation, Det norske agreed to cover the expenses of the licences with effective date of January 1, 2016.

I have also been reading some sobering assessments of the consequence to PoO after 2018 following the collapse of exploration budgets. For the relatively small amount of cost involved in a jackup-rig campaign Centrica might come to wish they had kept some projects going.

[bluerunner] 30/8/2016 12:43

Simon Thompson of IC has reiterated a speculative BUY recommendation for FPM in the past hour.

[wbodger] 24/8/2016 21:00

re #7727 I had to look twice at the date, because the article makes no reference to the DONG deal which had been announced 4 weeks earlier. There is a reference to the placement, but perhaps the DONG deal was omitted for caution while there was still a chance of pre-emption by the ULA partner BP.

That is an intriguing reference to the quality of the Pil reservoir sands and what might be a new model of deposition. It explains the initial excitement (hopes subsequently dashed), and indicates they are still trying the answer the question of where the oil went. VNG's silence might end with a new campaign?

[rogerlin] 24/8/2016 09:07

Not sure of the significance of Faroe's comment on the Melke, it seems to be the deposit just deep to the Rogn and was encountered in all the recent wells in any case. Will the new interpretation lead to some new targets being defined? VNG seem to say nothing.

[ed 123] 23/8/2016 15:44

Nice article, Rogerlin, ta. :-)

Interesting that they are certain Pil's hydrocarbons migrated from the Melke formation.

The share price is still suffering from the placing, imo. I thought we had left 70p but not so. Currently 67.75/68.00p in the market.