Faroe Petroleum Share Discussion Threads

[soulsauce] 14/2/2017 10:44

Ed can you tell me if FPM pay a dividend yet? TIA.

[rogerlin] 14/2/2017 08:21

ENI have Skandi Iceman going to the Scarabeo 8 for "call off". The rig can move on its own but it presumably needs a tug or tugs to sort the anchors, don't like the look of this as it is too soon but it could just be going for standby duty I suppose.

Edit. I think "call off" is just the type of contract and doesn't give any clue as to the activity? Still it is a tug and wouldn't normally just do transport duties I don't think.

[hopeful holder] 10/2/2017 15:27

We maybe in for an interesting few months ifDalek decide to bid for us also. This could give this share a kick in the pants or hold it backI Don't expect this to happen until q3 or q4 this year so plenty of time to get cracking.

[rogerlin] 10/2/2017 11:53

Malcy's new bucket list, FPM considered from 6.50 mins, brief but mentions "looking at some stuff back in the UK sector" so maybe as you suggest Ed 123.

[ed 123] 10/2/2017 10:30

The update is as expected. Faroe bought tail end production from DONG, knowing that work was needed. So, lower production in 2017 to (hopefully!) get more in 2018 is no surprise to me.

Interesting that they again say they're looking to buy more production. Wondering if they want a bit more UK production for tax reasons?

Good to see they're making progress on all fronts.

Bit busy atm. Might get chance to look into the numbers more closely at the weekend.

[ed 123] 10/2/2017 09:05

Thanks, jumbo66. And you have a good day too. Like your outlook. :-))

[lowflow] 10/2/2017 08:44

Very poor guidance from Faroe today. 2017 production of 12-15k boepd down from 17k in 2016. Opex per barrel is also going up.
Faroe is blaming maintenance work for the lower production, but when looking at the guidance it becomes apparent that the legacy asset are underperforming.

[jumbo66] 10/2/2017 07:15

Happy days re jumbo have a good day positive anyways enjoy

[ed 123] 09/2/2017 19:20

Ta, CWA1. :-)

[wbodger] 09/2/2017 18:36

There you go. Learn something everyday just by eavesdropping. ;-)

[cwa1] 09/2/2017 16:31

happy days.....

[ed 123] 09/2/2017 12:13

Hi jumbo66.

What does that "hd" bit mean?

[jumbo66] 09/2/2017 10:53

hows it [hd]

[ed 123] 08/2/2017 23:26

Hi Wbodger.

Ah yes, I was also overexposed to oil on the way down. Did some selling as things went down, so didn't crash as heavily as I might have. Much better balanced now and quite heavily into foreign currency earners, following the Brexit vote. Got lucky with MP Evans, bid came not long after I'd bought in. Got a good holding in ITV - tipped by many as a likely takeover target. Also wouldn't be surprised if Home Depot moved for Kingfisher. Holding KGF too.

When I read of Delek taking the Dana holding in Faroe I thought about a combination of Ithaca and Faroe. Tempting ........ the combination could be a Fully Listed contituent of the FTSE 250 Mid Index. Payment of a (small) dividend and it would be open to being held by many more institutions. That would result in a higher market rating.

I'd guess Delek will bid for Faroe once the former gets its Full London listing. Maybe I'll exit Faroe within a year at c. 140p? We'll see.

Hi Rogerlin.

Thanks for all your posts. - helping me keep up to date. :-)

[wbodger] 08/2/2017 10:38

Yes it is striking that there have been no drills east of Brage. I tried flagging all the switches on the Interactive Map Wellbores, but nothing came up for 31/7. There was a dry hole west of Brasse, 30/9-23 in 2011, worth a look.

The seismic picture on Page 7 in the new presentation suggests why they applied for PL740B. It makes sense to confirm that model before a FID. Brasse on Page 6 already looks wider than in the September presentation. From 12/1/17 RNS: "The main objectives of the appraisal well [into Brasse] are to reduce the uncertainty in the reserves estimates and to provide important additional information for the development project."

(Ed. I was overexposed to oil on the way down, hence my close attention. The Resources (not just oils) finally repaid the faith, hope you did well.) I read speculation that Delek might get a London listing themselves for their Oil vehicle, which would have implications if they plan to make a move for FPM - then they could offer paper or cash. That would be one way of merging Ithaca and Faroe!

[rogerlin] 06/2/2017 20:41

It's extraordinary that a drill on the "possible Brage extension" PL740B should be down as "possible" for 2017. They must be confident of something! There don't seem to have been any previous wells east of Brage in either blocks 31/4 or 31/7, perhaps there is seismic from a previous licence, since lapsed? There seem to be a series of faults, with similar Jurassic strata, between Brage and Troll, which isn't so far to the east.

[ed 123] 06/2/2017 18:13

Sounds like you had a very good 2016. Well done, Wbodger!

I don't think we have access to data concerning the number of bids and prices for blocks 'put on the block'. Possibly Faroe was in for lots but others outbid?

I like that Faroe took on the Pil block and succeeded when others had tried but failed to find anything commercial. Similarly, I pressume the Brage partners were non-believers in Brasse. Gives me some hope for the likes of Canela and Aerosmith (though tempered by results such as Portrush and Boomerang!). I'm not sure about the Brasse extension - maybe some icing on the cake? If anything is found it should be very low cost to produce (4km or so from the underutilised Brage facility).

I'm planning to hang onto my Faroe shares. If Faroe is not forced into a merger it may trade at 200(?)p when Brasse comes online (end of 2019?). That would be back around its all-time high. :-)

[wbodger] 06/2/2017 17:06

Yes, still holding Ed. I gave a lot of thought to another purchase in the 90s but I was awash in oil, and decided it was time to hold and wait. Thanks for heads up on the Presentation. I'll have a look.

(Extraordinary 2016 for oilies. It was like a switch being turned on in mid January and a wide, consistent recovery for twelve months in those flegling oilies that were still breathing. Spoilt for choice I put a bit in resource Investment Companies because they usually lag the market, reasoning that they will declare good performance this month. Not very exciting but more profitable than FPM since the autumn.)

Faroe are not part of the JV that were granted another go at PL053C to the west of Brage, a JV dominated by Statoil and Petoro, also there is acreage south of PL053C, west of Brage that could have been claimed, so I suspect the focus of FPM/Point's attention will be east, making use of their extension PL740B. Also interesting is that Wintershall have a new partner, Capricorn (Cairn Energy) for their new licence next to Brage, to the north of it. Faroe jilted or not interested?

Anyone else envying Chrysaor's deal with Shell? 115,000 bopd in 2016 (more than half Shell's UKNS production). At $3.8 billion a bit expensive for Faroe but if they had that elusive main FTSE listing they might have got the backing. 20% of Buzzard, 10% of Schiehallion, Armada ...

[ed 123] 06/2/2017 13:55

Hi Hashertu.

Yes, Delek appear to have played this one rather well. To be fair though, they did help Ithaca (shareholders) at a difficult time.

Geopark? It's the Colombia aspect that would deter me.

Back to Faroe ..... Maybe an all paper takeover of Faroe by Premier would be good for both sets of shareholders? A good premium for Faroe holders in exchange for more covenant safety for Premier's shareholders, and more chance of moving forward with future projects?

Faroe is looking vulnerable. Delek could make a move itself or could support another party. Delek recently paid 89p per share for its Faroe holding, so a quick profit is a possibility - then move its cash from any Faroe sale into its Ithaca bid?

[hashertu] 06/2/2017 13:36

I, too, hope Delek take their time digesting IAE. Have you seen the break clauses in the offer?

Bit of reading for the weekend?



Have a look at 2P NAV/share. They do seem to be a well run company (but now listed in US).

[ed 123] 06/2/2017 09:59

Well, I thought Ithaca's shareprice had been a little too strong just lately. Even before today it had been trading above broker price targets. Viz: Fincapp 96p, Macquarie 86p, Barclays 85p.

Were those who bought above broker targets and prior to today simply lucky or did they get 'help'?

I'm not holding any Ithaca but if I had been I'd probably have sold when it went above 100p, ie. before today.

Were you still holding, Wordbodger? If yes, well done!

And what of Faroe?

Delek holds 13% of Faroe, so could be another recommended offer at some point?

What's the chance and what timing would be likely?

Leviathan gas should be flowing by the end of 2019. It's big! 550 mmboe net to Delek. Delek will be very strong with that cashflow. Is that the longstop for Faroe's independence?

[ed 123] 03/2/2017 21:58

Hi Gary38.

Thanks. :-)

Hmmmm .... you say Macquarie relegated Faroe to neutral today. I've read an alternative version ....

MorningStar says Macquarie upgraded Faroe today from Neutral to Outperform, and raised target from 111p to 117p.



Is Donald Trump's concept of 'alternative facts' seeping into the world of stockbroking? ;-O

What is the "true truth"? :-/

[gary38] 03/2/2017 21:22

Hurricane Energy and EnQuest among the few 'buys' left in oil sector - MacquarieShare 11:33 03 Feb 2017"Hurricane offers 82%+ upside to our target price from the current share price, and has the clearest near-term tangible value creation opportunities, in our view.oil platformValuations in the oil sector have caught upIt is harder work picking winners in the oil and gas sector now that crude prices have steadied and share prices have climbed, so says Macquarie.Kate Sloan, analyst at Macquarie, most share prices are close to fair value and as a result many in the sector have been downgraded.Cairn Energy PLC (LON:CNE), Faroe Petroleum plc (LON:FPM), Ithaca Energy Plc (LON:IAE), Premier Oil PLC (LON:PMO) and Tullow Oil plc (LON:TLW) are all relegated to a 'neutral' rating.Three of Macquarie's 'top picks' retain their 'buy' recommendations; Hurricane Energy Plc (LON:HUR), EnQuest Plc (LON:ENQ) and Africa Oil Corp (TSE:AOI).Of the three, Hurricane Energy is deemed to have the clearest value opportunities."Hurricane offers 82%+ upside to our target price from the current share price, and has the clearest near-term tangible value creation opportunities, in our view."Further exploratory drilling (ongoing) and progress on the Lancaster development could add significant value, building on the success the company enjoyed in 2016."Macquarie has a 90p price target for Hurricane (current price: 51.25p).EnQuest, meanwhile, is Macquarie's pick for further oil price leverage combined with low risk project progression."Although the rest of the sector now reflects a much higher discounted oil price than it did four months ago, EnQuest is still discounting US$63/bbl, the same number it was back in August 2016," Sloan said."We believe the valuation gap will be narrowed in the coming months once the market starts to believe in Kraken delivery."Macquarie has a 79p target price for EnQuest (current price: 46.34p).Sloan added that Africa Oil's has very attractive upside through de-risking the discoveries in Kenya's South Lokichar basin, where it partners Tullow.

[ed 123] 03/2/2017 13:42

New presentation on the website.



Looks good. Faroe really does seem to be on a growth path. The equity issues could now be behind us. Additional cashflow from Ula/Trim, plus Faroe's cash and loan facilities may be enough.

Further acquisition is possible.

I especially like that Brasse is to brought online fairly quickly. First oil 2019/20.

Also, they hope to sink an exploration well into Brasse extension block sometime this year. Location for the exploration well is not given but my guess would be close to Brage, at what appears to be a structural high.

Any thoughts on the location of the Brasse appraisal well? Might they go for the north west corner of Brasse, close to the extension block? That position might help with unitisation with Brage and could give indication of what might lie at the south east corner of the Brasse extension.

Clear path with existing assets to 50kboe/d in 5 years time.

Isn't it time Faroe went fully listed?

Still holding and hopefully will be here when Brasse comes online.