Faroe Petroleum Share Discussion Threads

[wbodger] 24/10/2017 18:59

hxxp://www.offshoreenergytoday.com/aker-bp-snaps-up-hess-norwegian-oil-gas-assets/

For interest sake only (Hess has no JVs with FPM afaics).

Valhall/Hod is in the extreme southern part of NNS, in Blocks 2/8 and 2/11. Nearest Faroe interest is SE Tor, in 2/5, not far away. Interestingly Faroe's only JV partner in that is Aker-BP.

[rogerlin] 19/10/2017 17:03

The NPD site shows that there is just one exploration drill on the whole Norwegian shelf, by Lundin in the Barent's. Yes it is autumn but this is dismal, after one comes none! Time to cut the tax take IMHO.

[ed 123] 12/10/2017 16:38

Rogerlin.

Ta. Worth around 30p net of costs per share post tax over the production period?


CWA1.

Ta. Won't shoot the messenger. Won't shoot Alistair Strang either. Anyway, someone lucky enough to get paid for writing that stuff would surely dodge any bullet? ;-O

[rogerlin] 11/10/2017 10:47

And Njord is now the route for Fenja (formerly Pil).

[thedudie] 10/10/2017 17:08

This supposedly will give Faroe 6000bopd peak at start - not sure what decline that will have ( I expect quite slow).
I assume (but don't know if)the development cost is tax deductible ....
If so maybe 18 months to payback depending on your view of POO?
Then solid income for 10-15+ (20?) years with potential of add-ons.

[thedudie] 10/10/2017 16:43

Njord contract let for $722m by Statoil for platform upgrades but not what else will be/has been spent.
Statoils numbers suggest a total invest of just less than 20B NOK but I think that included Bauge. I think this suggests $190M to Faroe but results in an asset with life past 2030 and opens up other areas.
Who knows whether that is good value or not!

[rogerlin] 10/10/2017 16:23

No I have no clue but the question is good one. I am anxious about the costs of Njord, Statoil have deep pockets but they are part of the Norwegian state and their interests are different from ours. Still, all looks better from the right side of 100p.

[thedudie] 10/10/2017 13:41

I just wish someone a lot cleverer than me would look ahead and come up with a guess at the necessary spend to get to the >40000 type outputs pencilled in for what is it 2021 (from memory)?

They have large amounts of financing available and are cash positive and because the fields/developments planned are all incremental early production can add to their cash pile as we go.

So how much debt will they be left with and what will it all be worth?

Anyone have a clue ?

[ed 123] 10/10/2017 12:46

Steady buying interest in Faroe today. Pushing through 100p.

No new news that I can see.

I've read that many funds have been underweight in oilers since the oil price fell. Some may fear being left behind if oil goes up above $60? Perhaps this rise is due to portfolio rebalancing?

Still trading below broker targets. A good choice for anyone looking at oils, imo. (No advice intended.)

[ed 123] 09/10/2017 09:18

Another Barents duster.



Statoil have deep pockets, though. :-/

[rogerlin] 09/10/2017 08:27

Comment in Investors Chronicle on Friday, concludes "Macquarie's analysis of Faroe's low-cost offshore Norway portfolio suggests the company should generate absolute returns of around 20 per cent, even at $50 oil. That's well in excess of the cost of capital, so while it's tempting to book profits on our countercyclical call (52p, 4 February 2016) it represents another strong portent for a measured management team's aspirations for 40,000 beopd by the early 2020's (AN)."

[rogerlin] 06/10/2017 19:40

Also Kufpec, some of the same stakeholders as at Gina Krog, all very complicated.

[ed 123] 06/10/2017 10:08

Thinking back to Goanna, another strange (to me!) well location has been announced today. Not Faroe this time, but Statoil and Total and others. Assuming no mistake in the announcement, they are to put a well into an approximately 1 sq km area of licence immediately to the north of a large oil and gas field. Why would companies as big as Statoil and Total get involved in such a tiny target?



Moving on, oil market data is looking more encouraging. Consequently, the oil price is behaving well for Faroe. Front Brent has regained $57. Reflected in Faroe hovering at the 100p level. Oil could easily go back to $60, imo, and take Faroe to 110(?)p. 110p may be a resistance level.

[rogerlin] 03/10/2017 13:18

"The applications will now be technically evaluated and the authorities will announce which companies will receive interests in APA 2017 in the new year".

Thanks for those links Wbodger, I see Faroe is certainly on the list of applicants for the APA 2017 and we will have to wait and see what they get.

[thedudie] 03/10/2017 12:45

Ah thanks Ed / Wbodger ....

td

[wbodger] 03/10/2017 12:34

Thanks for sharing, Ed. ENI have just had a duster with Scarabeo in Goliat Eye too. I do wonder if FPM have been charged a disproportionate share of an expensive campaign in the Barents charged at pre-crash daily rates.

Thedudie, not a direct answer to your question, but that block of shares Delek bought was always singled out as 'not in public hands' since Dana originally owned it. At one time it was 27% of Faroe's issued equity and might have been a significant holding by an interested party?

[ed 123] 03/10/2017 12:29

Thedudie.

It's an LSE rule (around liquidity requirements for listing), any holding greater than 10% is deemed to be 'not in public hands'. Also any holding, whatever size, by a director is deemed to be 'not in public hands'.

[wbodger] 03/10/2017 12:15

Sorry rogerlin, missed your post #463. It was about the APA 2017 Round (mature areas):
hxxp://www.npd.no/en/Licensing-rounds/Licensing-rounds/APA-2017/APA-2017---announcement/

There was a story on offshoreenergy that applications for it have closed now, which came out just before the latest FPM Corporate Presentation showing the larger image of Brasse field. Coincidence? FPM was mentioned as an applicant, which means they have applied for a licence as an Operator, eg. perhaps Brasse, also if they are going to drill PL740B (Q2/Q3 2018, not yet committed) they would be making plans now.

Here's offshoreenergy link
hxxp://www.offshoreenergytoday.com/norwegian-govt-receives-record-bids-in-apa-round/

[thedudie] 03/10/2017 11:18

Why does the Major Shareholder table referenced by Ed show (towards the bottom) director shares 0.89% then Deleks 15.37% and total them to show shares "not in public hands" 16.26% ?

Why aren't Blackrock and Aviva and etc etc added to the "not in public hands" total but Delek's are?

TD

[thegreatgeraldo] 03/10/2017 10:58

Thanks Ed, so Bone cost around £60 mill to drill, still an expensive well, but more in the ball park for a frontier well. Probably worth the risk given the target size. & the tax rebate!

[bountyhunter] 03/10/2017 10:48

Thanks for posting your reply Ed.

[ed 123] 03/10/2017 10:08

Reply came from Faroe.

I asked about Bone but also, while writing, thought I'd query the apparent missing holdings notices and whether there was an end plan for Faroe. Their response is copied below.

Bone:

Faroe’s total investment in Bone (including seismic acquisition and pre-drilling costs) was £20.4m but thanks to the very attractive fiscal regime operating in Norway whereby we benefit from a 78% tax rebate on the cost of exploration the next post tax cost was £4.9m. The actual drilling costs to Faroe were approximately £12m (post exploration tax rebate £2.64m). Bone was a large exploration prospect targeting significant volumes of hydrocarbons and we believe it was consistent with the company’s risk/return profile. PL716 (Bone) is our only licence in the Barents Sea and we have no plans currently to drill further exploration wells there.



Share trading:

We are a publicly quoted company on the AIM exchange of the LSE and as such have no control over the volume of shares traded. We are not necessarily aware of the identity of who is trading in the shares, as happened in July. As far as we are aware our current list of significant shareholders (> 3%) is correct on our website.



End plan:

Faroe’s strategy is to maximise shareholder returns by developing into a leading E&P player in the North Sea. This we plan to achieve by successfully exploring, developing and producing oil and gas reserves as well as participating in M&A transactions when deemed appropriate. Our medium term goal is to increase production from the current level of c15,000 boepd to 40,000 boepd which in turn should generate shareholder returns. We believe we have a very strong balance sheet and unused debt facilities to help us towards this goal.



Fwiw, I like the people at Faroe. They provide good updates and presentations, and answer private investor queries. Can't say that about all oil companies.

[ed 123] 03/10/2017 09:58

On NPD site today, Tambar development wells to start soon.

... Wells 25/2-19 S and 25/2-19 A were drilled by the Maersk Interceptor drilling facility, which will now proceed to drill development wells on the Tambar field, where Aker BP ASA is the operator.

[thegreatgeraldo] 01/10/2017 19:19

Cheers Ed.