Faroe Petroleum Share Discussion Threads

[investordave] 07/12/2017 15:06

God knows but it's bloody annoying. Massive fall and unexpected. Always happens when I've just topped up.

[rogerlin] 07/12/2017 07:52

KL Saltfjord down to pre-lay the Island Innovator for Centrica, could this be starting a bit sooner than expected?

[ed 123] 06/12/2017 09:36

Good that Faroe is not going for any of these licences. Mostly they are in the Barents, so too expensive for a tiddler like Faroe, imo. More generally, Faroe has plenty of discovered reserves and resources, so they should be picky about where they explore - only where it would make good commercial sense at a low oil price if they were to find something.

[rogerlin] 06/12/2017 08:05

Faroe seem to have given this 24th round a miss, no more walrus hunting for the time being.

[wbodger] 05/12/2017 12:53

hxxp://www.offshoreenergytoday.com/aker-bp-sells-stake-in-valhall-and-hod-fields-to-pandion/

It's only 10% but the article quotes Aker-BP: After we announced the Hess transaction, we have seen strong interest to partner with Aker BP in the Valhall area. Through this transaction, we get a partner that shares our ambition of developing the upside potential in these fields.

Pandion energy is backed by Kerogen Capital, an independent private equity fund manager specializing in the international energy sector. (Familiar name to HUR shareholders among others.)

[ed 123] 05/12/2017 11:24

Yes, Statoil and partners had a lucky break with timing. If the discovery had been made a couple of years earlier, then they'd likely have committed at $80 break-even.

Back home, timing was also on the side of Faroe with its asset buys during the oil price trough. Jon Cooper might have been anxious mid-year, when Brent dipped back to $45 but now he'll be singing. If I were him I'd be looking at some more forward sales.

Approaching the year end. I wonder what Faroe's production target range will be for 2018?

Three months to wait for the report but I'd expect it to throw some light (even if by reading between the lines) on the reasons for the bond issue. No new deals atm but I've no doubt they have fairly continuous dialogue with others.

[rogerlin] 05/12/2017 10:48

Statoil plan for Johan Castberg in the Barent's, say it will be profitable above $35 a barrel.

[bountyhunter] 04/12/2017 12:28

Brent header chart rolled to front month

[rogerlin] 04/12/2017 11:32

Thanks Harry, an encouraging piece.

Faroe have spudded their well just in time, Lundin have finished their drill in the Barent's and now again there is just one active exploration well on the NPD map!

[ed 123] 01/12/2017 21:59

Thanks, Harry Rags, very kind of you. :-)

The Times has tipped Faroe in the past too. Maybe they operate an rns alert and the Aerosmith spud prompted this update? Whatever, it can't hurt to get Faroe's name out there for good reasons. :-)

[harry rags] 01/12/2017 16:19

Article from the TimesFaroe Petroleum Spinning the drill bit to look for oil and gas is a precarious business at the best of times. The price drop from almost $115 a barrel in 2014 to less than $30 by early last year made it even more risky.Faroe Petroleum, however, went into the industry downturn in better financial shape than many of its peers. As a result, it has managed to strike interesting acquisition deals while also keeping its exploration activities going. The latter undoubtedly is helped by its focus on Norwegian waters, where the taxation system means that 78p out of every £1 spent on exploration can be recouped. Yesterday it started drilling on its latest prospect, named Aerosmith, which is estimated to have up to 140 million barrels of oil.Alongside that, the Aberdeen-based company's balance sheet looks solid ahead of a few years of heavy investment as it starts to turn some of its oil finds into producing fields. A £75 million bond financing was completed this month, while Faroe has an untapped, reserves-based lending facility of nearly £190 million as well as cash of £117 million.Graham Stewart, chief executive, is confident that production will treble over the next five years to between 40,000 and 50,000 barrels of oil per day simply from the assets that Faroe already owns and is developing. One of the largest contributors to that is likely to be the Brasse field, near the coast of Norway, which is tipped to be able to produce 30,000 barrels each day. Development of that is expected to cost in the region of £400 million, with first oil tentatively expected in 2021. The Fenja field further up the coastline is also expected to come into production that year. Oda, where Faroe has 15 per cent of the licence, is scheduled to start operating in 2019.Faroe spends an average of $25 for each barrel of oil it gets out of the ground, so any further strengthening of the oil price will further improve the financial position of the business. Tighter global supplies have pushed the price towards $64 this week.Its shares have recovered from less than 44p in January last year to be consistently around 100p in recent weeks, reaching 101¼p yesterday. Most analysts have a target price of more than 120p. ADVICE BuyWHY Faroe's track record, financial position and clear road map to higher productionShareSave

[ed 123] 30/11/2017 20:45

Ta, Sludgesurfer. I did wonder, as it seemed a bit buoyant today. Link below but behind a paywall.



Can anyone give a one line summary, without breaching copyright?

I've not posted for a while. My latest thoughts ....

Four more exploration wells ahead to mid-2018. If they have another material find, what will they do about development? I think this $100 million bond was needed (as an alternative to yet another placing) to allow them to hang onto their existing percentages. Brasse now to cost Faroe about $300 million at 50%. If they find something material to the north(Extension or NW of Brage) at 50% and 40% how do they get the funds to develop? Hope the timing will be slow enough to allow cashflow from Brasse to come to their aid? Btw, I'm presuming the offers they got for parts of Brasse and/or Pil were not attractive, hence the bond.

Well, if it happens, it'll be a pleasing problem to have. The obvious answer to me (but I'm a pi wanting a good profit) would be to sell out the whole to Delek. I can't see management wanting to follow that course, though - would need a push from the institutional major shareholders. (Delek's shares rose 4% today, market cap £1.1 billion.) Delek seem to have the financial capacity, as they are buying back their own shares in the market atm. However, their current overseas interest is reportedly in the Gulf of Mexico and Canada. It's possible there'll never be a move for Faroe; it may just be a passive investment for Delek? Who knows?

If Faroe hang on, right through to first oil at Brasse and Pil, they could be receiving approximately $300 million pa (post opex, until capital costs are recovered). Post tax and post capex recovery, that production might be worth £1.50 (?) per share. Add to that the value of any undeveloped reserves and resources - total might be approaching £2 per share? Lots of variables and risks, and moving into the future, so who knows?

[sludgesurfer] 30/11/2017 19:21

FPM tipped in the Times today

[rogerlin] 30/11/2017 12:07

"Both the primary Lange sandstone target at 4079 m and the secondary Lysing sands at 3395 m were non-commercial oil discoveries. The primary target Lange sands were encountered 19 m deeper than prognosed (TVD) and were 56 m thick with a net sand value of 2.4 m. The permeability encountered was less than anticipated due to diagenesis".

I haven't been able to find the anticipated depth of the the targets at Iris/Hades, but when it was called Aerosmith it was said to be similar to T.Rex. There was some oil at T.Rex (PL431, now inactive) but the reservoir was thin and poor.

[wbodger] 30/11/2017 10:06

Doesn't high temp and pressure imply deeper? (Geology knowledge scanty, I'm afraid.)

[rogerlin] 29/11/2017 08:01

Results will be announced when operations have been completed, which is estimated to take approximately 90 days.

Less than previously suggested but still quite long by recent standards, presumably high temp and pressure makes it slower!

[cwa1] 29/11/2017 07:34

No surprise to any on here:-

Faroe Petroleum PLC Iris/Hades (Aerosmith) exploration well commences



Graham Stewart, Chief Executive of Faroe Petroleum commented:

"We are pleased to have spudded this well; not only is it good to end the year with another high impact exploration well but it is also good to be drilling a prospect which has been part of our portfolio for a number of years and which is located in an area we know very well and have had significant success in.

"The Iris/Hades (Aerosmith) well marks the end to our 2017 exploration drilling programme, which has continued to deliver value and an industry leading success rate of over 30% due to the diligence and hard work of our in-house technical teams.

"We end 2017 in a great position, with a pipeline of high quality, world class development projects, to grow materially our production and with a very strong balance sheet, which we recently further strengthened with the successful issue of a $100m unsecured bond. I look forward to updating the market on Faroe's progress in early 2018."

[jasper2712] 28/11/2017 16:48

Plenty of activity but unfortunately not with the share price especially when the oil producers are up 3% .

[wbodger] 28/11/2017 12:33

That's a better story, r, more thorough. It was the possible IPO which caught my attention. It will leave Faroe as an increasingly important independent explorer. (Assuming Delek leaves it independent, of course.)

[rogerlin] 28/11/2017 08:05

Good spot Wbodger, here's another version.

[wbodger] 27/11/2017 23:42

Merger talks between Wintershall and DEA?
hxxp://www.offshoreenergytoday.com/talks-of-dea-and-wintershall-merger-come-to-light/

DEA is owned by LetterOne, Mikhail Fridman's company, and Executive Chairman is Lord Browne.

Things do seem to be heating up in the oil patch.

[zingaro] 26/11/2017 12:44

Well if sqz open below 50 on thursday i will ditch my fpm and add to my sqz. I,m fed up with fpm and do not like the 8% bond/debt.

[rogerlin] 26/11/2017 11:35

Far Sigma and Normand Prosper now towing the rig up to PL644, likely spud next week.