Faroe Petroleum Share Discussion Threads

[rogerlin] 29/3/2018 08:39

Hades took pride in collecting “subjects̶1; for his kingdom and was disinclined to let anyone leave.

Indeed the Deepsea Bergen PL644 6506/11-10 spudded 28.11.17, no sign of any side track permit, seems to be having some trouble of this kind.

[atyorcall] 27/3/2018 16:03

A long list of very small sales gone through all day,whats that all about

[thegreatgeraldo] 26/3/2018 14:08

On the price front, oil is currently around £50/bbl...... not been too many times in the past when it's hit this level.

[harry rags] 26/3/2018 03:29

$100 may be history but cost of producing a barrel was say $50Profit $50Now we have $70+ with costs about $25 profit $45+ with average price of a barrel expected to rise to $75 it appears to me Faroe and the likes are doing just as well as before however the this is not reflected in the share price. Must be due for a correction soon IMHOI know it is all very simplistic but then I am a simple manHarry

[rogerlin] 24/3/2018 08:07

Recent exploration drills in Norway seem to have been pretty quick, one or two months depending on results, but there are occasional marathon efforts still about. Let's hope that Hades is not one of them!

[atyorcall] 23/3/2018 17:51

Thanks rogerlin for clarifying

[rogerlin] 23/3/2018 16:20

This was posted before I think but Odfjell drilling gave longer times, up to 140 days and possible side track up to 67 days, presumably because of being HPHT. No sign that I can see of a side track permit. The longer the better surely, although who can forget the feats of the Stena Carron in that regard, a year for a duster at North Uist!

[atyorcall] 23/3/2018 14:02

Can anyone give a reason for the delay on the drill well over the 90days now.Oil now over $70 I thought the share price would respond better to that

[ed 123] 21/3/2018 12:03

Agree, Wbodger, and probably they'd want to buy gas production in UK waters.

Rogerlin. Faroe is selling bits of development projects and aiming to buy production. That improves their near-term cash position. They've got this right, imo.

2018 Finals presentation is on the website.



Target production has gradually come down from 50kboe/d to 35kboe/d (due to divestment). That divestment, together with RBL, the bond and hedged production has given Faroe access to enough funds to fully meet development costs, all the way to the 35kboe/d. Good to have that clarity. (The days of private placings are gone, it seems!)

[rogerlin] 21/3/2018 12:01

And to make use of tax losses? Mentioned towards the end of this in July 17 re increased stake in Blane.

[wbodger] 21/3/2018 11:37

Shell exited the Anasuria cluster in the UKNS not long ago and that would have been the right sort of acquisition, imo. Not sure if Faroe had a look? My reading is that GS does want to buy some production in UK to replace S&K. Perhaps to justify the UK salaries !

[rogerlin] 21/3/2018 09:01

Can't really see the point in selling down assets like Fenja and then buying new assets elsewhere. IMHO what differentiates FPM from some other companies in the sector is the lack of debt, I hope it stays that way. If they feel flush with money then how about a dividend?

[wbodger] 21/3/2018 08:50

thanks, I didn't know what bloombergquint was.

Interesting piece.

[rogerlin] 21/3/2018 07:58

Thanks Wbodger, here's a text version.

[wbodger] 20/3/2018 22:42

Bloomberg, interview with GS:
hxxps://www.bloombergquint.com/markets/2018/03/20/faroe-hunt-for-oil-deals-could-see-it-double-size-in-hot-market

[wbodger] 20/3/2018 17:46

One that seems to have been fast tracked is Rungne, targeting c 70 mmboe, impressive for such a small prospect. The Rungne fault is close to Brage/Brasse and Oseberg and they seem confident there are hydrocarbons. Also it's good to have Lundin as a partner, since they have previously explored overlooked shallow prospects in the NNS, like ... Johan Sverdrup!

An odd thing from the Company Presentation is the reminder under Brasse hub area on page 7 to "Brage decommissioning liabilities retained in part by Petoro". Brage is being infilled by Wintershall at present so it isn't an imminent candidate for decommissioning, besides the infrastructure might be needed for Brasse - no decision yet, afaik.

[rogerlin] 20/3/2018 16:19

Faroe has now realised cash returns through this partial-monetisation, while retaining exposure to future cash flows from Fenja. Importantly, the transaction also frees up capital for investment in Faroe's flagship Brasse field which is expected to commence development in 2019, such that Faroe is fully funded for Brasse at its current 50% equity level.

They seem keen to hold on to the 50% in Brasse, which is a big stake for a small company, and some other things are being slimmed down to make that possible. As some of the new acreage has only recently been acquired, the drill on Brasse extension has been pushed out, but it will be an important drill when it comes along.

[wbodger] 20/3/2018 09:31

Results

First impression no surprises. Mostly as reported on the Stavanger Analyst Presentation. (There is also a new Presentation in the Investor Briefcase, which I haven't looked at.)

I think this is new: Exploration And Appraisal Following three separate transactions by Faroe on the Fogelberg licence PL433, all of which are expected to complete in H1 2018, Faroe's equity will reduce from 25% to 15%, with an effective date of 1 January 2018. It presumably affects the cost of the present drill.

Also the update on Trym adds some specifics: Trym is now scheduled to produce for an extended period until mid-2019 before being suspended temporarily in order to allow the Tyra redevelopment works to be carried out over a period of around three years.

Production from Schooner and Ketch is expected to cease in Q3 2018 with the closure of the export system and onshore gas facility at the Theddlethorpe. I think my question would be, is there any point in having both London and Aberdeen addresses? Are they looking at any production in UK to replace S & K? Otherwise UK starts to look like a profit drain.

I'll study more and listen to the podcast later.

It's an increasingly stable investment, particularly for AIM, not so dependent on higher oil prices as some others.

[atyorcall] 19/3/2018 17:01

Im expecting good results tomorrow,oddly marked down today

[dahhad] 19/3/2018 15:46

Hopefully tomorrow's announcement will reverse today's share price movement!

[thegreatgeraldo] 16/3/2018 11:34

I'll stick my neck out - news when they finish drilling.

[harry rags] 15/3/2018 21:24

Recon it will be after the results nowIMHOHarry

[atyorcall] 15/3/2018 18:42

Full year results Tuesday,unless we get some news within the next couple of days then maybe we will get an update then

[rogerlin] 15/3/2018 08:29

Thanks bountyhunter, hopefully a new update will soon be needed to incorporate the massive finds at Hades and Fogelberg!