Faroe Petroleum Share Discussion Threads

[jkx_rerate_is_on] 01/5/2018 13:37

JKX

Almost 10,000 boepd
40m mkt cap
Low cost drilling to increase production
Cash flow positive
Ukranie now one of the best places in the world to drill based on new regulations
Shares rerating after a very poor few years, now at 52 week high
Very little free float avaliable.
Rerate to 50p area now in progress.
Up 20% already today.

[whackford] 01/5/2018 13:34

Market cap £486 now. So 71% = £345. Looks like they are a bit short on firepower (356$m/1.4 = £254m) to finish the job.

[wbodger] 01/5/2018 11:47

IC DNO might instead "seek to use its equity position to exert pressure on Faroe"

26/04 First Quarter results:
DNO Expands and Accelerates Kurdistan Operations While Building Up North Sea Exposure; Reports Robust First Quarter 2018 Results

Full text here: hxxps://newsweb.oslobors.no/message/449698

Last two paragraphs:

... Elsewhere, the Company acquired 28.71 percent of North Sea-focused Faroe
Petroleum plc at a price of GBP 1.25 per share through four separate
transactions in April, complementing DNO's existing portfolio of 19 exploration
licenses offshore Norway and the United Kingdom.

DNO's current cash balance stands at USD 356 million plus USD 280 million in
treasury shares and marketable securities. The Company's outstanding bond debt
remains at USD 400 million and the equity ratio at 61 percent.

(Most of DNO's 16 Norway licences have high numbers indicating that they are quite recent awards. They have 3 licences in UK. One is with Chrysaor, P2074, southeast and adjacent to Hurricane Energy's Lancaster discovery on the Rona Ridge.)

[scaff55] 30/4/2018 16:29

When Dea Norway chose to withdraw from the Fogelberg license (433) last year, the other owners, Centrica (now Spirit Energy) and Faroe Petroleum shared the share between them.

But now there are two new owners in the license.

Both Polish PGNiG and Dutch Dyas have chosen to invest in the project.

PGNiG, which is an abbreviation for Polskie Górnictwo Naftowe in Gazownictwo SA, is Poland's largest natural gas company. The company is sub-privatized, and the Polish state still owns 71.88 percent. Previously, the company owns shares in Gina Krog and Skarv.

Dyas is a newcomer on the shelf, and the Fogelberg license will be the company's first asset on the Norwegian shelf, provided that the transaction is approved by the Norwegian authorities.

Delimited now
The appraisal well that Island Innovator now drills in the license will determine the future of the discovery. Mediator Faroe Petroleum had good news from the drilling two weeks ago.

"Reservoir quality is better than in the wellbore, with a deeper gas-water contact," Faroe wrote in a stock exchange announcement.

A good result from the appraisal well will likely lead to a new development and investment of several billion NOK in the Norwegian Sea.

"This is in many ways" make or break "for Fogelberg. The project has been marginal for a long time, and we need more information before making any decision to expand. The well we now drill is intending to test both the size and the production properties, and we will see if we are satisfied with the answers we receive, "said Viggo Tjensvoll, vice president of Spirit Energy, to petro.no before the results from the well were known.

Must deliver PDO in 2019
The Fogelberg discovery is located 18 kilometers north of Åsgard, and estimated volumes are currently around 63 million barrels of oil equivalents, most of which are gas.

Spirit Energy and its co-owners have chosen a subsea link to the Åsgard B platform for the development.

And last year, the license was postponed to submit a development plan. The new deadline is 30 June 2019.

This according to documents petro.no has access to.

"The licensees have considered several development solutions and selected a subsea development related to the Åsgard B platform. The chosen solution involves gas transportation, Åsgard Transport (ÅTS). There is no available capacity in ÅTS before 2021. The licensees in Fogelberg have booked capacity in ÅTS for the gas years 2021-2023, "the Ministry of Petroleum and Energy wrote in a letter to Centrica, reaching Spirit Energy, in February 2017.

12 month drill campaign
It is planned to drill three production wells. A drilling center is the preferred option, this to minimize the connection costs and to avoid moving the rig. The drilling campaign is estimated to last for about 12 months.

Investments for development have previously been estimated to be between NOK 7 and 11 billion. However, it is expected that this estimate has been significantly reduced since then.

The Ministry has also made it clear that the production license will fall if the owners do not deliver a development plan next summer.

[rogerlin] 30/4/2018 07:27

Mention in Investors' Chronicle (brief entry in list of top 100 AIM companies, FPM being number 50 on the list)..."should investors feel bullish? Possibly not. Instead of a cash offer, Colin Smith of Panmure Gordon believes DNO might instead "seek to use its equity position to exert pressure on Faroe" in ways potentially more favourable to itself than other shareholders. With fewer near-term catalysts ahead (other than higher oil prices), we suspect the shares could plateau from here. Hold. AN".

[thegreatgeraldo] 27/4/2018 19:07

Ooops! Just noticed the helpful note at the bottom of today's RNS,

"Tambar pre-drill expectations were 4,500 - 6,750 boepd net to Faroe, which were expected yearly average rates and therefore not directly comparable to the fourteen days average flow rates above."

[thegreatgeraldo] 27/4/2018 17:35

Cheers thedudie, interesting that Tambar was only producing 2,000bopd back in 2012, so there have presumably been some interventions.

[jasper2712] 27/4/2018 17:09

Don't forget about this in 2 years time

"We have a material and strategic position in the Greater Njord Area through our working interests in the Njord, Hyme and Bauge fields (Faroe 7.5%), as well as the neighbouring Fenja (formerly Pil and Bue) field (Faroe 25%), which are to be tied in subsea to the Njord field host.”

[thedudie] 27/4/2018 16:49

hxxp://www.npd.no/global/engelsk/3-publications/facts/facts2012/figures/chapter-10/chapter-10.pdf

tgg - pg35/48 may give a clue ...

Not clear what interventions were made along the way

td

[thegreatgeraldo] 27/4/2018 16:27

From the Feb 13 update, Tambar last year delivered 1740boepd net to Faroe's 45% interest, which is roughly 4k boepd gross. Wonder how long the current 18,500boepd will be maintained & what the rate of natural decline of the 2 new wells will be.

[tom111] 27/4/2018 10:09

They are laughing they bought at that price,they will have to dig deep into their pockets for the rest though

[jasper2712] 27/4/2018 09:41

Onward and upward . 125p/share they must be having a laugh!

[oli12] 27/4/2018 07:18

another nice little update this AM from Faroe. Production heading in the right direction.

[ed 123] 26/4/2018 16:59

Good anecdote, Rogerlin. :-)

Perhaps the foreign invader will be in the form of Wintershall?

Nice little turn possible for DNO on its 28% of Faroe?

(Just my idle speculation.)

[rogerlin] 26/4/2018 16:32

Said to give warning of foreign raiders.

[thegreatgeraldo] 26/4/2018 12:08

WB - Saw your post & Tjadldur rang a bell!

[wbodger] 26/4/2018 12:00

tgg, thanks for that. I wouldn't be surprised if Lund got DNO in as a white knight to rescue FPM from the clutches of the dastardly Delek.

[gersemi] 25/4/2018 12:52

Apologies - wrong thread

[wbodger] 24/4/2018 20:16

I'm interested if any instis other than DNO have added since the tender. If DNO (or anyone else) is considering a move their intentions might leak, even if they are not able to be active without making a full bid. The big holders here other than DNO are BlackRock, Aviva, Invesco and L&G. Those four plus DNO control over 50%.

I see Deepsea Bergen started its next assignment for Statoil on Sunday. Statoil has it booked for 4 campaigns for (I'm guessing) the best part of a year. So probably no appraisal of Iris and Hades until 2019, unless OMV use a different rig.

[jasper2712] 24/4/2018 17:26

We were stuck at 125p for a week, so at least it has managed to improve.

[harry rags] 24/4/2018 14:49

Seems stuck at 129p perhaps a late surge?

[thegreatgeraldo] 23/4/2018 10:26

That extra platform for the sulphur treatment kit wasn't cheap, but last time I looked (which was quite a while back!), Buzzard had already produced the initial P2 reserves & is still going strong.