On Feb. 10, Faroe Petroleum reported operations and guidance for 2017 and 2016 results.
The 2017 exploration and appraisal capex will be about 45 million British pounds, and the development and production capex will be about 90 million pounds, split between 30 million for the Njord area, 49 million for the Ula area and 11 million for the Brage area.
Faroe said it put a hedging program in place—about 85% of gas production is hedged and about 30% of oil production is hedged, both post-tax.
CEO Graham Stewart said 2016 was a “transformational” year as the company acquired a Norwegian portfolio of producing assets from DONG that doubled group production, the material Brasse discovery in Norway, and a successful 66 million pound equity raise.
He also said production from the U.K./Norwegian portfolio averaged about 17,400 barrels of oil equivalent per day (boe/d) last year, and the 2P reserves base increased by 42% to 81 MMboe. Stewart also said the year ended with 97 million pounds of cash position and an undrawn, new US$250 million reserve-based lending facility.
The press release noted that full-year 2016’s total average production was 17,395 boe/d --about 58% liquids and 42% gas–the result of combined production from the portfolio and the recently acquired Ula, Tambar, Trym and Oselvar fields interests.
2017’s average full-year production could range between 12 Mboe/d and 15 Mboe/d from all fields-- 60% liquids and 40% gas.
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