Thursday, 02 December 2021 07:36 GMT

Faroe Petroleum awarded new exploration areas offshore Norway


(MENAFN- ProactiveInvestors)Faroe Petroleum (LON:FPM) has added six exploration licences offshore Norway via the country's 2015 APA (Awards in Pre-defined Areas) licence round. Chief executive Graham Stewart said the company had been 'very successful' in its application strategy. 'Significantly we have further consolidated our position in core areas of the Norwegian continental shelf in which we have enjoyed recent exploration success enhancing our acreage positions near and around the greater Njord Areas and the Butch development project' Stewart said. As part of a number of separate syndicates Faroe has been given three licences in the Norwegian Sea: the Yoshi (Licence PL836S) Grønøy High (Licence PL845) and an extension to the Aerosmith licence (Licence PL644B). In the Norwegian North Sea meanwhile it was awarded Katie (Licence PL810) Gullaxy (Licence PL811) and the Rungne (Licence PL825). In light of the current low oil price environment Stewart significantly highlighted: 'At this stage no well commitments have been offered and should we and our partners progress these toward exploration drilling Faroe continues to benefit from the Norwegian tax system whereby 78% of all exploration related expenditure is eligible for a tax rebate in the following year.' He also described Faroe's upcoming 2016 drill programme as 'material and exciting'. 'Coupled with strong production a solid cash position and largely un-utilised credit facilities we are confident in our ability to take advantage of opportunities which the current depressed oil price environment presents" Stewart added. City broker Cantor Fitzgerald repeated a 'buy' recommendation and a 100p price target (current price 45p) and said: 'Faroe continues to fill its exploration hopper adding a further six new prospective exploration licences to its portfolio providing options for the 2017-2018 exploration campaign. They appear to come with relatively little financial commitment which will result in significant de-risking. 'Clearly the Norwegian authorities want to encourage and stimulate industry in the region.'


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