Faroe Petroleum bumps up full-year 2017 production guidance

Norway and UK-focused Faroe Petroleum reported a large rise in full-year 2016 production amid a ramp-up in exploration, while bumping its guidance for 2017.

The oil explorer pegged total average economic production for last year at 17,395 barrels per day, up from 10,530 b/d in the year before, in-line with previous guidance from the outfit.

Faroe attributed the better-than-expected levels of output to the purchase of interests in Norway's Ula, Tambar, Trym and Oselvar fields.

In parallel, its 2P reserves grew 42% with closing reserves standing at 81.3mmboe at year-end, versus 57.4mmboe in 2015.

Looking to 2017, the company narrowed its production guidance to between 13,000 and 15,000 b/d, which was up from the range of 12,000 to 15,000 b/d projected in February.

Faroe did not provide any updates on the Bone frontier exploration well offshore Norway, as some in the markets may have hoped for.

Committed exploration and appraisal capital expenditures in 2017 were seen at approximately £45m pre-tax (£11m post-tax), in comparison to a 2016 post tax figure of £12.1m, fully funded by existing cash and its new four-year Exploration Financing Facility.

Cash at year-end was at £96.8m, up from £91.5m for the year before and in-line with analysts' estimates.