Faroe Petroleum shares rise on operational update

Shares in Faroe Petroleum rose 3.3% on Wednesday, after it posted a better-than-expected operational update.

Faroe said production for the five-month period from 1 January to 31 May 2015 averaged 11,324 barrels of oil equivalent per day.

It said lower production costs meant the average operating cost per barrel of oil equivalent was approximately $22m over the same five month period.

This was significantly better than the forecasted $30 per barrels of oil equivalent, Faroe said.

Westhouse reiterated its ‘buy’ rating for the stock and kept its target price at 135p.

Westhouse analyst Mark Henderson said in a note that the operating update was “strong.”

“The company remains well funded with some potentially material wells yet to come in 2015 and looks set to deliver a better than expected operating and financial performance in 2015,” Henderson said.