No seller, someone wants in very low and acting like they know they have all the time they need for that.
Two drills were running. Then a analyst site visit staged with subsequent news releases/broker views ("buy").
Then a duster (Darwin), more like a first peek in virgin territory, and (preliminary) results on a prospect (North Uist = discovery) that took more than a year and still ain't over... but these seem to have enough impact to take the company back to a summer 2010 sp like nothing ever happened since.
So... Are they looking for a target where they'll sweat the newly sucked in investors out? Or is one of the many possible surprises imminent and are they enticing sells and/or after stoplosses?
From: Results of North Uist frontier exploration well, RNS Number : 6380B, Faroe Petroleum PLC, 05 April 2013
Results (...) pleased to announce (...) 213/25c-1V exploration wel (...) SEVERAL reservoir objectives, THE most significant of which WAS the North Uist prospect. (...) The well reached a total vertical depth (...) in the target section. An extensive data set has been collected, including wire-line logs, pressure data and side-wall cores. A FULL FORMATION and volume evaluation is underway. PRELIMINARY results indicate varying reservoir quality and the commercial potential has YET TO BE evaluated. The shallower Cardhu prospect encountered traces of hydrocarbons.
This deep water frontier exploration well (Blocks 213/20b, 214/16b, 213/25c) is located near to Chevron's Rosebank oil discovery, also on the Corona Ridge, west of the Shetland Islands.(...) the Stena Carron drill-ship. The well will now be plugged and abandoned, as PLANNED.
Graham Stewart, Chief Executive of Faroe Petroleum, commented:
"After a long period of drilling activity on this wild-cat exploration well, we are pleased to have MADE A DISCOVERY in the North Uist exploration well, although we had however hoped for better quality reservoir. The result proves ANOTHER WORKING HYDROCARBON SYSTEM in the frontier west of Shetlands which is GOOD NEWS FOR FURTHER PROSPECTIVITY in these UK waters. The partnership will now undertake extensive analysis of the considerable volumes of data and samples COLLECTED from the well operations before deciding on THE NEXT STEPS."
Wish they had better luck with the drillbit, but then this wouldn't be 116p now, peeps. Be assured our 'big friends' are loading up in 'stealth mode'.
WoS is all but over, first steps Iceland and Greenland (Chinese love it!) and then ofcourse the portfolio. Just have a look at the UK one by itself. If they don't fastrack some mature ones themselves somebody is going to hit the ground running with a little injection.
Production forecast? Great time for the acquisition of producing assets so, if they catch some, an 'outperform' almost a given.
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