Faroe's pretax loss narrowed to
Production fell, however, to 14,349 barrel of oil equivalent per day from the 17,395 boepd recorded in 2016. This was due, Faroe said, to temporarily suspended production on the Njord and Hyme fields and the natural decline of others.
The company is guiding for production in 2018 of between 12,000 boepd and 15,000 boepd, of which 67% will be liquids and the rest gas.
Faroe said the increase in revenue, and therefore profitability, was due to higher accounting production in 2017 of 14,139 boepd compared to 8,026 boepd the year before as well as stronger oil prices. Accounting production excludes all pre-completion production from a project.
Faroe said its medium-term objective is to reduce unit operating expenditure and full cycle costs further than it has already done so, and it said it is on target to more than doubling production to 35,000 boepd "in the medium term". Operating expenses in 2018 is guided to be between
The company's main producing fields in
Development projects include Brasse, where it completed a feasibility study in 2017, as well as the Oda field, the Njord and Bauge fields, and Fenja.
Chief Executive Graham Stewart commented: "Financially, the year was strong for Faroe, generating Ebitdax of
"Faroe now has the distinct advantage of being in a fully-funded position and with clear line of sight to deliver material value growth, whilst continuing to pursue our significant exploration, appraisal and infill programme. Opportunities to accelerate further growth through potential value-accretive acquisitions and disposals also continue to be a major focus for the company going forward."
Shares were down 0.2% on Tuesday at
