LONDON (Alliance News) - Faroe Petroleum PLC on Tuesday raised its full-year production guidance after it said it is continuing to perform above expectations, but said that the results from its Blink exploration well were "disappointing".
Shares in Faroe were trading down 7.2% at 66.85 pence Tuesday morning.
The oil and gas company said production remains strong, averaging approximately 10,350 barrels of oil per day in the year to date. As a result, and as no significant further shut-down periods are expected at any of its largest fields, Faroe has increased its production guidance to between 9,500 and 10,500 barrels of oil per day for the full year 2015.
"Faroe Petroleum continues to perform very well despite continuing low oil prices, sector instability and some mixed exploration results. Faroe's consistent strategic focus and prudent approach to financial management have ensured that we have a strong balance sheet, an excellent portfolio of exciting Norwegian exploration prospects, a valuable portfolio of pre-development projects; coupled with a strong performance from our producing fields, this positions the company well to take advantage of further good quality emerging opportunities," Chief Executive Graham Stewart said in a statement.
However, Faroe also said its Blink exploration well in the Norwegian Sea delivered disappointing results.
The objective of the well was to test the hydrocarbon potential of the Upper Jurassic reservoirs analogous to the Pil, Bue, Boomerang and Draugen field reservoirs. The well encountered a 557 metre gross section of Upper Jurassic sandstone following a technical sidetrack, and reached a total vertical depth of 3,710 metres below sea level.
Preliminary analysis from wireline logs, pressure and fluid sampling showed that the well encountered clean water-wet sandstones with good reservoir properties, but with no indications of hydrocarbons.
The Blink well followed on directly from the Boomerang exploration well which encountered a 26 metre gross Upper Jurassic intra-Spekk/Rogn sandstone containing estimated recoverable resources of between 13 million and 31 million barrels of oil equivalent.
"Whilst the results of the Blink well, the last in this year's campaign, are disappointing, we look forward to advancing the options for monetising the significant combined Pil, Bue and Boomerang discoveries, on which the Blink well result has no bearing," Stewart said.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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