Faroe lifts exploration spend as it nearly doubles its turnover

JUNIOR stock market-listed Faroe Petroleum yesterday lifted the amount it plans to spend on exploration and development this year, as it pushes ahead with its North Sea drilling programme.

The explorer, which has assets in UK and Norwegian offshore fields, pledged around £170m in investment this year, including around £120m on exploration and £50m on development and producing fields.

Over 2012, Faroe spent £161.4m on exploration and development, up from £96.2m over the previous year.

With increased investment comes increased production, and Faroe is targeting output of between 7,000 and 9,000 barrels of oil equivalent a day for this year – up from an average of 6,900 in 2012.

It comes as the explorer posted an annual loss after tax of £5.2m, down from a £47.4m profit in 2011. It close to doubled its turnover to £158.8m, from £80.2m the previous year.

Chief executive Graham Stewart yesterday said Faroe had an “exciting and material drilling programme ahead” with five high-impact exploration and appraisal wells planned for this year.