Faroe Petroleum’s chairman said today that the Aberdeen-based oil explorer was in a “very strong position” ahead of its annual general meeting today.
John Bentley said Faroe had delivered “considerable progress” in terms of exploration and appraisal success so far this year.
Mr Bentley said the London-listed firm’s near-term development programme was fully-funded following a number of divestments, and that the business would take “full advantage” of the continuing low-cost environment.
Rigs have been booked on “attractive terms” to drill five wells on assets in which Faroe holds stakes.
Highlights for the year to date include a first exploration well on the Iris and Hades prospects and a successful appraisal of Fogelberg, where production testing is under way.
Faroe sold 17.5% of the Fenja field development to Suncor for $54.5 million, and farmed out part of Fogelberg to Dyas while retaining a 15% equity stake.
Mr Bentley said: “Faroe is in a very strong position, with an outstanding fully funded value growth profile, material exploration success this year already, all underpinned by significant liquidity.”
Also during the first half of the year, Norwegian oil operator DNO increased its stake in Faroe to 28.7%.
Despite DNO’s claims that it was not making a bid for the firm, John Scrimgeour, executive director of the Energy Institute at Aberdeen University, said Faroe should be braced for a takeover.
Faroe produces 12-15,000 barrels of oil equivalent per day on average.