Nice to Michu
02 Dec 2016
Re: Chunky buys I hear you hub. I have recently decided to prioritise this over and Amerisur and Ithaca in my p/f towards growing out from a small to a medium sized position. I even more clearly now think that this is too low a price and will have/will be buying in small tranches up to 85p ( I hold lots of other oilers also, many of which are producers.. This is now one of my top three favourite producers )Good Luck to all holders here..
Hub
02 Dec 2016
Chunky buys 125,000 98,12509:45:53 78.5 125,000 98,12509:45:42 78.5 248,271 194,893Nearly £400k bought there at 78.5pAs I said, Faroe looks cheap considering there 18k+ 2017 productionThey will only be 7kbopd short of Ithaca and the biggest difference is Faroe have cash in bank and zero debt whereas Ithaca have $598m debt!Market difference? Faroe priced at £273mil and Ithaca... £355milI like both companies a lot, but Faroe looks a decent £100mil market cap short of where they should be. An sp of around 100p looks fair against peers. An sp of 200p+ looks fair based on assets and 2c resources in today's market.HUB
Hub
01 Dec 2016
Looks cheap now Post OPEC deal and assuming Dong acquisition completes, Faroe are likely to be knocking out close to 18kbopd at poo near $60pb next year.They have the dazzler exploration to look forward which is priced in for freeOPEC deal changes everything and in theory makes the DONG deal an absolute steal.Should be back into the 80's pretty soon assuming PoO continues towards $57pb to $60pb range which I think it looks likely to achieve. Just need Russian cut confirmed next week and Poo should get through $57pb.HUB
forwardloop
01 Dec 2016
Re: info MalcyFaroe PetroleumThe company has announced that the FDP for the ODA( formerly Butch) field has been submitted to the Norwegian Ministry for Petroleum and Energy. The company are using an innovative solution for the hydrocarbons, the field ties back to the Ula platform where the oil will go to the UK via the Norpipe system and the gas will be re-injected into the Ula reservoir to improve recovery. It looks like a win-win situation as over the last two years of developing the plans investments costs have fallen by 40%. This proves yet further advantages of the Dong acquisition and means that Faroe’s success with the drill bit in recent years is even more vindicated.
forwardloop
01 Dec 2016
info [link] Petroleum plc (LON:FPM) is moving the Oda – previously known as Butch – oil field closer to production with the submission of a development plan to the Norwegian authorities.Oda is located in shallow water and is just 13 kilometres from the producing Ula field.It is estimated to contain 42mln barrels of oil equivalent reserves, of which 95% is crude. And peak production is forecast at around 35,000 boepd.The proposed development will see two production wells connected to the Ula platform, in a sub-sea tie-back.Oil production would be transported via the Norpipe system to the Teeside Terminal in the United Kingdom, whereas Oda’s gas be sold for re-injection at Ula to improve its oil recoveries.Faroe owns a 15% stake in Oda and 20% of Ula. The company’s share of Oda’s peak production is estimated at 5,250 boepd."Oda is another outstanding example of the exploration success Faroe has had in Norway,” said chief executive Graham Stewart.“I am very pleased to announce that the development plan for the Oda field has now been submitted, signifying an important step for Faroe's future production growth.“Following the successful Hyme development, Oda is the second Norwegian subsea tie-back development that Faroe has participated in, located in one of the company's core areas.“Faroe is well-funded for the development with cash on hand and an undrawn reserve based lending facility available.”
Wordbodger
30 Nov 2016
ODA PDO RNS issued by Faroe. OffshoreEnergy's story covers it with a Centrica headline, but CNA have not put out an RNS themselves:[link] amounts to Faroe getting 55% of the compensation for the Oselvar infrastructure which Oda will use, and paying 15% of the commissioning costs for Oda (GS quotes £82 million net to Faroe (15% of 5.4 billion Kroner). )When Oda starts - probably a full year in 2020 - FPM's 15% share is 5,250 boepd. For comparison, Oselvar produced at 1,000 boepd in 2015, but is already well down this year. - my estimate for three quarters of this year is 750 boepd net to Faroe. As it was tagged for decommisioning after 2018 that decline would have continued. So Faroe will add up to 5000 boepd for £85 million. 2P Reserves at Oda are estimated at 42 million barrels, 6.3 million net to FPM.
Nice to Michu
26 Oct 2016
Very impressive that this is up today.. when most other oilers are meaningfully off, off the back of the softness in POO in last day plus...I've bought in here recently in a small way and am happy to grow my position out in line with increasing s/p, if this s/p does indeed increase.Malcy wrote the following on it a day or so ago too: ( And in my experience Malcy gets a good few more right than wrong.. granted he does get a few wrong though 
)Faroe PetroleumFaroe (FPM) took a group of analysts for a site visit last week to see the Njord A platform currently awaiting dry dock at the Kværner Stord yard in Bergen. After completing a refit the platform will return to the Njord area, hopefully for another twenty years of production, now to include Snilehorn and the Pil/Bue discoveries.Faroe has taken the opportunity in the last two years of oil price weakness to hunker down, concentrate on fewer wells in Norway and bolster its financial strength.Having raised money just before the crash it remained financially strong and this has been added to by the raise of £66 million this August, more than was needed for the Dong acquisition. 2016 will prove to have been a good year to buy assets and strong companies like Faroe have taken advantage and will likely do so again.The Dong deal will come out cheaper and more efficient that initially planned and Faroe will make a final payment of around $35 million (£28.6 million) in November or December of this year to complete it.With £122 million of cash on the balance sheet, the company is likely to make more acquisitions, probably back in the UK sector, but don't rule out some trading of portfolio assets if monetisation is more efficient. Indeed whilst the reserves based lending may be replaced with a similar facility of up to, say, $250 million, it may be looking for more innovative financing via convertibles or other such high yielding instruments.The exploration strategy adopted by Faroe in recent years has consistently delivered commercial discoveries which have fed through to reserves and production. Along with the acquired assets this means that this year Dong's 10/- barrels per day (b/d) will more-than-double current production, currently guided at 16-18/- b/d, and the five-year plan is for 40-50/- b/d from the existing portfolio.Faroe is taking advantage of this perfect storm of increased production: development costs falling and accretive acquisitions, not to mention exploration success such as at Brasse at this time.With some high-upside wells to come, such as at Dazzler over the winter and appraisals at Brasse and Fogelberg, plus others, the tax-efficient drilling in Norway should provide excitement.Faroe has consistently delivered on its strategy of being a well managed, strongly funded company with a base of exceptional exploration success building towards a very strong production growth scenario.Combine that with a successful acquisition policy with hopefully more to come, and investors may have overlooked FPM to their cost. A stalwart of the bucket list and a readily achievable target of at least 125p.DYOR AND GOOD LUCK TO ALL FELLOW HOLDERS HERE
ESTABLISH THE FACTS
20 Oct 2016
SOME HEAVY BUYING Couldn't help noticing that there has been some having trading in this particular share, a lot of buys during late trading, high volumes. Any particular reason? My holding in this one is quite high so in a weak oil price, this is of interest to me.
forwardloop
19 Oct 2016
info [link]
Hub
11 Oct 2016
Re: Decent Volume looking at the holdings rns today, it seems henderson have been off loading stock which might explain the higher volumes of late and the rather static sp against wider market/poo recoverynice when ii's buy but not so great when they rotate/reduce holdingsHUB
Hub
07 Oct 2016
Decent Volume Faroe liquidity not always great due to large II's holdings and small free float. But of late, there's some decent volume getting chucked about.The placing at 70p to II's would have almost certainly knocked any major buying in the open market as their coffers were filled on that raise.But have to say, Faroe are looking a little vulnerable at this price as any offer above 100p+ could see II's backing.Faroe are the ideal the candidate for a Ithaca merger in my opinion as they the reserves and and more importantly, they have the 2c resource which can be converted to reserves quite swiftly.Ithaca have $598m in debt and with PoO at $55pb+, they should be able to pay that off before the 2018 and 2019 deadlines loom.But after that, their contingent resources look fairly low. The opportunities to build another Stella type project look limited. Yes, they have decent satellite ops outside Stella but these are not high in reserves. They are projects that offer 4mmboe or 5mmboe.Due to the lower PoO environment, mergers are long overdue amongst many of the NS players.Enquest/Premier etc Faroe/Ithaca or Parkmead/Ithaca and so on.A well planned merger could see opex drop from a new industry base of $25pb to $20pb or lower.Interesting times ahead. I see M&A kicking off very soon indeed.HUB
ookyfly
07 Oct 2016
Re: 80p I sold some Ithaca and Premier 10 days ago on that basis. Faroe has indeed lagged behind. Gee, up, horsey!
ookyfly
07 Oct 2016
Re: 80p I sold some Ithaca and Premier 10 days ago on that basis. Faroe has indeed lagged behind. Gidiyup, horsey!
tamdee
06 Oct 2016
Re: 80p Directors loaded with shares share price held low to make a cheap take offer bid look good/ Aker Bp.. ?. they get more of Butch, Njord and the rest.?.
Hub
06 Oct 2016
80p Faroe lagging many of its peers.If Ithaca is 74p ranges, then Faroe should be 85p+ on a simple alignment basis.Some stocks will recover quicker than others but Faroe seems quite stuck in the mud at 73p/74p range.Considering they should exit 2016 with a production rate nearer 16k to 18k, it's surprising to see the stock not move into the 80's by now along with general recovery.Perhaps a rerate due 'once' the DONG deal completes.Hard to believe that the II's that took the 70p placing did not have an eye on a decent 50% profit opportunity from that position (target 105p).Faroe looks cheap at the moment. Sometimes the market can be slow to catch up.BP's move into Butch assets certainly caught my eye and bodes well for Faroe imho.HUB
