Faroe Petroleum annual loss decreases

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12 April 2016, Oil, Gas

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Revenue for the year ended December 31, 2015 was GBP112.98 million, compared to GBP128.76 million for the year ended December 31, 2014.

Gross loss for the year ended December 31, 2015 was GBP31.97 million, compared to a gross loss of GBP12.52 million for the year ended December 31, 2014.

Operating loss for the year ended December 31, 2015 was GBP111.35 million, compared to an operating loss of GBP152.64 million for the year ended December 31, 2014.

Graham Stewart, CEO of Faroe Petroleum, commented: "2015 was another year of growth and good progress for Faroe despite a backdrop of significantly lower commodity prices. We delivered our exploration drilling programme safely and under budget, adding further material 2C resources, and doubled our 2P reserves in high quality assets, principally in Norway. Our diverse North Sea production portfolio also outperformed expectations, averaging 10,530 boepd with lower unit operating costs of $23 per boe, down by 30% from the previous year.

"We stated a year ago that we would aim to run a cash-neutral budget for 2015 and we are pleased to end the year with cash of GBP91.5 million (2014: GBP92.6 million) after drilling five exploration wells and acquiring further interests in the Blane and Enoch production assets in the UK. This outcome is testament to the quality of our portfolio and our consistently prudent financial management, in what remains a very difficult market. Looking ahead to 2016, the business is in a good position to face the continuing challenges of our industry and to seek to capitalise on our relative financial strength as we pursue attractive consolidation opportunities in our core areas on the UK and Norwegian continental shelves."

Source: MarketLine

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