2014 Final Results Introduction Faroes exploration-led and production-backed strategy is delivering exceptional results Significant recent exploration successes in Norway: Snilehorn and Pil Substantial potential being realised across…
2014 Final Results Summary Contingent resources increased by 49% to 109 mmboe 2C including Pil & Bue discovery (2013: 73 mmboe) Reserves increased by 13% with closing 2P reserves at 30.6 mmboe (2013: 27.2 mmboe) 2014 average…
Faroes growth model Building core value and scale Maintain significant portfolio of Prospective Resources Participate in Licence Rounds excellent track record of awards Proactive approach to farm-ins Grow Contingent Resources (2C)…
Robust company going forward Faroe well positioned to take advantage in lower oil price environment Financially robust Uncommitted cash on the balance sheet (92.6m at 31 Dec-14) Significant head-room in existing debt facilities…
Exploration and appraisal Drilling programme: another busy year of E&A All wells being drilled in Norway benefiting from 78% tax rebate incentive Several prospects identified for possible 2016 and 2017 drilling, both operated and…
Exploration and appraisal Shango: near-field exploration well spudded on 13 March 2015 PL627, Total operator, Faroe 20% Located on the northern part of prolific Utsira High Large undrilled Jurassic structure Shango prospect de-risked…
Exploration and appraisal Significant Pil discovery 2 follow-up wells in 2015 2014 discovery Significant success - March 2014 - Faroe 25% Gross columns ca 135m of oil and 91m of gas Well test flowed at a stable rate of 6,710 bopd of…
Producing assets Building production base and growing reserves Diversified production base with infill and near-field upside potential to boost production Brage Oil field in Norwegian Sea - Wintershall operated 2P Reserves (1 Jan-15)…
Production Schooner & Ketch gas fields 2014 acquisition Acquisition in 2014 added production and 2P reserves 2014 average annual production 3,300 boepd Added 5.9 million boe of 2P reserves at 1 Jan-14 Good potential to boost…
Greater Njord Area Development opportunity and strategic position Njord and Hyme: Currently producing above expectation Njord A facility needs lifetime extension - scenarios under assessment Faroe very well positioned in one of Norways…
Contingent Resources Converting Contingent Resources to Reserves Faroe Observations 2C Resources (1 Jan-15) Field WI Operator Others Butch 15% Centrica 2011 discovery Lowlander/Perth/Dolphin (Norway) Concept selection underway…
Development opportunity Butch Butch discovery (Faroe 15%) Southern North Sea; 66m water depth Close to infrastructure: Ula and Gyda Excellent quality reservoir, light oil Centrica operator Development project planning work ongoing…
2014 Final Results Financial Highlights 2014 Results Revenue 129.2m (2013: 129.4m) EBITDAX 59.1m (2013: 80.1m) due to lower realised boe price of 71 boe (2013: 105) 38.5m pre-tax impairments of D&P assets and 131.7m exploration write…
Summary and outlook Another busy period Solid and proven business model delivering sustainable value growth, through drill-bit and transactions Exploration-led strategy continues to deliver material success, underpinned by strong cash…
Differentiators Excellent exploration track Experienced management record & clear strategy Financial strength Sustainable multi-well Excellent monetisation Strong Norway position drilling programme track record 16
Executive team Graham Stewart Helge Hammer Jonathan Cooper Chief Executive Officer Chief Operating Officer Chief Financial Officer Instrumental in founding Faroe Joined Faroe Petroleum in 2006 Joined Faroe Petroleum as Chief…
Appendices 19
Group Income Statement 2014 2013 000 000 Revenue 129,222 129,387 Cost of sales (102,815) (76,451) Asset Impairment (38,468) (2,072) Gross (loss)/profit (12,061) 50,864 Other income 4,583 - Net gain on disposal of property,…
Group Balance Sheet 2014 2013 000 000 Non-current assets Intangible assets 128,316 185,805 Property, plant and equipment: development & production 138,351 139,100 Other assets 827 806 Financial Assets 12 13 Deferred tax assets…
Group Cash Flow Statement Condensed Group Cash Flow Statement 2014 2013 for the year ended 31 December 2014 000 000 (Loss)/profit before tax (165,796) 10,024 Depreciation, depletion and amortisation 33,108 27,605 Exploration asset…
Producing Field Brage - Norwegian North Sea Faroe (14.3%), Wintershall (35.2% and operator), VNG (4.4%), Core Energy AS (12.3%), Talisman (33.8%) On stream in 1993 Fixed jacket integrated (PDQ) with 40 well slots, 17 active oil…
Producing Field Ringhorne East - Norwegian North Sea Faroe (7.8%), ExxonMobil (77.4% and operator), Statoil (14.8%) Excellent quality oil field located in Norwegian North Sea at 125m water depth Four horizontal production wells…
Producing Field Blane - UK Central North Sea Faroe (18%), Talisman (43% and operator), Roc Oil (12.5%), Nippon (14%), Dana (12.5%) Prolific Palaeocene Upper Forties sands reservoir, structural closure High quality 42 API oil Two…
Reserves and Contingent Resources Gas (bcf) Liquids (mmbbls) Total (mmboe) 2P Reserves Norway UK Group Norway UK Group Group 1 January 2014 32 35 66 12.5 3.6 16.1 27.2 Revisions 9 (3) 7 4.9 (0.2) 4.8 5.9 Acquisitions - 29 29 -…
Development opportunity Perth, Dolphin & Lowlander significant upside HOA enabling future joint development of Perth (Faroe 34.6%), Dolphin (34.6%) and Lowlander (100%) Lowlander, Dolphin and Perth estimated to contain 270 mmboe of…
Exploration/appraisal Bister near field exploration well in 2015 PL348, Statoil operator, Faroe 7.5% Building on Snilehorn success from late 2013, (Snilehorn gross recoverable resource range estimate of 57-101 mmboe) Bister prospect…
Exploration/appraisal Kvalross Frontier exploration well in 2015 PL611, Wintershall operator, Faroe 40% Awarded in May 2011 in the Norwegian 21st Licensing Round Located in the Barents Sea to the south of OMVs significant Wisting…
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