Faroe Petroleum Corporate Presentation June 2017 1 Slide 1
Faroes 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…
Faroe Petroleum overview Building the leading pan-North Sea independent E&P company A high quality, diversified North Sea asset base Total average production1 2016 17,395 boepd Hub-focused strategy to unlock synergies (2015:…
Strategic summary Positioned for organic & inorganic growth Strategically well Growth Financial flexibility positioned focused Diversified pan North Robust Strong growth Sea portfolio balance sheet from existing portfolio…
Track record of delivery Combining full cycle projects with M&A to create significant value Year end 2016 2P Reserves 2016 Average Production 81 17,395 mmboe boepd increase increase between 57.4 between 2012-2016 2012-2016…
Delivering material organic growth in production & cashflow Visible growth route to over 50,000 boepd over coming 5 years 60 30 50 25 Fogelberg (33%) 40 20 Pil (25%) Production boe/d 30 15 Brasse (50%) 20 Njord…
Nimble value creator - focused on the spokes and the hubs Focused strategy delivering value through synergistic approach hub strategy spoke focus delivers brings enhanced technical insight Compressed timelines multiple synergies…
Transformational 2016 acquisition in Norway Significant value creation + rapid payback July 2016: Announced deal to acquire 20 mmboe (2P reserves) from DONG for 70.2m December 2016: Acquisition completes with 27m payment, reflecting…
Exploration drive benefiting from much lower costs Tax-efficient exploration offers material value uplift Prospect Equity 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Brasse appraisal * 50% Brasse appraisal II *** 50% Goanna ** 30% Fogelberg…
Asset summary
Core hub areas Attractive projects with excellent upside Focus on value growth to realise synergies Greater NJORD hub area Njord Future Project (including new Bauge) on track for 2020 Pil & Bue FEED underway FDP expected late…
Production data 2016 and YTD 2017 Steady field performance Pil (25% W.I.) Production (boepd) 2016 May17 YTD Bl a ne 879 880 Schooner & Ketch 2 431 2 320 Njord & Hyme 921 - Ri nghorne Ea s t 711 610 Bra ge 2 197 1 240 Ul a 1…
Brage hub area: BRAGE Incremental project to deliver 2018 production growth Brage: (Faroe 14.3%) Overview Large STOOIP (1,000 mmbbls) Net 2P Reserves at 5.0 mmboe at 1 Jan 2017 Wintershall 35.2% and operator MAP Opex reductions…
Brage hub area: BRASSE Robust, simple subsea development project with excellent address Brasse: (Faroe 50% and operator) PL740 Brasse oil and gas discovery July 2016 similar to Brage Preliminary estimates of 43-80 mmboe recoverable…
Brage hub area: BRASSE Attractive projects with excellent upside Brasse: (Faroe 50% and operator) Troll East Troll East 31/7-1 31/7-1 A Brasse Extension: New acreage Jan-17 3D map showing Top Sognefjord Slide 16
Ula hub area: ULA Significant upside from further infill drilling and WAG reinjection scheme Ula: (Faroe 20%) Overview AkerBP 55% and operator Net 2P Reserves at 6.5 mmboe at 1 January 2017 Field development Net 2P Reserves at 6.5…
Ula hub area: TAMBAR Gas lift and new infill wells Tambar: (Faroe 45%) Overview AkerBP 55% and operator Net 2P Reserves 9.8 mmboe at 1 January 2017 Installing artificial lift Retrofit gas lift system (straddle) in existing wells…
1 Ula hub area: ODA Simple, high-return oil development via Ula hub infrastructure Oda: (Faroe 15%) High value project Centrica 40% and operator, AkerBP 15% and Suncor 30% 66m water depth - excellent quality reservoir, light oil…
Njord hub area: NJORD + HYME + BAUGE + PIL + BUE Attractive projects with excellent upside Njord: (Faroe 7.5%) + Pil & Bue: (Faroe 25%) Njord Future Project FDP approval expected shortly In dry dock for hull reinforcements and…
Njord hub area: SIGNIFICANT RESOURCE BASE Material 2P reserves, future production and significant prospect inventory Faroe has material position in prolific Halten Terrace area Gross reserves on Faroe licences estimated to be more than…
Finances
Financial summary highlights and outlook Strong balance sheet, undrawn RBL, good hedging, production cash flow Healthy cash o 114m at 19/6/17 (unaudited) balance o 78% tax rebate for Norwegian o mainly PUTs E&A o 87% 2017 gas…
2017 guidance Unchanged from 2016 results presentation (March 2017) Guidance item FY 2017 Actual to 31/5/2017 Comments (unaudited) Production 13,000 15,000 boepd 15,100 boepd Trym production not constrained as anticipated D&P capex…
Summary Diversified portfolio, high upside, funded programme - material value growth Solid and proven pan North Sea model with world class team delivering sustainable value growth Greatest exposure to Norway of all London quoted E&Ps…
Share price Slide 26
Faroe Petroleums shares Shareholder structure Aviva: 7% Other Number of Average traded Blackrock: 8% institutional shares in issue volume per day in 2016 45% JP Morgan: 8% Fidelity: 9% 366.5m 1.3m Retail: 8% Delek: 15%…
Appendices
Group Income Statement 000 2016 2015 000 000 Revenue 94,779 112,980 Cost of sales (96,666) (99,838) Asset Impairment (2,823) (45,108) Gross loss (4,710) (31,966) Other (expenses) / income (8,412) 13,867 Exploration…
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