121 Oil and Gas Investment Conference, London Faroe Petroleum plc 29&30 October 2018 1 Slide 1
Introduction
Introduction to Faroe Petroleum Successful North Sea explorer with significant production growth underway Multiple fields across three hubs/areas High quality, diversified 2P reserves: 98 mmboe, 79% oil North Sea asset base Long…
2018 H1 operational highlights Full-cycle business delivering significant shareholder value Production H1 production 12,400 boepd (62% oil) Development Brasse concept studies awarded and underway, DG2 during 2019 Fogelberg Tambar…
Strongly positioned for growth
Repeatable business model Sustainably delivering reserve growth year-on-year Faroe discoveries since 2008* 75% 2P: 98 mmboe delivered organically Life cycle 2C: 113 mmboe 45 wells since 2008, E&A wells 35% commercial success…
Strong position + significant near term growth potential Opportunity to accelerate near-term upside* through drill bit +330-530% Five consecutive years of reserve growth Significant visibility on 2C resource evolution 620…
Transformational production growth well underway 35,000 boepd in near to medium term with significant upside* 100,000 Unrisked Production Profile 90,000 Firm Exploration: 80-150 mmboe 80,000 Agar/Plantain, Rungne, Brasse East,…
Production growth delivery on track Key near-and medium-term milestones 2018 2019 2020 WI% Op H1 H2 H1 H2 H1 H2 Tambar 45.0% AkerBP infills gas lift Brage 14.3% Wintershall Infills infills 2P Reserves Brasse 50.0% Faroe DG2 PDO…
Brasse flagship operated development project Robust, conventional subsea development project near infrastructure PL740 Brasse: Faroe 50% and operator Discovered in Jul-16, appraised in Jul-17 Very good reservoir properties, in…
Ula Area proving the hub approach Focus on valuable incremental volumes Ula (20%), Tambar (45%), Oda (15%), Blane UK (44.5%), Oselvar (55%) Successful Tambar revitalisation underway Two new Tambar infills brought on stream Ula Hub…
Iris-Hades key appraisal well Licence PL644: Faroe 20%, OMV 30% operator, Equinor 40%, Spirit 10% Prospects identified by Faroe: original award in APA 2009 Reapplied as an extension to in APA 2015 (previously Aerosmith) One of largest…
Agar Plantain exploration well UK Drilling underway Licence P1763: Faroe 25%, Azinor 25% operator, Cairn 50% UK exploration well applying key knowledge from Norwegian side Seismic anomaly followed from recent Frosk discovery in…
Rungne exploration well Norway Drilling underway Licence PL825: Faroe 40% and operator Faroe operated exploration well in a very prolific oil province Located near Brasse and immediately to the north of Oseberg Seismic AVO anomaly is…
Fully funded for transformational growth
Investing in our future Transformational year Largest investment programme ever Funded Capital Investment H2-18* Total 2018 capital spend of 225 million ( millions) A total of seven E&A wells drilling this year Norwegian tax synergies…
Capital structure and liquidity 460 million Maximising debt availability Reserves based lending facility 350 million facility (inc. 100 million accordion exercised October 2018) Maturity December 2025 Total Liquidity1 2 ( million)…
Summary
Delivering value for all shareholders Strongly positioned a well funded, sustainable business successful exploration track record 75% of 2P reserves delivered through drill-bit regular top quartile licence round performer Current…
Additional materials
Interim results 2018: financial highlights Strong financial performance millions H1-18 H1-17 Commentary Total Production (boepd) 12,402 14,800 Lower rates reflect temporary shut-ins of Tambar & Trym Q1-18 Adjusted Revenue 102.2 95.5…
ESG & diversity Committed to high environmental and governance standards Safety performance Staff & Board Gender Split No reported breaches of HSE by Faroe staff in 2017 Environment Committed to respect and preserve the natural…
Njord Area a major NCS (re)development project Aligned interest across entire area Njord, Hyme, Bauge & Fenja (all 7.5%) Significant resource base remaining in Njord Area Gross reserves of 345 mmboe and peak production of 130,000…
Cassidy exploration well - Norway Licence PL405: Faroe 15%, Spirit 40% (Op), Suncor 30%, AkerBP 15% Exploration well to be drilled following Oda development drilling Located north of Oda in similar salt dome setting Oil prospect: 50…
Pabow exploration well - Norway Licence PL870: Faroe 20%, Equinor 80% and operator Equinor operated exploration well east of Utsira High Testing new source rock and migration model needed to explain giant Troll and Johan Sverdrup…
Bergknapp (formerly Yoshi) exploration well - Norway Licence PL836 S: Faroe 30%, Wintershall operator Exploration well in the very prolific segard area, where Faroe has made the Maria, Fogelberg, Iris and Hades discoveries Located…
Strong and supportive institutional shareholder base Shareholder overview Major Shareholders Shareholder Geographic Split North Rest of America World Other 5.1% 1.4% Retail Institutional 12.2% 31.7% NFU 2.8% Fidelity 2.8%…
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…
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