Faroe Petroleum - Ready for Lift-off

PUBLISHED: 15 Jul 2015 @ 01:45 | Comments (0) | More info about Long Over Short

Faroe Petroleum (LSE:FPM) offers short term upside in the form of an exciting mix of exploration and appraisal wells offshore Norway and in the Barents Sea.

The Boomerang well is currently being drilled, after which attention will move onto the Shell (LSE:RDSB) operated Portrush prospect and then back to another Pil discovery well called Blink.

Focus will then turn to the Barents Sea where the Kvalross and ENI Operated Dazzler wells will be drilled targeting prospects near to recent discoveries. These will occur in 2016, a point to note is that those two wells and the previous three are all being drilled in Norwegian waters where there is a 78% tax rebate on exploration costs.

Faroe’s share price is up this year in reflection of the increasing cash pile (which is up £14m this year to £107m) and the growing production of over 11,000 boepd at an average operating cost of $22 per barrel. Behind the scenes its a well run upstream outfit and is in a very strong position to not just survive the low oil price environment but thrive.

A position was opened on the websites Trade Diary yesterday seen here and buying pressure has the shares up 51% since January 1^st at year highs of 91p.

With constant drilling expected until Q3 2016 Faroe offers multiple price catalysts that will send the share price higher with any successes.

A full report on Faroe’s upcoming wells can be read here and don’t forget to sign up for free subscription to Long Over Short here.

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