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North Sea explorer coping with low price

‘Robust’ Faroe well-placed to seize on opportunities in oil market

Graham StewartNorth Sea oil explorer Faroe Petroleum has shrugged off the low price of crude and says it is well placed to buy other assets that become available.

The Aberdeen-based company said its strong cash position from producing wells is helping to protect it from the slump in the oil price and sees 2015 as another year of growth.

Faroe has an active drilling programme in 2015 with four wells planned – all to be drilled in its core areas in Norway.

In an operational update the company said 2014 had been a year of “excellent progress” with production coming in at the upper end of expectations and guidance.

Chief executive Graham Stewart (pictured)  said the company was in good shape to face “challenging market conditions,” he said.

“Faroe is well placed to consider capitalising on potentially attractive asset opportunities which may become available in the period ahead.”

He added:  “Our Norwegian position is now one of the most significant of any UK independent E&P company and the company is set for 2015 to be another year of growth.”

Despite low oil prices he said the company is “particularly robust” because of its significant cash position and substantially undrawn debt facilities.

It also benefits from a sustained cash flow from Faroe’s balanced oil and gas production and proceeds from the sale of its interest in Glenlivet. The absence of any substantial development capital commitments in 2015 will be another means of easing pressure on the company.

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