Market Reaction: Positive. Production is ahead of our expectations (10,154 boe/d in 1h15) as well as net cash (FCCe: £22 mm), reflecting strong cash flow and probably capex timing. The Portrush well is estimated to target 70-90 mmbbl prospective resources at a gross cost of £23 mm (reflecting a 50% reduction in cost compared to pre crisis levels). On 25% chance of success, this would add 4p to our RENAV. This is also a strong vote of confidence from Shell with regards to the area.
24 Jun 2015
STRONG OPERATING UPDATE
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STRONG OPERATING UPDATE
Faroe Petroleum (FPM:LON) | 0 0 (-0.4%) | Mkt Cap: 371.0m
- Published:
24 Jun 2015 -
Author:
Stephane Foucaud -
Pages:
2
Market Reaction: Positive. Production is ahead of our expectations (10,154 boe/d in 1h15) as well as net cash (FCCe: £22 mm), reflecting strong cash flow and probably capex timing. The Portrush well is estimated to target 70-90 mmbbl prospective resources at a gross cost of £23 mm (reflecting a 50% reduction in cost compared to pre crisis levels). On 25% chance of success, this would add 4p to our RENAV. This is also a strong vote of confidence from Shell with regards to the area.