Faroe's UK Gas Fields To Close

UK and Norway-listed independent Faroe Petroleum (FP) said in a mid-year update August 8 that its production is expected to fall after two gas fields cease production later this month.

FP’s net equity production was 12,402 barrels of oil equivalent per day in 1H2018 and is currently 15,200 boe/d. But the UK Schooner and Ketch gas fields are “scheduled to cease production at the end of August 2018”, it said, adding this had been previously announced; it operates both fields. Schooner has produced since October 1996 and Ketch since September 1999.

It added that its "full year guidance range is narrowed to 12,000 - 14,000 boe/d".

Offshore Norway, an exploration well is due to spud towards end-2018 on the Equinor-operated Pabow gas prospect (Faroe 20%) that has unrisked gross gas resources potential of 70mm boe, it said.

FP's pre-tax unaudited 1H2018 earnings (Ebitdax) were £76mn ($98mn), including a £28mn compensation payment from Norwegian fields Oselvar/Oda – but not including the gain resulting from the sale of a 17.5% Fenja stake to Canada's Suncor  of £26mn post-tax (announced February, presumably received after June). FP retains a 7.5% stake in the ongoing Fenja oil and gas development.

Fenja's 30% operator VNG Norge agreed to sell itself to UK-based Neptune Energy in June for an undisclosed price.   Neptune acquired key North Sea/Norway player Engie E&P six months ago for $4.7bn.