Investors have been snapping up shares in Faroe Petroleum (FPM) before the oil group's exciting five-well drill program kicks off in September. Faroe's share price has crept up by a sixth in the past few weeks with investors hoping this year's exploration program will prove more fruitful than last year's - when Faroe drilled six dud wells out of six.
The UK and Norway-focused explorer outlined its new line up of wells in an operational update this week: Snilehorn (in which Faroe holds a 7.5 per cent interest) spuds in September; Butch East (15 per cent) should spud in October; Pil (25 per cent) is expected in December; and Solberg (20 per cent) in January.
This good news was tempered by Faroe announcing that oil production in 2013 will likely be at the lower end of the previously guided range of 7,000-9,000 barrels of oil-equivalent per day. Faroe also farmed down its interests in the Solberg and Novus wells slightly, reducing exploration costs.
