Considering Faroe Petroleum 's (FPM) disastrous 2012 drilling programme, which saw six out of six wells prove unsuccessful, the company's shares are holding up well, having slid just 15 per cent since this time last year.
Total average production in 2012 was approximately 7,200 barrels of oil equivalent per day (boepd), slightly lower than expected, but still strong. Production for 2013 could grow by as much as 25 per cent and is anticipated to be in the range of 7,000 to 9,000 boepd.
The cash flow from production should support what Faroe is all about - exploration. The company plans to participate in another active exploration campaign in 2013 comprising seven wells, six of which are located in Norway, thereby limiting the net cost of the programme because of the generous tax credits there. Broker finnCap estimates that nearly 800m barrels of gross prospective resources (117m barrels net) will be targeted.
