Faroe Petroleum’s (LON:FPM) results today demonstrate just how quickly an emerging oil producer can reap the rewards of its best laid plans.
Making its transition to producer from explorer this year, after it swapped an expensive development project for operating fields, oil output grew massively to 8,581 barrels a day from 1,263 barrels in the first half.
Profits more than doubled to £90.6 million from £40.1 million, leading to a six-fold increase in earnings which reached £62.8 million.
With this profitable foothold now in place Faroe is pushing ahead with busy multi-well drill campaign - though results so far have been mixed.
Of course with no revelations of ‘big bang’ well results or groundbreaking corporate deals – the usual fodder for AIM’s day traders – there was little action in the shares.
At the other end of the scale Petrel Resources (LON:PET) shot up on much more speculative developments, its shares gained over 20 per cent as management proclaimed a ‘new start’ in Iraq.
It has had a new team on the ground in Iraq in recent weeks and Petrel says it is now working the authorities to identify projects that the company can participate in the future.
Meanwhile in the commodities and futures markets the price of crude oil dropped off swiftly overnight.
A ‘dollar a minute’ fall was reportedly the consequence of an erroneous or ‘fat finger’ trade. Separate reports also pointed to automated computer-driven trading as another potential reason for the volatility.
This afternoon oil prices remain a little more subdued than in recent days.
In London Brent Crude futures were changing hands at $113.4 a barrel, while US light sweet crude was priced at $95.8.