Oil and gas firm Faroe Petroleum reports reduced losses

Scottish-based Faroe Petroleum has reduced its losses, an upbeat trading statement has revealed.

Its pre-tax loss for the first half of this year was £3.8m, down from £6.1m in the first half of 2009.

The firm had a successful rights issue of £65m, raising cash to £80m, with access to another £72m credit.

In April, Faroe Petroleum reported a gas discovery under Norwegian waters, followed in July by an oil discovery in Norway's Maria field.

The Aberdeen-based company also reported plans for seven firm and seven expected wells, scheduled over the next two years - including eight in Norway and one in the UK North Sea.

Graham Stewart, Faroe Petroleum's chief executive, said: "We have made very good progress in the period, with two significant exploration successes in Norway.

"Our recent drilling successes clearly demonstrate delivery on the strategy we set out earlier this year when we raised over £65m net equity funds in a very well-supported rights issue.

"Faroe Petroleum has built an outstanding portfolio of assets, combining high potential value exploration and appraisal opportunities with a growing production base.

"The company is going through an important and exciting period of activity and growth, driven by an outstanding team confident of delivering further substantial value to our shareholders."