Five-fold turnover increase for Aberdeen-based Faroe Petroleum

Oil and gas firm Faroe Petroleum has described 2011 as a "truly exceptional year of success".

The Aberdeen-based company increased its turnover more than five-fold to £80.2m.

It has announced a pre-tax profit of £14.3m against a £26m loss in 2010.

The group, which focuses on oil and gas exploration, primarily in the UK and the Norwegian North Sea, reported a dramatic boost to production, proven reserves and cash flow last year.

Faroe said a swap deal, which saw a 30% share in the Maria discovery exchanged with Norwegian company Petoro for shares in other fields already in production, helped boost profits.

A deal which gives Faroe an 18% interest in the Blane oil field in the North Sea was also completed in 2011.

Chief executive Graham Stewart said: "2011 has been a truly exceptional year of success for the company, with a dramatic boost to production, proven reserves and cash flow, together with continuing success delivered from our high quality exploration portfolio.

"The acquisition of 18% of Blane was completed in May 2011 and the ground-breaking deal to monetise our significant 2010 Maria discovery by exchanging it for high quality, long-life oil and gas production from four Norwegian fields was completed in December 2011.

"These transactions further demonstrate Faroe's ability to deliver solid value for shareholders both through the drill-bit and transactions."

He said the company was now looking forward to "an exciting period ahead".

He added: "The considerable increase in cash flow from our substantially enlarged production base, combined with cash balances and available but undrawn debt facilities ensures we are well funded going forward.

"Our portfolio of exploration licences ensures Faroe has a very exciting drilling programme ahead, including around five high impact exploration and appraisal wells per annum and a very active long term programme of production in-fill wells."