Company Presentation
November 2014
Disclaimer
These materials do not constitute or form any part of any offer or invitation to sell or issue or purchase or subscribe for any shares in Faroe
Petroleum plc (the “Company”) nor shall they or any part of them, or the fact of their distribution, form the basis of, or be relied on in connection
with, any contract with the Company relating to any securities. Any decision regarding any proposed acquisition of shares in the Company must
be made solely on the basis of public information on the Company. These materials are not intended to be distributed or passed on, directly or
indirectly, to any other persons. They are available to you solely for your information and may not be reproduced, forwarded to any other person
or published, in whole or in part, for any other purpose.
No reliance may be placed for any purpose whatsoever on the information contained in these materials or on their completeness. Any reliance
thereon could potentially expose you to a significant risk of losing all of the property invested by you or the incurring by you of additional liability.
No representation or warranty, express or implied, is given by the Company, its directors or employees, or their professional advisers as to the
accuracy, fairness, sufficiency or completeness of the information, opinions or beliefs contained in these materials. Save in the case of fraud, no
liability is accepted for any loss, cost or damage suffered or incurred as a result of the reliance on such information, opinions or beliefs.
Certain statements and graphs throughout these materials are “forward-looking statements” and represent the Company’s expectations or
beliefs concerning, among other things, future operating results and various components thereof, including financial condition, results of
operations, plans, objectives and estimates (including resource estimates), the Company’s anticipated future cash-flow and expenditure and the
Company’s future economic performance. These statements, which may contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect”
and words of similar meaning, reflect the directors’ beliefs and expectations and involve a number of risks and uncertainties as they relate to
events and depend on circumstances that will occur in the future. Forward-looking statements speak only as at the date of these materials and
no representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. The Company
expressly disclaims any obligation to update or revise any forward-looking statements in these materials, whether as a result of new information
or future events.
If you are considering buying shares in the Company, you should consult a person authorised by the Financial Conduct Authority who specialises
in advising on securities of companies such as Faroe Petroleum plc.
Faroe overview
 Faroe’s exploration-led and production-backed
strategy is delivering exceptional results
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Significant recent exploration successes in Norway:
Snilehorn and Pil
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Substantial potential being realised across portfolio
 Faroe has built an outstanding portfolio
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Largest acreage position in Norway of any London
quoted independent
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Balanced portfolio of assets
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Ongoing drilling programme targeting up to 5 wells
per annum, funded from cash flow
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Material, well balanced, tax efficient production
 Faroe’s world class sub-surface competence is at the
heart of its success
 Faroe is on track to become the preeminent E&P
player in Norway and the UK
Consistent and proven strategy
Exploration
 Target up to 5 material wells per year
 High impact – near-field (infrastructure-led) and frontier
 Leverage competitive edge
Win licences, drill wells and make discoveries
Monetisation
 Realise value of exploration discoveries
 Exploit M&A skills and experience
Swap, divest, develop (highly selective) & acquire assets
Cash
 Consolidate value, grow reserves, production and cash flow
 Prudent financial management
Generate strong production/cash flow – fund exploration programme
Since 2010: 4 x increase in production; 8 x increase in reserves;7 significant discoveries
Faroe’s growth model – building core value and scale
Prospective Resources
2C Resources
2P Reserves
Production
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Licence awards –
maintain success
Farm-ins
High-grade prospects
4 - 5 E&A wells per year
> 1 in 3 discovery rate
Maintain high working
interests
c.2.5 Bn boe

200 mmboe
FDP sanction
Highly selective
on developments
Acquisitions
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100 mmboe
20,000 boepd
100
20
75
15
50
10
50
25
5
0
0
3
Value-accretive
acquisitions & swaps
Invest in our
producing fields
200
150
2
100
1
0
2010 2014
2017
2010 2014
2017
0
2010 2014
2017
2010 2014
2017
Faroe on track to become preeminent E&P player in the wider North Sea
Exploration and appraisal
Significant Pil discovery – 2 follow-up wells in 2015
2014 discovery

Significant success - March 2014 - Faroe 25%

Gross columns ca 135m of oil and 91m of gas
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Well test flowed at a stable rate of 6,710 bopd
of 37° API oil, 56/64” choke
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Prolific reservoir - very high net:gross ratio
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Preliminary Pil and Bue estimated range of
gross recoverable resource of 80-200 mmboe*
2015 follow-up programme
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Draugen field
Two follow up wells to the Pil discovery
Njord field
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Transocean Arctic on contract

Targeting estimated unrisked prospective
resources of 93 - 490 mmboe (gross)
* Source: Operator / NPD
Pil discovery
Exploration/appraisal
Bister – near field exploration well in 2015
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PL348, Statoil operator, Faroe 7.5%
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Building on Snilehorn success from late 2013, (Snilehorn
gross recoverable resource range estimate of 57-101
mmboe)
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Bister prospect being planned for drilling in H1 2015

Evidence of a pressure barrier between Snilehorn and Hyme
contributes towards de-risking of the Bister prospect
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Seismic amplitude anomaly on Bister of similar character to
the anomalies on Snilehorn and Hyme
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Targeting estimated unrisked prospective
resources of 20 - 90 mmboe (gross)
Bister
Snilehorn
Hyme
Njord
Draugen
Exploration/appraisal
Shango: near-field exploration well in 2015
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PL627, Total operator, Faroe 20%
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Located on the northern part of prolific Utsira High
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Large undrilled Jurassic structure
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Shango prospect de-risked by Skirne production performance,
possible spill-over from Shango to Skirne
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If successful, will be target for fast-track tie-back development

Leif Eiriksson drilling rig on contract for drilling in H1 2015
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Targeting estimated unrisked prospective resources of 30 - 110
mmboe (gross)
HC Spillroute
Shango well
Exploration/appraisal
Kvalross – Frontier exploration well in 2015
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PL611, Wintershall operator, Faroe 40%
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Awarded in May 2011 in the Norwegian 21st Licensing
Round
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Located in the Barents Sea to the south of OMV’s
significant Wisting discovery
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The well is planned to test two targets:

the Lower Triassic Kvalross prospect with very
significant gas resources potential in Klappmyss
clinoform reservoirs within a megaclosure
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the Early Triassic Kvaltann prospect, a Snadd
Formation sandstone channel sitting directly above
the Kvalross Prospect with substantial oil potential
as proven in the Wisting shallow discovery to the
north
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Scheduled to be drilled with the Transocean Arctic drilling
rig in H2 2015
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Targeting estimated unrisked prospective resources of 50 580 mmboe (gross)
Kvalross/Kvaltann
well
Very significant opportunity, as Barents Sea is shaping up well
Expected drilling programme: current outlook
Prospect
Equity
Q1
Pil - first follow up well *
Shango *
Pil - second follow up well *
Bister *
Kvalross *
Dazzler *
Aileen
Milagro
2015
Q2
Q3
Q4
2016
Q1
Q2
25.0%
20.0%
25.0%
7.5%
40.0%
20.0%
50.0%
30.0%
* committed
Very active programme ahead – fully funded with significant upside potential
Move 2C Contingent Resources to 2P Reserves
Perth, Dolphin & Lowlander – significant upside
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HOA enabling future joint development of
Perth (Faroe 34.6%), Dolphin (34.6%) and
Lowlander (100%)
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Lowlander, Dolphin and Perth estimated to
contain 270 mmboe of oil place, - ready
appraised, 80 mmboe recoverable (100%).
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Previous barrier to development - no
existing facilities in area for production of
sour crude oil1
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Rig and contracting markets offer
opportunity for improved economics
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Work underway towards preparing the joint
FDP – scheduled for 2016.
1 Tartan
is able to handle only limited amount of low-H2S crude
Unlocking the assets has potential to generate exceptional return
Production
Schooner & Ketch acquisition in 2014
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Accretive deal grows production and 2P reserves
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Diversifies production portfolio
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Use of carried forward losses allows rapid payback of consideration – est. 2016
Provides tax shelter for future investments in the UK sector
Acquisition financed from existing RBL debt facility
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60% operated interests in two good quality producing gas fields developed by
Shell/Esso
Improved balance between oil and gas – approximately 50:50
Improves tax efficiency
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Adds 3,000 – 4,000 boepd net
Adds 5.9 million boe of 2P reserves at 1/1/14 (increase to 33.1 million boe overall)
Significant potential to further boost production, grow reserves and extend field life
Initial consideration of £23.1m paid at completion
Introduces financial gearing at a prudent level
Faroe becomes a production operator in a measured way
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Small increase in staff level
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Operating model based on “duty holder” principle to continue
Plans to increase reserves and production through investment
programme
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Phase 1: operational efficiencies, and
Phase 2: infill well drilling programme
Production
Njord and Hyme – back on line, performing well
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The project to strengthen Njord A facility deck structure completed on time
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Njord and Hyme brought back on-stream in July 2014 as planned
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Monitoring programme to assure Njord A hull integrity being implemented
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Operator’s plan is for a two year production period until mid-2016 while
Draugen
Snilehorn
Hyme
Njord
planning as a base case to take Njord A facility back to shore for hull repair
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Partnership focus on long-term value proposition from Greater Njord Area
which has seen considerable recent exploration success
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Overall remaining 2P Reserves and 2C Resources in excess of 170
mmboe (gross) in Njord, Hyme and Snilehorn
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Pil and Bue estimated 80-200 million boe
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Bister and the Pil follow-up wells offer potential for significant further
exploration success
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Faroe very well positioned across the area
Pil
Key financials
 Revenues
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H1 2014 turnover £53.5m (1H 2013: £89.0m) (targeting significant increase for full year)
Average 2014 economic production* guidance 7,000 – 10,000 boepd
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August economic production approx. 12kboepd net
Production split oil/gas (approximately 50:50)
 Liquidity
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Cash at 30 Jun-14 of £96.7m
Largely undrawn Reserve Based Lending facility (RBL) of $250m
Exploration Financing Facility (EFF) of approx £150m (NOK 1.5 bn) (plus NOK 500 million accordion)
 Capex outlook for 2014
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Planned exploration drilling programme in 2014 of approx. £110m = £35m post-tax (actual Faroe cost)
Development capex in 2014 is expected to be approx. £30m
 Tax efficiency
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UK tax losses of £75.0m (June 14); production provides tax shield for UK exploration
Norway: utilisation of 78% exploration tax rebate; EFF funds 75% of net exploration expenditure
* Economic production for 2014 includes Schooner and Ketch, where Faroe received the economic benefit from the associated production from 1 Jan-14 but can only account for it from the completion of
the acquisition on 9 Oct-14
Faroe well positioned in lower oil price environment
 Financially robust
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Uncommitted cash on the balance sheet
Significant head-room in existing debt facilities
Low gearing level and low cost of debt
 Production generating strong free cash-flow even at much lower oil price levels
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Opex of the producing fields in the range US$10-35/boe
Oil and gas hedges to Q4’15 – 55% of (post tax) oil hedged at $90/bbl, 35% of gas hedged at 50p/therm
Production balanced between oil and gas and between Norway and the UK
 No large capital commitments ahead
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Glenlivet divested in a timely manner - £10m consideration (in part deferred) PLUS £55m capex saved
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No significant development projects in 2015
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Capex in 2015 expected in range £10-30m for infill drilling in Brage and possibly one Blane infill well
 E&A programme remains solid with potential for significant value creation
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The 5 well E&A programme for 2015 on track
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The net cost of the E&A programme is expected to be approximately £30m – funded from cash flow
Faroe strongly positioned to weather lower oil prices - and grow
Summary and outlook
Solid and proven business model delivering sustainable value growth, principally through drill-bit
 Exploration-led strategy continues to deliver material success, underpinned by strong cash flow
 Balanced portfolio
 World-class technical team
Operationally strong
 Schooner/Ketch acquisition recently completed, expected to add 3–4,000 boe/d net Faroe in 2014
 Njord/Hyme back on stream in July 2014, currently producing well (5,000+ boe/d net)
 Economic production guidance for 2014 remains at 7–10,000 boe/d*
Forward programme is material yet relatively low cost and subject to State refund
 5 well exploration programme in Norway for 2015 remains intact
 Post tax rebate net cost of 2015 drilling campaign expected to be approximately £30m
 Exploration, development and production capital expenditure for 2015 likely to be in line with 2014
 Constantly monitoring UK/Norwegian assets markets for potential acquisition opportunities
Planned growth in fundamentals is on track
 Progressing 2C to 2P transitions positively
 Actively focused on growth through asset swaps, trading opportunities etc
* Economic production for 2014 includes Schooner and Ketch, where Faroe received the economic benefit from the associated production from 1 Jan-14 but can only account
for it from the completion of the acquisition on 9 Oct-14
Strong platform, exciting, high impact 2015 programme, growth planned
Differentiators
Excellent exploration
track record
Experienced management
& clear strategy
Financial strength
Sustainable multi-well
drilling programme
Excellent monetisation
track record
Strong Norway
position
Executive team
Graham Stewart – Chief Executive Officer
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Instrumental in founding Faroe Petroleum in 1998
Over 25 years’ experience in oil and gas technical and commercial affairs
Previously finance director and commercial director at Dana Petroleum from 1997 to 2002
Experience with Schlumberger, DNV Technica, Petroleum Science & Technology Institute
Offshore Engineering degree (Heriot-Watt University) and MBA (University of Edinburgh )
Helge Hammer – Chief Operating Officer
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Joined Faroe Petroleum in 2006
Over 25 years’ technical & business experience, incl. Shell (Norway, Oman, Australia and Holland)
Managing Director of wholly owned Norwegian subsidiary, Faroe Petroleum Norge AS
Previously Asset Manager and Deputy Managing Director at Paladin Resources
Economics degree (Institut Français du Pétrole, Paris)
Petroleum Engineering degree (NTH University of Trondheim)
Jonathan Cooper – Chief Financial Officer
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Joined Faroe Petroleum as Chief Financial Officer in July 2013
Former Finance Director of Gulf Keystone Petroleum and Sterling Energy and CFO of Lamprell plc
Former Director of the Oil and Gas Corporate Finance Team of Dresdner Kleinwort Wasserstein
Broad range of experience from mergers and acquisitions, public offerings and financing
Chartered accountant by training having qualified with KPMG
PhD Mechanical Engineering (University of Leeds)