Faroe strengthens exploration options

Offshore staff

ABERDEEN, UK --Faroe Petroleum has secured a revolving credit facility with the Bank of Scotland to finance the first phase of its exploration and appraisal program offshore Norway.

In 2005, the Norwegian tax authorities introduced tax incentives, allowing companies such as Faroe to recover 78% of their exploration and appraisal expenditure during the following tax year. Under the terms of the revolving $19.87 million credit facility, the Bank of Scotland will carry 75% of all Faroe's E&A spending, thereby allowing the company to release more capital for Norwegian investment.

6/4/2007