AGM Statement

24 May 2012

Faroe Petroleum plc

("Faroe Petroleum", "Faroe", the "Company")

AGM Statement

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, announces that at its AGM to be held at 11am today, the Chairman, John Bentley will make the following statement:

"2011 was a transformational year for the Company, in which we added significant production, increased reserves over and above expectations and continued with our focus on high impact exploration, delivering some considerable successes with the drill bit. Through the acquisition of 18% of the Blane field 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 with Petoro; we have significantly increased the value of the business both from an operational and shareholder perspective.

"Since the year end we have continued with our exploration drilling programme and at the date of this announcement we are drilling three wells; North Uist in the West of Shetlands (Faroe 6.5%) and the Cooper well in the Norwegian Sea (Faroe 30%) and this morning announced the commencement of the Faroe-operated Clapton exploration well in the Norwegian North Sea (Faroe 40% and operator).

"Since the publication of the Notice of Annual General Meeting in April 2012, the Company has been in further dialogue with its larger shareholders. Following those discussions, the Company intends to make a number of changes to the proposed Faroe Petroleum Exceptional Performance Incentive Plan ("EPIP") and consequently Resolution 7 has been withdrawn.

"A further announcement will be made in due course as to the conclusion of these discussions and the amendments to the Faroe Petroleum EPIP."

- Ends-

For further information please contact:

Notes to Editors

The Company has, through successive licence applications and acquisitions, built a substantial portfolio of exploration, appraisal, development and production assets across the Atlantic Margin, the UK and Norwegian North Sea and the Norwegian Sea. Faroe has extensive experience working with major oil companies and its joint venture partners include BP, Chevron, DONG, ENI, E.ON Ruhrgas, GDF, OMV, RWE Dea, Statoil and Wintershall.

The Company's licence portfolio provides considerable spread of risk and reward, encompassing over 40 licences located in the West of Shetlands, offshore the Faroe Islands, the UK North Sea and Norway. In addition Faroe now has interests in 10 producing oil and gas fields in the UK and Norway, including the 2011 acquisitions of an interest in the Blane oil field in the UK and interests in the Brage, Hyme, Njord, Ringhorne East and Jotun fields in Norway.

Faroe Petroleum plc is quoted on the AIM Market of London Stock Exchange plc with offices in Aberdeen, London, Stavanger and Torshavn. The Company is well financed with a fully funded drilling programme extending into 2013 and has a highly experienced technical team at the leading edge of seismic and geological interpretation, reservoir engineering and field development, focused on creating exceptional value for its shareholders.