Barents Sea licence award

13 June 2013

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

Faroe Petroleum awarded important new licence in Norwegian Barents Sea

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic Margin, Norway and the UK, is pleased to announce the 22nd Norwegian Licence Round award of a new licence PL716 in the Barents Sea.

The Dazzler prospect contained within PL716 (Faroe 20%) is located 90 kilometres to the north west of the recent Skrugard and Havis oil discoveries and lie in approximately 450 metres of water. The main prospect is positioned on the southern flank of the Stappen High adjacent to the Bjørnøya Basin and consists of a large horst structure, which is well defined by recently acquired 3D seismic and has significant volumetric potential.

The work programme consists of drilling of one firm well with a target depth of the shallower of: i) 50m into the Triassic Snadd formation, or ii) 3,500 metres. The licence which is contained within Blocks 7318/11 & 12 is operated by Eni Norway AS (40%) and the other partners are Bayerngas Norge AS (20%) and Petoro AS (20%).

Graham Stewart, Chief Executive of Faroe, commented:

"Faroe Petroleum is very pleased to have been awarded this prospective exploration licence in the Norwegian 22nd licensing round announced yesterday which further enhances our strategic position in the Barents Sea. We are also pleased to be working again with Eni as operator which has had such success in the Barents Sea.

"This licence delivers a further well to our high impact Norwegian drilling campaign, and we look forward to the commencement of the Snilehorn (Norwegian Sea), Novus (Norwegian Sea) and Butch wells (Norwegian North Sea) in the second half of 2013. "

Ends -

For further information please contact:

Jan-Tore Paulsen, Exploration Manager Norway of Faroe Petroleum and a Geophysicist (MSc. in Geophysics from University of Bergen), who has been involved in the energy industry 15 years, has read and approved the technical disclosure in this regulatory announcement.

Notes to Editors

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

The Company's licence portfolio provides considerable spread of risk and reward, encompassing some 60 licences. Faroe has a very active drilling programme ahead and it currently has interests in four principal producing oil and gas fields in the UK and Norway, including interests in the Blane oil field in the UK, and interests in the producing Njord, Brage and Ringhorne East fields in Norway, which collectively produced on average 7,200 boepd (economic production) in 2012.

Faroe announced in January 2013 a significant discovery in the Rodriguez prospect located on the Halten Terrace, in the Norwegian Sea. The discovery was made in the Lower Cretaceous.

Faroe Petroleum is quoted on the AIM Market of London Stock Exchange plc with offices in Aberdeen, Stavanger, London and Torshavn. The Company is well financed from a strong cash reserve, excellent cash flow and largely undrawn $250m borrowing base facility, with a fully funded drilling programme in 2013 and beyond. Faroe has highly experienced technical teams who are leaders in the areas of seismic and geological interpretation, reservoir engineering and field development, focused on creating exceptional value for its shareholders.