Completion of Kalvklumpen exploration well

13 February 2012

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

Completion of Kalvklumpen exploration well, Norway

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 drilling has reached target depth on the Kalvklumpen prospect (Faroe 20%), located in the Norwegian North Sea area of Norway.

The 25/6-4 S Kalvklumpen well spudded on 10 January 2012 and reached total depth of 2,738m within the Dunlin Formation. The well targeted sandstones of the Palaeocene Hermod Formation and the Jurassic Brent Group and, whilst excellent reservoirs were confirmed in both targets, no hydrocarbons were encountered. The Company has gathered considerable new data which will be used to de-risk other prospects in this prospective area where the Company owns several licences including the PL627 Shango, PL414B Oksen and PL507 Tetrao/Knorke licences.

The drilling operation was undertaken by Det Norske Oljeselskap as operator (40% participating interest), using the Songa Delta drilling rig, the other partners being Norwegian Energy Company ASA and Bayerngas Norge AS. The well will now be plugged and abandoned

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

"This is our first exploration well in this northern part of the Utsira High area, which has seen recent exploration success in the Atla discovery, located close to Faroe Petroleum's acreage. Whilst the results for the Kavlklumpen well are disappointing, the extensive data acquired will be now be applied to evaluate and de-risk further prospects within this and the adjacent licences held by the Company in this prospective area".

"The Kalvklumpen well is one of a continuing multi-well exploration drilling programme which Faroe is conducting in 2012, including the high impact North Uist (UK, west of Shetlands), Clapton (Norway), Cooper (Norway) and Rodriguez (Norway) wells. Meanwhile, operations on the T-Rex exploration well (Norway) located in the Norwegian Sea continue. We look forward to providing further updates on progress in the near future."

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 for 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 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, 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.