Director/PDMR Shareholding

16 June 2015

Faroe Petroleum plc

("Faroe Petroleum" or the "Company")

Notification of Directors' interests

Faroe Petroleum Incentive Plan

On 15 June 2015, the Remuneration Committee of the Company approved an annual award under the Faroe Petroleum Incentive Plan ('FPIP") to the Executive Directors by way of grant of nil-cost options ("Options") over ordinary shares of 10p each in the Company ("Ordinary Shares") as detailed below:

FPIP Annual Awards

The actual number of Options which the recipients could receive under the FPIP ranges from zero to 150% subject to the achievement of the performance targets. For the purposes of disclosure and maintenance of certain statutory records, the number of Nil-Cost Options is taken to be 100% of the number of Nil-Cost Options awarded, as detailed above.

Performance will be measured at the end of a three year performance period against three equally weighted performance conditions, namely 1/3rd absolute Total Shareholder Return ("TSR"), 1/3rd relative TSR and 1/3rd a measurement of (in per share terms) reserves replacement and resources growth targets. Awards granted to the recipients will be required to be held for an additional two year holding period after the three year performance period before they vest.

This is the third of three annual awards made under the FPIP, as approved by shareholders at the 2013 Annual General Meeting, where the methodology for calculating both the award and the supporting performance metrics was predetermined but subject to the share price at the time of each award.

Total Holdings

Following these transactions the Executive Directors hold the following Ordinary Shares together with options over the same (including Matching Shares) exercisable at various prices up to 137 pence, as follows:

*On 13 April 2015 242,500 Nil-Cost options lapsed

** On 13 April 2015 207,324 Nil-Cost options lapsed

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