Holding(s) in Company

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached: 

Faroe Petroleum plc

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights

X

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to the notification obligation: 

Mark H. Rachesky, see section 9.

4. Full name of shareholder(s)  (if different from 3.):

Goldman Sachs Securities (Nominees) Limited; and

Citi Smith Barney

5. Date of the transaction and date on which the threshold is crossed or reached: 

20 May 2009 

Note: A number of further disposals of voting rights took place on 21 May 2009 and these have been reflected in the notified details in sections 8 and 9 of this form.

6. Date on which issuer notified:

21 May 2009

7. Threshold(s) that is/are crossed or reached:

3%

8. Notified details:

A: Voting rights attached to shares 

Class/type of shares

if possible using the ISIN CODE

Situation previous to the triggering transaction

Resulting situation after the triggering transaction

Number of Shares

Number of Voting Rights

Number of shares

Number of voting rights

% of voting rights 

Direct

Direct 

Indirect 

Direct

Indirect

Ordinary shares of 10 pence each

3,163,220

3,163,220 shares

3,111,328

0

3,111,328 shares

0

2.97%

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financial instrument

Expiration date 

Exercise/  Conversion Period 

Number of voting rights that may be acquired if the instrument is exercised/ converted.

% of voting rights

N/A

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments 

Resulting situation after the triggering transaction

Type of financial instrument

Exercise price

Expiration date 

Exercise/ Conversion period 

Number of voting rights instrument refers to

% of voting rights

N/A

Nominal

Delta

Total (A+B+C)

Number of voting rights

Percentage of voting rights

3,111,328 shares

2.97%

9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable: 

Mark H. Rachesky indirectly controls 2.97% of the voting rights in Faroe Petroleum plc (previously 3.02% prior to the triggering transaction on 20 May 2009), comprising 3,111,328 ordinary shares, on the basis set forth below:

675,122 ordinary shares (0.64%) are beneficially owned by MHR Capital Partners Master Account LP. These voting rights are indirectly under the control of Mark H. Rachesky, who, as managing member, controls MHR Advisors LLC which in turn, as general partner, controls MHR Capital Partners Master Account LP. The ordinary shares are registered in the name of Citi Smith Barney.

90,173 ordinary shares (0.09%) are beneficially owned by MHR Capital Partners (100) LP. These voting rights are indirectly under the control of Mark H. Rachesky, who, as managing member, controls MHR Advisors LLC which in turn, as general partner, controls MHR Capital Partners (100) LP. The ordinary shares are registered in the name of Goldman Sachs Securities (Nominees) Limited.

MHR Advisors LLC is therefore interested in 765,295 ordinary shares in Faroe Petroleum plc, which amounts to 0.73%.

2,120,449 ordinary shares (2.02%) are beneficially owned by MHR Institutional Partners LP. These voting rights are indirectly under the control of Mark H. Rachesky who, as managing member, controls MHR Institutional Advisors LLC which in turn, as general partner controls MHR Institutional Partners LP. The ordinary shares are registered in the name of Goldman Sachs Securities (Nominees) Limited.

225,584 ordinary shares (0.22%) are beneficially owned by MHRM LP. These voting rights are indirectly under the control of Mark H. Rachesky who, as managing member, controls MHR Institutional Advisors LLC which in turn, as general partner controls MHRM LP. The ordinary shares are registered in the name of Goldman Sachs Securities (Nominees) Limited.

MHR Institutional Advisors LLC is therefore interested in 2,346,033 ordinary shares in Faroe Petroleum plc, which amounts to 2.24%.

Each of MHR Capital Partners Master Account LP, MHR Capital Partners (100) LP, MHR Institutional Partners LP and MHRM LP has an investment management agreement with MHR Fund Management LLC, pursuant to which MHR Fund Management LLC may exercise the voting rights which are held by each of those parties on their behalves. This interest amounts to 2.97% of the voting rights in Faroe Petroleum plc.

Proxy Voting:

10. Name of the proxy holder:

N/A

11. Number of voting rights proxy holder will cease to hold:

N/A

12. Date on which proxy holder will cease to hold voting rights:

N/A

13. Additional information:

14. Contact name:

Hal Goldstein

15. Contact telephone number:

+1 212 262 0005