Results of Open Offer

9 August 2016

Faroe Petroleum plc

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

Results of Open Offer

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal, development and production opportunities in Norway and the UK, announced on 21 July 2016 the proposal to issue 5,958,896 Open Offer Shares at an issue price of 70 pence per Ordinary Share, subject to Shareholder approval at the General Meeting.

Result of Open Offer

The Company is pleased to announce the results of the fully underwritten Open Offer which closed for acceptances at 11.00 am on 5 August 2016.

Valid acceptances have been received in respect of 814,933 Open Offer Shares, representing a percentage take up of approximately 13.7 per cent. of the Open Offer Shares. Qualifying Shareholders who have validly applied for Open Offer Shares will receive their full Open Offer Entitlement and those that made an application under the Excess Application Facility will receive 100 per cent of Excess Shares applied for. The balance of 5,143,963 Open Offer Shares have been allocated pursuant to the Underwriting Agreement and the Underwriters have procured existing institutional shareholders to subscribe for all un-allocated shares.

The Open Offer remains conditional upon, inter alia, the approval by Shareholders of Resolutions 1 and 2, which will be sought at the General Meeting to be held at the offices of FTI Consulting, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD at 11:00 am on 9 August 2016 and Admission. In the event that Resolutions 1 and 2 are duly passed, the gross proceeds of the Open Offer are expected to be £4,171,227.

All defined terms in this announcement shall have the meanings ascribed to them in the Circular published by the Company on 21 July 2016.

Graham Stewart, Chief Executive of Faroe, commented:

"I'd like to take this opportunity to thank private and institutional shareholders for their ongoing support. The result of this Open Offer, combined with our recently announced £62 million over-subscribed Placing, significantly enhances our balance sheet and gives us the financial flexibility to take advantage of further value accretive opportunities and to continue to execute our proven growth strategy."

Further information:

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.