Faroe Petroleum plcAnnual General Meeting

28 June 2016

Faroe has developed a geographically focussed exploration-led and production-backed strategy which is delivering exceptional results

Outstanding, diversified full-cycle portfolio of assets High quality large exploration acreage position in Norway Ongoing fully-funded, multi-well, sustainable drilling programme Several significant discoveries maturing towards development Material, well balanced and tax efficient production – generating cash Strategically well positioned

Balance sheet strength Robust balance sheet, with strong cash position, low gearing and

significant debt facility Benefiting significantly from 78% tax refund incentive for Norwegian

exploration

Faroe’s world class sub-surface competence is at the heart of our success

Faroe is robust and well positioned for growth in a low commodity price environment

Faroe is well capitalised and on track to become a leading independent E&P player in the North Sea

Faroe overviewIntroduction

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Strong production performance and low operating costs Total 2015 average economic production1 10,530 boepd (2014: 9,106 boepd) Average operating cost reduced to $23 per boe (2014: $33 per boe) Acquisition of additional interests in Blane and Enoch oil fields in UK

Significant reserves growth 2P Reserves increased by 88% to 57.4 mmboe (2014: 30.6 mmboe) 2C Contingent Resources decreased to 98.3 mmboe (2014: 109.1 mmboe)

Exploration programme adding 2C & replenishing hopper Oil discovery of 13-31 mmboe (gross) on Boomerang well in September 2015 Skirne East (Shango) small gas discovery; Portrush, Bister & Kvalross (2016) dry Five APA licences won in Norway in January 2015 plus a further six in January

2016

Financially robust Year-end cash of £91.5m and net cash £68.5m Revenue of £113.0m (excluding hedging gains) EBITDAX of £60.4m Pre-tax E&A write offs £83.5m and pre-tax D&P impairments of £45.1m

1 Economic production in 2015 includes production from the recently acquired interest in the Blane field (12.5%) from 1 January 2015 (the effective date).Accounting production excludes production between the effective date and the date of completion on 5 November 2015. Accounting production in 2015 was 10,252 boepd (2014 6,579 boepd)2 Adjusted to exclude Kvalross prospective resource

Faroe well capitalised and on track to become leading independent E&P player in the North Sea 3

2015 Final Results Summary – issued 29 March 2016Strong production performance, lowered opex, significant reserves growth & strong net cash

Converting exploration success and transactions into value

Prospective un-risked resources

2P reserves

2C resources

98 mmboe*

30.6 mmboe*

>800mmboe2

* 31 December 2015

57.4 mmboe*

109 mmboe*

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2015 Final Results Summary – issued 29 March 2016Outlook

Faroe well capitalised and on track to become leading independent E&P player in the North Sea

Outlook – fully-funded well programme and positioned for growth Two remaining 2016 exploration wells (benefit from 78% tax rebate) – Brasse discovery (ongoing), Njord North Flank 2016 capex estimates:

E&A £50m pre-tax (£12m post-tax) D&P £20m

2016 production guidance of 7,000 - 9,000 boepd split 55% liquids and 45% gas

Well positioned to capitalise on market conditions to pursue value growth

Excellent track record in growing 2P reserves

Very active programme – fully funded with significant upside potential

E&A Drilling activityHigh quality, flexible exploration, appraisal and infill programme

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All exploration wells are in Norway – benefiting from 78% tax rebate incentive

Further attractive exploration well opportunities are being matured like Rungne, Frisbee and Yoshi

Faroe continues to build its portfolio of exploration licences organically

‒ 5 APA exploration licences won in Norway in January 2015 and a further 6 in January 2016

Economic robustness is a crucial element of pre-commitment screening work

committedexpected possible

Prospect EquityQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Brasse *** 50,0%

Brasse sidetrack ** 50,0%

Njord NF2 * 7,5%

Dazzler/Bone * 20,0%

Oshun 20,0%

Dobby 7.5%

Aerosmith/Iris 20,0%

Fogelberg appraisal 25,0%

Cassidy 15,0%South East Tor 85,0%*** drilled** ongoing

2016 2017 2018

The Brage area (Faroe 14.3% in producing Brage field)

Very prospective area

Significant infrastructure including Oseberg, Brage and oil and gas export pipelines

PL740 Brasse discovery

Faroe holds 50% and is operator, Point Resources AS 50%

Located approximately 13 kilometres south of Brage

The Brasse well (31/7-1) encountered a gross oil column of approx. 21 metres and a gross gas column of approx. 18 metres

Penetrated Jurassic reservoir analogous to the effective reservoir at the Brage producing oil field (Faroe 14.3%).

Transocean Arctic semi-sub on contract: excellent performance to date

low day rate and well cost subject to 78% rebate

Side track drilling under way to confirm both the reservoir distribution and hydrocarbon contacts

If proven to be commercial, Brasse could be developed as a tie-back to Brage or other nearby facilities

Exploration and appraisalBrasse discovery – side track drilling ongoing

6Excellent prospect benefiting from low rig rate with near term tie-back potential

Exploration and appraisalNjord North Flank exploration well – expected in Q3 2016

The Njord area

Highly prospective area

Contains the Njord field and Draugen field

Snilehorn (Faroe 7.5%), Pil (Faroe 25%), Bue (Faroe 25%) and Boomerang (Faroe 25%) are recent exploration successes

PL107C North Flank prospect (NF2)

Faroe 7.5%, Statoil operator (20%)

Material 3-way down faulted structural trap, with crest of structure in PL107

Expect to drill in Q3 2016

7Excellent prospect benefiting from low rig rate and potential to tie into Njord Future Project

Production and Development assetsBuilding production base and growing reserves

Diversified production base (50:50 Norway/UK and 50:50 oil/gas) with infill and near-field upside potential to boost production

Lowered opex and long life assets

2P Reserves almost doubled since last year from 30.6 to 57.4mmboe

Strong balanced production, well performing assets, low opex per boe

Brage(Faroe: 14.26%)

Oil field in Norwegian North Sea – Wintershall-operated Two successful infill wells in 2015 – new programme being planned

Butch(Faroe: 15%)

Development project in Norwegian North Sea – Centrica-operated FEED project ongoing - FDP submission planned for end of 2016

Njord/Hyme/ Snilehorn(Faroe: 7.5%)

Oil and gas field in the Norwegian Sea – Statoil-operated Production suspended in June - Njord Future project underway

Pil(Faroe: 25%)

Oil and gas field in the Norwegian Sea – VNG-operated Feasibility confirmed for both subsea satellite and stand alone solutions

Ringhorne East(Faroe: 7.8%)

Oilfield in Norwegian North Sea - Exxon-operated Low operating cost, stable production

Blane(Faroe: 30.5%)

Oilfield in Central Graben UK - Repsol-operated Low operating cost, stable production

Schooner & Ketch(Faroe: 60%)

Gas fields in the UK Southern Gas Basin – Faroe-operated Stable gas production – gas sold into the UK market

Total: 57.4 mmboe

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Brage

NjordAreaPil

RinghorneEast

ButchBlane

Schooner& Ketch

Faroe – investment in Southern Gas Basin productionSchooner and Ketch

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Faroe is 60% owner and Operator of the Schooner and Ketch gas fields

Faroe is doing things differently to extract more value from these assets We have invested in several initiatives to increase profitability, including:

logistics sharing with Eni, including larger helicopter with greater payload

modernising maintenance methods to increase profitability Recent work carried out on one of the Schooner wells resulting in

increased rates In addition further well potential is under consideration with scope to

significantly lengthen the productive and profitable lives of both fields

Continuing to modernise & improve operations to increase profitability

Butch (Norway) – development plannedExcellent value creation opportunity

Butch oil field (Faroe 15%), operated by Centrica

Southern North Sea, 66m water depth

Close to infrastructure - Ula and Gyda

Excellent quality reservoir, light oil

Development project – planning work ongoing

Project passed concept selection in H2 2015

Selected concept:

Subsea tie-back to Ula via Oselvar

Two production wells and one water injection well

2P Reserves of 42 mmboe (gross)*

Expected on stream in 2019 - plateau production of approx. 35,000 boepd gross (5,250 boepd net to Faroe)

Front End Engineering and Design project on track

Subsea and drilling costs major part of capex – to benefit from reduced market rates

FDP submission currently planned for end 2016

10Exciting material sub-sea oil field development will benefit from significantly lower capex* CPR Jan 2016 (Senergy)

Greater Njord Area Strategic position – material value potential in GNA

GNA has yet to be produced reserves in excess of 300mmboe

Njord/Hyme/Snilehorn over 200mmboe gross (Faroe over 15mmboe net)

Pil/Bue/Boomerang 80-200mmboe gross (Faroe 20-50mmboe net)

Njord Future Project: Njord, Hyme, Snilehorn

Njord facility to be refurbished and upgraded

‒ Production stopped June 2016

FDP scheduled for early 2017

First production targeted for 2020/21

Pil, Bue and Boomerang (Faroe 25%) – 2014 and 2015 Faroe discoveries

Reserve range from 80 to 200mmboe gross

Faroe 25% in area equates to 20 to 50mmboe net

Pil development maturing towards concept selection

‒ Njord and Draugen identified as possible export routes

‒ Competitive dynamic around export routes can be leveraged to achieve low cost development

Potential for significant further resource additions through follow-on exploration

Njord – Statoil operated Draugen – Shell operated

11Significant value creation opportunity with material reserves – benefits from reduced costs

* CPR Jan 2016 (Senergy)

2015 Final ResultsFinancial highlights and outlook

2015 Results Revenue (excluding hedging) £113.0m (2014: £128.8m) EBITDAX (incl. £9.3m realised hedging gains) £60.4m (2014: £59.1m) Realised boe price of $47 boe including realised hedging gains (2014: $71) £45.1m pre-tax impairments of D&P assets and £83.5m exploration write off Loss after tax £52.9m (2014: £55.0m) Material cost reductions achieved – across drilling, operations and G&A (net G&A charge in Income Statement 44% lower than in 2015 at £3.7m)

Production 2015 economic production¹ approximately 10,530 boepd 2016 production expected to be 7-9,000 boepd (approx. 55% liquids and 45% gas)

Liquidity Cash and net cash at 31 Dec 15 of £91.5m and £68.5m respectively (31 Dec 14: £92.6m cash and net cash £69.6m) $225m Reserve Based Lending facility (RBL) – approx. £23.0m drawn at 31 Dec 15 Exploration Financing Facility (EFF) of approx. £116m (NOK 1.5bn) 2015 hedging: predominantly puts at $90/bbl for 268kbbls of oil; and 52.6m therms (approx. 835 kboe) 50p/therm puts. Limited oil swaps at $67/bbl

Capex 2015 pre-tax exploration and appraisal programme of approx. £62m (£14.8m post-tax) 2016 pre-tax expected exploration and appraisal programme of approx. £50m (£12m post-tax) 2016 expected development and production capex approx. £20m (2015: £17m)

Tax efficiency Carried forward UK tax losses of £55.6m (31 Dec 15) – boosting cashflow from production Norway: utilisation of 78% exploration tax rebate; EFF funds 75% of net exploration expenditure

Hedging Hedging in place to underpin budget – 80% of 2016 gas production (post tax) at between 45-50p/therm Hedge instruments will continue to be taken out on an opportunistic basis

12Strong balance sheet, low gearing, good hedging, production cash flow

¹ Economic production in 2015 includes production from the recently acquired interest in Blane field (12.5%) from 1 January 2015 (the effective date). Accounting production excludes production between the effective date and date of completion on 5 November 2015. Accounting production in 2015 was 10,252 boepd (2014: 6,579 boepd)

Summary and outlookFinancially and operationally robust

Solid and proven business model delivering sustainable value growth, through drill-bit and transactions

Exploration-led strategy continues - underpinned by production and Norwegian tax rebate – recent Brasse discovery

Balanced and diversified portfolio - world-class technical team

Financially robust and operationally strong at low commodity prices

Robust balance sheet, prudent financial management

Production-generated cash flow – benefit from low unit opex

Forward programme is material yet relatively low cost and benefits from Norwegian State refund

Continuing high potential E&A programme in Norway on track, fully funded: Brasse ongoing and Njord North Flank to drill

Capex in 2016 est. £32m (post tax):

Progressing Butch and Pil towards development decisions

Progressing Njord Future Project

Planned growth

Strong balance sheet ensures we are positioned to pursue multiple routes to create value

Actively pursuing growth in 2P and value near term through potential acquisition/consolidation opportunities

Strength at low commodity prices, high upside, funded 2016 programme & growth opportunities 13

Differentiators

Excellent asset monetisation track record

Production field operator

Financial strength and prudenceExcellent exploration track record -

multi-well programmeExperienced management

& clear strategy

Strong Norway position

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Graham StewartChief Executive Officer

• Instrumental in founding Faroe Petroleum in 1998

• Over 25 years’ experience in oil and gas technical and commercial affairs

• Previously finance director and commercial director at Dana Petroleum 1997 to 2002

• Experience with Schlumberger, DNV Technica, Petroleum Science & Technology Institute

• Offshore Engineering degree (Heriot-Watt University) and MBA (University of Edinburgh )

Helge Hammer Chief Operating Officer

• Joined Faroe Petroleum in 2006

• Over 25 years’ technical & business experience, incl. Shell (Norway, Oman, Australia and Holland)

• Managing Director of wholly owned Norwegian subsidiary, Faroe Petroleum Norge AS

• Previously Asset Manager and Deputy Managing Director at Paladin Resources

• Economics degree (Institut Françaisdu Pétrole, Paris)

• Petroleum Engineering degree (NTH University of Trondheim)

Jonathan Cooper Chief Financial Officer

• Joined Faroe Petroleum as Chief Financial Officer in July 2013

• Former Finance Director of Gulf Keystone Petroleum and Sterling Energy and CFO of Lamprell plc

• Former Director of the Oil and Gas Corporate Finance Team of Dresdner Kleinwort Wasserstein

• Broad range of experience from mergers and acquisitions, public offerings and financing

• Chartered accountant by training having qualified with KPMG

• PhD Mechanical Engineering (University of Leeds)

Executive team

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Faroe successfully executing its strategy – balance sheet discipline ensures a strong growth platform

Faroe’s growth modelBuilding core value and scale

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Maintain significant portfolio of Prospective Resources Participate in Licence Rounds – excellent track record of awards Proactive approach to farm-ins/farm-outs

Grow 2C Contingent Resources High-graded, high-quality programme of E&A wells Optimum working interests and good success rate

Grow 2P Reserves Progress discoveries to FDP sanction Participate prudently in robust development projects Swap 2C contingent for 2P reserves where appropriate

Grow Profitable Production Exploit market opportunities through acquisitions & swaps Invest in our producing fields where appropriate

Prudent financial management Ensure balance sheet strength at all times

No. of shares in issue: 269,033,765

Market cap at 24.3.2016: £176.4m

Net cash: £68.5m

Enterprise value: £107.9m

EV/2P: $2.7/boe

EV/(2P+2C): $1.0/boe

EV/boepd: $19,200

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Shareholder information & key metrics

17.9%

11.0%

10.0%

8.7%3.8%3.6%

3.5%3.4%

3.2%

34.9%

Shareholder analysis | March 2016

Dana Petroleum BlackRock

Fidelity International Aviva Investors

Schroder Investment Management Invesco Perpetual

AXA Framlington Investment Managers Scottish and Southern Energy

NFU Mutual Other

High quality shareholder list, attractive metrics

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Disclaimer

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