Faroe Petroleum has cut its first-half 2007 losses in half to £600,000 from the same time last year on gas production in June from the Minke field.

Though cash on hand shrunk in the first six months by a quarter to £29.7 million, the company said it was sufficient for drilling in the Atlantic Margin, the North Sea and in Norway. The Bank of Scotland has 75-percent funded the Norway bit.

Funds are necessary, as an “exciting” appraisal well in the southern “Gas Basin” at Breagh is due in September, and management complained of rising rig costs. The West Alpha semi-submersible has been secured for drilling the Fogelberg prospect in Norway in the winter of 2008-2009, just as prospects are “derisked” elsewhere.

Faroe managers said they were getting ready for Norway’s Awards in Predefined Areas 2007 and involved in Minke-Grabe planning, while getting ready to farm-out wells in the Atlantic Margin.