Faroe Places 30 Million New Ordinary Shares

Faroe Petroleum, the independent oil and gas company focusing principally on exploration in the Atlantic Margin, the North Sea and Norway, is pleased to announce that the resolutions proposed at the Company's EGM held earlier today relating to the placing of new ordinary shares were duly passed by shareholders.

A total of 30,612,245 new ordinary shares have been placed with institutional and other investors on behalf of the Company by Panmure Gordon & Co and Tristone Capital Limited at a price of 147p per share, which represents a discount of 4.76 per cent. to the closing price at the close of business on the day before the announcement of the placing.

Total funds raised for the Company from the placing are pounds 45.0 million before expenses.

Dealings in the new ordinary shares are expected to commence at 08.00 on 28 December 2007. Following admission of the new ordinary shares to trading on the AIM Market of the London Stock Exchange plc, the Company will have a total of 104,745,161 ordinary shares in issue.