FAROE Petroleum said it has a busy period ahead with the drill bit after achieving production in line with expectations in the year to May.

The Aberdeen-based company will start work in the second half of 2013 on a drilling programme involving six wells in Norwegian waters which it believes could deliver significant finds.

"We look forward to one of our most exciting periods ahead with a large number of high-impact exploration and appraisal wells planned, and the potential to generate considerable shareholder value," said chief executive Graham Stewart.

The results of the campaign will be studied with interest following recent exploration setbacks for Aim-listed Faroe Petroleum.

In April a well on the Darwin prospect in the Barents Sea operated by Repsol was found to be dry.

Results from an exploration well drilled by BP at the controversial North Uist prospect west of Shetland, in which Faroe has a stake, put its commercial exploitation in doubt.

However, Mr Stewart said Faroe is in a strong position. The company has amassed stakes in a range of producing assets from which it generates plenty of cash.

In an update on trading, Faroe said its production averaged approximately 8100 barrels oil equivalent daily in the year to May 31.

Mr Stewart said the production continues to generate significant cash flow, funding the company's exploration programme.

He added: "This, together with our existing cash balances, considerable UK tax loss carried forward position and a substantially undrawn debt facility, underpins the strength of the business."

Faroe said all resolutions at yesterday's general meeting were passed but declined to give details.