** Cavendish AM fund manager Paul Mumford goes against thegrain & buys shares in small E&P cos on the cheap in aftermathof savage sell-off in crude oil over last 6 mths
** Faroe Petroleum, Ithaca Energy & CircleOil all stocks he has bought in last few days
Chart: http://link.reuters.com/pet73w
** Says key attraction of Faroe, a major license holder inNorwegian part of the North Sea, is that the country's govtrefunds about 80 pct of exploration costs
** Co hedged oil at $90 barrel which is "not too bad" & itsexploration this yr is "quite soundly funded", he says
** He highlights that fellow North Sea oil focused coIthaca's Greater Stella Area project will double production whenit comes onstream - expected to produce 1st oil before end 2015
** He flags up fact that Middle East & North Africa-focusedCircle Oil has good production
** Mumford sees Faroe as safest investment of the three,followed by Ithaca; Circle has slight political risk
** Gloomy day for Europe's oil-related stocks which dominatethe loser boards across the region once again (RM: tricia.wright1.thomsonreuters.com@reuters.net)