Edited Press Release
LONDON -(Dow Jones)- Faroe Petroleum, the independent oil and gas company focusing on exploration, production, appraisal and undeveloped field opportunities in the Atlantic Margin, North Sea and Norway, said Thursday that it has entered into a farm-down agreement with Spring Energy for a 15% share in Norwegian licences PL405 and PL405B.
Faroe Petroleum will retain 15% equity in both licences, it said.
Spring Energy has acquired a 15% share in PL405 and PL405B in exchange for carrying (i.e. paying a share) of Faroe's costs associated with the first exploration well drilled on these licenses.
The transaction is contingent upon joint venture partner consent being granted (Centrica Resources Norge AS (operator) and Petro-Canada Norge AS), approval from Norwegian authorities and the existing licencees committing to drill a well.