TIDMFPM
19 August 2009
Faroe Petroleum plc ("Faroe", the "Company")
Two additional Norwegian firm wells
Faroe Petroleum plc, the independent oil and gas company focusing
principally on exploration, appraisal and undeveloped field
opportunities in the Atlantic margin, the North Sea and Norway, is
pleased to announce that on 16th August it entered into the second
phase of the exploration work programme in two Norwegian licences and
has subsequently committed to drill two wells: T-Rex (Faroe 30%) and
Butch (Faroe 15%).
The T-Rex well will appraise an existing discovery in the Lower
Cretaceous zone located between the Smørbukk and Smørbukk Sør fields
in the Norwegian Sea. Hydrocarbons have already been proved in the
prospect, which has significant volumetric upside. The T-Rex
prospect is in PL431 and was awarded to Faroe Petroleum in the
Norwegian APA (Awards in Predefined Areas) 2006 Licensing Round.
In connection with the drilling decision in PL431, Mærsk Oil Norway
has entered the licence as its new operator and has taken on a 70%
licence interest. Faroe holds the remaining 30% licence interest.
The transaction is subject to approval by the Norwegian Authorities.
The Butch well in PL405 and PL405B will drill a prospect located on
the flank of an untested salt diapir, located on the margins of the
prolific Central Graben. This attractive prospect has many analogues
in the North Sea and is located approximately 15 kilometres east of
the Ula and Gyda Jurassic oil fields.
Faroe previously announced that it has farmed out 15% of PL405 and
PL405B to Spring Energy in exchange for carrying part of Faroe's
exploration well costs. The transaction is subject to approval by
the Norwegian Authorities. The other partners are Centrica (40% and
operator) and Petro-Canada (30%).
Graham Stewart, Chief Executive of Faroe Petroleum, commented:
"I am very pleased with the progress we are making in our Norwegian
business. In line with our strategy of partnering with major oil
companies, we have matured two additional prospects from the licence
application stage to making firm drilling decisions. T-Rex and Butch
are both exciting prospects, and add further to the already
considerable potential in our business.
"With the two additional Norwegian wells, Faroe's programme of firm
wells increases from seven to nine: four in the UK West of Shetland,
one in the Faroe Islands and now four in Norway. All Norway
exploration costs benefit from a 78% rebate from the State, and
accordingly the programme remains funded from existing sources. We
will commence shortly with the drilling of two high impact wells in
the West of Shetland area, Glenlivet and Tornado. Both wells are
expected to commence soon with further announcements to be made in
due course."
- Ends -
Enquiries
Faroe Petroleum plc
Graham Stewart
Tel: +44 1224 650 920
Panmure Gordon
Katherine Roe/Ashton Clanfield
Tel: +44 20 7459 3600
Financial Dynamics
Billy Clegg/Edward Westropp
Tel: +44 20 7831 3113
Andrew Roberts, who is a Geophysicist (BSc. Joint Honours in Physics
and Chemistry from Manchester University), Exploration Manager of
Faroe Petroleum Norge AS and who has been involved in the energy
industry for more than 25 years, has read and approved the technical
disclosure in this regulatory announcement.
Notes to Editors
The Company is actively building a balanced portfolio of operated and
non-operated exploration and appraisal properties, with significant
stakes and an active work programme. Faroe Petroleum has through
successive licence applications and acquisitions built a substantial
portfolio of exploration, appraisal and development assets across the
Atlantic Margin, the UK and Norwegian North Sea and the Norwegian
Sea. The licence portfolio provides considerable spread of risk and
reward, encompassing nearly 50 licences with eight licences West of
Shetlands, six licences offshore the Faroe Islands, two licences in
the Moray Firth area of the UK Central North Sea, nine licences in
the Southern gas basin and 21 licences in the Norwegian North Sea,
Norwegian Sea and Barents Sea. In addition Faroe has interests in
five producing oil and gas fields in the UK and Norway. Faroe
Petroleum joint venture partners include BP, Chevron, ConocoPhillips,
DONG, DSM, Eni, E.ON Ruhrgas, GDF, OMV, RWE Dea, Shell and Statoil
all of which have an outstanding track record in oil and gas
exploration and development.
Faroe Petroleum is quoted on the AIM Market of the London Stock
Exchange with offices in Aberdeen, Stavanger and Torshavn. The
Company has a highly experienced team of professionals focused on
creating exceptional value for its shareholders.
=--END OF MESSAGE---
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
|