Well Commences on Significant East Breagh Prospect
18 August 2008
Faroe Petroleum plc
("Faroe Petroleum", "Faroe" or the "Company")
Well Commences on Significant East Breagh Prospect
Faroe Petroleum, 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 drilling has commenced on the significant
gas prospect, East Breagh in the Southern North Sea.
The joint venture partners are Faroe (10%), Sterling Resources (45%
and operator), Stratic (10%), Regernesys (15%), Encore (15%) and
Petroventures (5%). The Ensco 70 jack-up drilling rig has been
secured under a turnkey agreement with specialist well construction
firm Advanced Drilling Technology International (ADTI), to drill a
vertical well (42/13-4) on the East Breagh prospect. The well is
designed to confirm reservoir extent and potentially significant
upside to gas already discovered and appraised on the West Breagh
area with the 42/13-3 well, drilled by the partnership in late 2007.
Following the East Breagh well, a high angle / horizontal appraisal
well is planned for West Breagh (42/13-5) to further evaluate this
part of the field. These wells will provide key data towards
assessing the economic viability of developing the Breagh gas field
in terms of hydrocarbon resource base and well performance and will
also provide better understanding of further hydrocarbon potential in
the greater Breagh area.
Graham Stewart, Chief Executive of Faroe Petroleum, commented:
"We are very pleased to be able to announce the commencement of this
exciting well; the Breagh area is showing great promise following the
successful appraisal well drilled on West Breagh last year. If the
East Breagh well proves up further reserves there is good scope for a
significant gas field development, and potential for considerable
value creation for our shareholders".
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Enquiries:
Faroe Petroleum plc
Graham Stewart
Tel: 01224 650 920
gstewart@faroe-petroleum.com
Panmure Gordon
Ashton Clanfield
Katherine Roe
Tel: 020 7459 3600
Ashton.Clanfield@panmure.com
Katherine.Roe@panmure.com
Financial Dynamics
Jonathon Brill/Billy Clegg/Edward Westropp
Tel: 0207 269 7157
billy.clegg@fd.com
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 47 licence portfolio provides considerable spread of risk
and reward, encompasses eight licences West of Shetlands, five
licences offshore the Faroe Islands, four licences in the Moray Firth
area of the UK Central North Sea, ten licences in the Southern gas
basin and twenty licences in the Norwegian North Sea and Norwegian
Sea. Faroe Petroleum joint venture partners include BP, Chevron,
ConocoPhillips, DONG, DSM, Eni, E.ON Ruhrgas, GDF, Oilexco, OMV, RWE,
Shell and Statoil all of which have an outstanding track record in
oil and gas exploration and development.
The Company is pursuing an active, fully funded drilling programme
with wells in each of its core areas being drilled over the coming 18
months.
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.
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