FPM Faroe Petrol.

 
TIDMFPM 
 
1 November 2010 
 
            Faroe Petroleum plc ("Faroe Petroleum" or the "Company") 
 
   Results of Anne Marie exploration well and operational update on Lagavulin 
                                exploration well 
 
 
Faroe Petroleum plc, the independent oil and gas company focusing principally on 
exploration,  appraisal and production opportunities in the Atlantic margin, the 
North Sea and Norway, is pleased to announce the results of drilling on the Anne 
Marie  exploration prospect (Faroe Petroleum 12.5%), located offshore in Licence 
005 in  the  Faroe  Islands,  and  provide  an operational update on drilling on 
Lagavulin, UK west of Shetlands. 
 
Anne Marie 
Well  6004/8a-1 on the Anne Marie prospect was spudded on 23/07/2010 and drilled 
to  a total depth  of 3,901m, in 1,106 metres  water depth, 190 kilometres south 
east of Tórshavn. Total depth was reached on 25 October 2010.  Hydrocarbons have 
been found in thin sandy layers dispersed in a thick volcano-clastic sequence of 
Paleocene age, indicating robust evidence of the presence of an active petroleum 
system.   Further  analyses  are  in  progress  to  evaluate  the  size  and the 
characteristics of the discovery. 
 
The  Norwegian semi-submersible  drilling rig  Seadrill West  Phoenix, which was 
used  for the drilling  operation, is expected  to plug and  abandon the well as 
planned and move away from the location in the coming days. 
 
The  joint  venture  is  composed  of  Eni  Denmark  BV  as  operator  with 25% 
participating  interest, Dana Petroleum 25%, OMV  20%, Cieco E&P (Faroe) Limited 
12.5%, First Oil Expro 5% and Faroe Petroleum 12.5%. 
 
Lagavulin 
The  Lagavulin  exploration  well  (Faroe  10%), operated  by Chevron, in the UK 
Atlantic  Margin to the  west of the  Shetland Islands, was  spudded last month. 
 The  well  is  being  drilled  with  the  Stena Carron drillship operating 230 
kilometres  (143 miles)  north east  of Chevron's  Rosebank/Lochnagar discovery. 
 The  Lagavulin well will target a number of potential oil bearing reservoirs of 
pre-Cretaceous  to  Paleocene  age  located  within  a large, elongated four-way 
structural  closure.  Lagavulin, which lies  across blocks 217/10 and 210/14 and 
15, has  a reserve potential of more than 500 million barrels of oil equivalent, 
classing  Lagavulin as one  of the largest  undrilled structural closures on the 
Atlantic  Margin.  The well is expected to take around 120 days to complete from 
spud. 
 
Graham Stewart, Chief Executive of Faroe Petroleum, commented: 
 
"Whilst  we  did  not  encounter  thick  reservoir  sands at the Anne Marie well 
location,   the   discovery  gives  us  significant  encouragement  to  continue 
exploration  efforts in this licence,  which we have held  together with ENI for 
over 10 years." 
 
"Our high impact exploration programme continues with the drilling of Lagavulin, 
and  Faroe's  ongoing  multi-well  exploration  drilling programme will carry on 
through 2011 and beyond as we push forward to test our substantial northern seas 
portfolio  of over 40 significant licences,  to which we have  last week added a 
further four, as operator, awarded under the UK's 26th Licensing Round." 
 
For further information please contact: 
 Faroe Petroleum plc            Tel: +44 1224 650 920 
 Graham Stewart 
 
 
 Panmure Gordon (UK) Limited    Tel: +44 20 7459 3600 
 Katherine Roe/Callum Stewart 
 
 
 Oriel Securities Limited       Tel: +44 20 7710 7600 
 Michael Shaw/Neil Langford/ 
 Ashton Clanfield 
 
 
 Financial Dynamics             Tel: +44 20 7831 3113 
 Billy Clegg/Edward Westropp 
 
 
 
Andrew  Roberts, Exploration Manager of Faroe Petroleum and a Geophysicist (BSc. 
Joint Honours in Physics and Chemistry from Manchester University), 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 exploration, appraisal 
and  production  opportunities,  with  significant  stakes  and  a fully funded, 
dynamic  work  programme.    Faroe  Petroleum  has  through  successive  licence 
applications  and  acquisitions  built  a  substantial portfolio of exploration, 
appraisal,  development and production 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  over 40 licences  located in  the West  of Shetlands, offshore the 
Faroe  Islands, the  UK North  Sea and  Norway.  Faroe  Petroleum has one of the 
largest  portfolios in the Atlantic Margin area. In addition Faroe Petroleum has 
interests  in five  producing oil  and gas  fields in  the UK and Norway.  Faroe 
Petroleum  has extensive  experience working  with major  oil companies  and its 
joint  venture partners include BP, Chevron,  DONG, Eni, E.ON Ruhrgas, GDF, OMV, 
RWE Dea, Statoil and Wintershall. 
 
The  Company  has  had  considerable  exploration  success in 2009 and 2010 with 
significant  discoveries in the Glenlivet and Tornado prospects, both located in 
the  UK west of Shetlands area, and  with the Fogelberg and Maria discoveries in 
the Norwegian Sea. 
 
Faroe  Petroleum announced  on 26 October  the acquisition  from ENI  of an 18% 
equity  interest  in  the  producing  Blane  oil  field  in the North Sea.  This 
acquisition,  which is subject to joint  venture partner consent, the resolution 
of  pre-emption  rights  and  regulatory  approval, is designed to significantly 
increase the Company's oil and gas revenue generation capacity.  Blane is a good 
quality  oil field  with low  operating costs,  material potential upside and is 
very  tax efficient  for Faroe  Petroleum, providing  shelter for  both past and 
future  tax losses and eliminating the Capital Gains Tax liability from the sale 
of Breagh. 
 
As   a   central   element   of  the  Company's  business  model,  ensuring  the 
sustainability  of its  continuing drilling  programme, Faroe Petroleum actively 
participates  in licensing rounds in its  core areas.  On 28 October the Company 
was  awarded four new exploration licences in  the UK West of Shetlands area, in 
the  UK's 26th Licensing Round, with  significant participating interests and as 
operator  in each  licence.  These  licences cover  a large area, extending over 
some 23 blocks or part blocks. 
 
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 and is a leader in oil and gas exploration and 
appraisal, focused on creating exceptional value for its shareholders. 
 
 
[HUG#1457432] 
 
 
 
 
 
 
 
 
This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
 
Source: Faroe Petroleum PLC via Thomson Reuters ONE 
 

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