TIDMFPM
RNS Number : 6654I
Faroe Petroleum PLC
21 June 2017
21 June 2017
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Statoil Press Announcement regarding plans for development and
operation ("PDO") of Njord and Bauge
Faroe Petroleum, the independent oil and gas company focusing
principally on exploration, appraisal and production opportunities
in Norway, the UK and Atlantic Margin, notes Statoil's press
announcement of 20 June 2017 regarding PDO of Njord and Bauge in
the Norwegian North Sea.
Graham Stewart, Chief Executive of Faroe Petroleum
commented:
"Faroe are delighted at the efficient progress Statoil is making
with this important project. The economics of this project remain
very attractive and will make a significant contribution towards
Faroe's planned production and cash flow growth. We have a material
and strategic position in the Greater Njord Area through our
working interests in the Njord, Hyme and Bauge fields (Faroe 7.5%),
as well as the neighbouring Fenja (formerly Pil and Bue) field
(Faroe 25%), which are to be tied in subsea to the Njord field
host."
Statoil announcement:
"The plans for development and operation of Njord and Bauge in
the Norwegian Sea have now been approved by the authorities.
The Njord A platform and the Njord Bravo floating storage and
offloading vessel (FSO) will be upgraded to recover the remaining
resources in the Njord and Hyme fields, whereas Bauge is a new
field development to be tied in to the Njord A platform.
"We are pleased that the authorities have now approved the plans
for Njord and Bauge, two important fields on the Norwegian
continental shelf. The investments, totalling NOK 20 billion, will
trigger high activities and spin-offs for the Norwegian society and
Norwegian supply industry," says Torger Rød, Statoil's head of
project development in Statoil.
The remaining resources on the Njord and Hyme field total 175
million barrels of oil equivalent. This corresponds to the reserves
produced from the Njord field since first oil in in 1997. In
addition, 73 million barrels of oil equivalent will be produced
from Bauge.
On behalf of the partnerships in the Njord, Hyme and Bauge
licences plans for the development and operation of the Njord and
Bauge fields were submitted to Norwegian authorities on 27 March
this year.
The original PDO for the Njord field was submitted more than 20
years ago. The field will now produce for another twenty years, and
the partnership has decided to upgrade and reuse both the Njord A
platform and the Njord Bravo FSO.
The Bauge field development concept includes one subsea
template, two oil producers and one water inject
"Kværner at Stord has been awarded the contract for upgrading
the platform and work facilitating the tie-in of Bauge and
potential future third-party tie-ins," says Rød.
"Njord remaining on stream until 2040 is important for our
specialist communities in Kristiansund and Stjørdal, as well as the
mid-Norway supply industry. An upgraded field centre and new
infrastructure at Njord also allows for the development of other
fields in the area," says Siri Espedal Kindem, senior vice
president, Operations North, Development and Production Norway.
Next year the Njord partners will award the contract for
upgrading the Njord Bravo FSO. First oil is scheduled for the end
of 2020."
- Ends -
For further information please contact:
Faroe Petroleum plc Tel: +44 (0) 1224 650
Graham Stewart, CEO 920
Stifel Nicolaus Europe Tel: +44 (0) 20 7710
Limited 7600
Callum Stewart / Nicholas
Rhodes / Ashton Clanfield
BMO Capital Markets Tel: +44 (0) 207 236
Neil Haycock / Tom 1010
Rider / Jeremy Low
FTI Consulting Tel: +44 (0) 20 3727
Edward Westropp / 1000
Emerson Clarke
Notes to Editors
The Company has, through successive licence applications and
acquisitions, built a substantial and diversified portfolio of
exploration, appraisal, development and production assets in
Norway, the UK and Ireland.
Faroe Petroleum is an experienced licence operator having
operated several exploration wells successfully in Norway and the
UK and is also the production operator of the Schooner and Ketch
gas fields in the U.K. Southern Gas Basin and the Trym and Oselvar
fields in the Norwegian North Sea. Faroe also has extensive
experience working with major and independent oil companies both in
Norway and in the UK.
The Company's substantial licence portfolio provides a
considerable spread of risk and reward. Faroe has an active E&A
drilling programme and has interests in a portfolio of producing
oil and gas fields in the UK and Norway, including the Schooner and
Ketch gas fields and the Blane oil field in the UK, and interests
in the Brage, Ringhorne East, Ula, Tambar, Oselvar and Trym fields
in Norway. In December 2016 the Company completed the acquisition
of a package of Norwegian producing assets from DONG Energy
including interests in the Ula, Tambar, Oselvar and Trym fields.
Full year average production for 2017, is estimated to be between
12,000-15,000 boepd. The investment programme to increase
production from the Company's existing fields continues, with the
planned installation of gas lift and drilling of two infill wells
on Tambar (Faroe 45%) and the recommencment of infill drilling on
the Brage field (Faroe 14.3%).
In November 2013 and March 2014 Faroe announced the Snilehorn
and Pil discoveries in the Norwegian Sea in close proximity to the
Njord and Hyme fields. More recently, in July 2016 the Company
announced the Brasse discovery, next to the Brage field, and the
Njord North Flank discovery, next to the Njord field, both in
Norway.
Norway operates a tax efficient system which incentivises
exploration, through reimbursement of 78% of costs in the
subsequent year. Faroe has built an extensive portfolio of high
potential exploration licences in Norway which, together with its
established UK North Sea positions provides the majority of
prospects targeted by the Company's sustainable exploration
drilling programme.
Faroe Petroleum is quoted on the AIM Market of London Stock
Exchange. The Company is funded from cash reserves and cash flow,
and has access to a $250million reserve base lending facility, with
a further US$100million available on an uncommitted "accordion"
basis. Faroe has a highly experienced technical team who are
leaders in the areas of seismic and geological interpretation,
reservoir engineering and field development, focused on creating
exceptional value for its shareholders.
This information is provided by RNS
The company news service from the London Stock Exchange
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