TIDMFPM
RNS Number : 8364Z
Faroe Petroleum PLC
19 December 2017
19 December 2017
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Fenja field development plan submission
Faroe Petroleum, the independent oil and gas company focusing
principally on exploration, appraisal and production opportunities
in Norway and the UK, is pleased to announce that the partners in
the Fenja (previously named Pil/Bue) field (licence PL586) have
submitted the Plan for its Development and Operation ("PDO") to the
Norwegian Ministry of Petroleum and Energy.
The Fenja field (Faroe 25%) was discovered in 2014, in the
Norwegian Sea, approximately 30 kilometres south west of the
Statoil-operated Njord field (Faroe 7.5%). The operator of the
Fenja development, VNG, estimates that the field contains gross
recoverable resources of approximately 100 million barrels of oil
equivalent, and is comprised predominantly of oil.
The proposed Fenja field development will comprise three
horizontal production wells-one gas injector well and two water
injector wells-tied back to the Njord A floating production
facility for processing and export via the Njord B floating storage
and offloading vessel (FSO). The Fenja licence partners are
planning to invest NOK 10.2 billion (GBP900 million) with planned
production start-up in 2021 and a planned field life of 16
years.
Graham Stewart, CEO of Faroe Petroleum commented:
"I am very pleased to announce that the development plan for the
Fenja field has now been submitted. When Fenja comes on stream it
will provide significant additional volumes across the Njord host
facility (Faroe 7.5%, and currently undergoing refurbishment) and
contribute considerable cash flow to Faroe. Fenja is another
outstanding example of the exploration success and subsequent
monetisation Faroe has delivered in Norway.
"As 2017 draws to a close, Faroe Petroleum is in a good place,
with a fully funded investment programme, a strong balance sheet, a
number of high quality development projects underway to meet our
production goals. We also look forward to another high impact
exploration programme in 2018, starting with the OMV-operated
Aerosmith/Hades well, currently drilling in Norway."
- 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 / Emerson 1000
Clarke
Andrew Roberts, Group 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 30 years, has read and approved the
exploration and appraisal disclosure in this regulatory
announcement.
The Company's internal estimates of resources contained in this
announcement were prepared in accordance with the Petroleum
Resource Management System guidelines endorsed by the Society of
Petroleum Engineers, World Petroleum Congress, American Association
of Petroleum Geologists and Society of Petroleum Evaluation
Engineers.
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014, and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
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
13,000-15,000 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 recommencement 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 and $100m unsecured listed Nordic Bond. 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
END
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