TIDMFPM
RNS Number : 8774H
Faroe Petroleum PLC
13 June 2017
13(th) June 2017
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Brasse appraisal well preliminary results and commitment to
Drill Stem Test
Faroe Petroleum, the independent oil and gas company focusing
principally on exploration, appraisal and production opportunities
in Norway, the UK and Atlantic Margin, is pleased to announce the
results of the Brasse appraisal well in the Norwegian North Sea
(Faroe 50% and operator, Point Resources 50%).
The Faroe-operated Brasse appraisal well (31/7-2S) has been
drilled to a total depth of 2,450 metres, targeting a seismic
anomaly approximately two kilometres to the southeast of the main
discovery well (31/7-1 announced July 2016). The appraisal well
successfully penetrated the oil-water contact on the flank of the
Brasse field and encountered approximately 8.5 metres of gross
oil-bearing Jurassic reservoir above the oil water contact.
Preliminary results based on extensive coring, wireline logs and
pressure data show that the well has encountered oil in a sand rich
reservoir of very good quality. Preliminary analysis confirms the
same oil-water contact as in the 31/7-1 discovery well and
side-track and indicates good pressure communication within the
reservoir.
The joint venture has now committed to perform a Drill Stem Test
("DST") for further confirmation of well productivity,
investigation of reservoir distribution and to provide important
additional information for development project planning. Advanced
pressure gauges, which communicate with surface after the well has
been plugged and abandoned, will be installed in the 31/7-2S
appraisal well to provide long term pressure monitoring of the
reservoir.
The joint venture will shortly decide on whether to drill a
potential side-track to the current well (31/7-2S). The joint
venture will also decide on whether to drill a potential second
appraisal on the Brasse discovery later this year, dependent upon
further analysis of the 31/7-2S well and DST results. Evaluation
work on the recently awarded prospective Brasse Extension area
(Faroe 50% and operator) also continues, ahead of a potential
decision to drill in 2018. An update of the Brasse oil and gas
resources estimates will be announced following completion of the
ongoing Brasse appraisal drilling and testing operations.
The Brasse discovery is located within tie-back distance to
existing infrastructure: 13 kilometres to the south of the Brage
field platform, in which the Company holds a 14.3% working interest
and 13 kilometres to the south east of the Oseberg Field
Centre.
Graham Stewart, Chief Executive of Faroe Petroleum
commented:
"We are very pleased to announce the results of this important
appraisal well which firms up the southern extent of the
Faroe-operated Brasse field. This well proves the presence of
excellent hydrocarbon bearing reservoir to the south of the
original discovery and data gathered and yet to be gathered from
the forthcoming DST will provide key information as we continue to
progress towards development sanction. Importantly, preliminary
analysis of the well results confirms Brasse as a commercial
discovery.
"Brasse is a significant project for Faroe and the region and it
also highlights Faroe's ability to continue to add significant
value through low-cost drilling in our core areas.
"While continuing with an exciting ongoing exploration programme
in Norway, Faroe is also actively investing in pre-development and
development of several of our own discoveries, each of which has
the potential to transform the value of the Company in the coming
years."
- 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
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.
Brasse Discovery & Appraisal well
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLFTMBTMBABTTR
(END) Dow Jones Newswires
June 13, 2017 02:01 ET (06:01 GMT)
Faroe Petroleum (LSE:FPM)
Historical Stock Chart
From Apr 2024 to May 2024
Faroe Petroleum (LSE:FPM)
Historical Stock Chart
From May 2023 to May 2024