Faroe Petroleum PLC Goanna exploration well commences (0798P)
29 August 2017 - 4:01PM
UK Regulatory
TIDMFPM
RNS Number : 0798P
Faroe Petroleum PLC
29 August 2017
29 August 2017
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Goanna exploration well commences
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
commencement of the Goanna exploration well 39/9-22 S (Faroe 30%)
in licence PL 881.
The Goanna licence is located in the northern part of the
Norwegian North Sea, near the border with the UK and adjacent to
the giant producing Statfjord and Snorre fields, which offer the
potential for alternative export routes. The Goanna prospect
straddles the border between PL 881 and PL 037, and the well will
target a structural and stratigraphic prospect of Upper Jurassic
Munin Formation sandstones. Faroe's associated costs of drilling
this well will be fully carried by its joint venture partner up to
the budgeted dry hole cost.
Licence PL881 (Faroe 30%) was awarded in February 2017 as part
of the APA16 licence round and is operated by Wellesley Petroleum
(70%). The semi-submersible drilling rig, Deepsea Bergen, will be
used for the drilling operations. Results will be announced when
operations have been completed.
Graham Stewart, Chief Executive of Faroe Petroleum
commented:
"We are pleased to announce the spudding of this near field
exploration well in the very prolific Tampen area and surrounded by
giant oil fields. Goanna represents a target in a very exciting new
area for Faroe and the Company's dry hole costs in the well are
fully covered.
"Our rolling exploration programme continues with the Iris/Hades
(Aerosmith) exploration well and Fogelberg appraisal well scheduled
for the end of the year and the beginning of 2018, taking advantage
of low drilling costs and Norwegian tax incentives."
- 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 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 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. 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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