TIDMFPM
RNS Number : 5253U
Faroe Petroleum PLC
25 October 2017
25 October 2017
Faroe Petroleum plc
("Faroe", "Faroe Petroleum" or the "Company")
Commencement of Tambar infill drilling programme
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 drilling
operations have commenced on the Tambar development project in the
producing Tambar field in Norway (Faroe 45%).
Highlights
-- The Tambar development project consists of two new infill
wells and the installation of gas lift in three existing wells to
increase overall field production
-- The infill wells, which are being drilled by the Maersk
Interceptor drilling rig, will target undrained areas of the field
identified in the north and south with the potential to increase 2P
reserves further
-- The combination of the infill wells and installation of gas
lift has the potential to increase Tambar production markedly and
extend field life by up to 10 years, contributing to lower unit
operating costs in the Ula hub area
-- The gas produced by the Tambar field will be transported to
and reinjected into the Ula field (Faroe 20%) as part of its
successful ongoing Water Alternating Gas ('WAG') injection scheme,
which is expected to generate additional production over the life
of the Ula field
The Tambar and Tambar East Unit Fields are satellite fields,
approximately 16 kilometres to the southeast of the Ula field
located in the Norwegian North Sea. Tambar has been developed with
an unmanned wellhead platform tied back to the Ula Platform, with
three existing wells in the Tambar reservoir and one existing well
in Tambar East. The two fields are operated as one by Aker BP with
the majority of the developed reserves found in the Tambar
Field.
Graham, Stewart, CEO of Faroe Petroleum, said:
"I am pleased to announce the commencement of the high impact
work programme on the Tambar field. The joint venture sanctioned
the project in April this year and it has been a great achievement
by the operator to mobilise the rig and commence drilling
operations within such a short space of time.
"Drilling operations are now expected to continue to the end of
Q1 next year, and it is hoped that the two new wells will be
brought on stream before the end of April 2018.
"The significance of this work programme is not only the impact
on reserves and production but it also shows our ability to drive
value and upside potential from the existing portfolio. I look
forward to updating shareholders on the progress at Tambar and on
the commencement of our next exploration well, later in 2017, with
the high impact Iris/Hades (Aerosmith) exploration well (Faroe 20%)
expected to spud before the end of the year."
- Ends -
For further information please contact:
Faroe Petroleum plc Tel: +44 1224 650 920
Graham Stewart, CEO
Stifel Nicolaus Europe Tel: +44 20 7710 7600
Limited
Callum Stewart / Nicholas
Rhodes / Ashton Clanfield
BMO Capital Markets Tel: +44 20 7236 1010
Neil Haycock/ Tom Rider/
Jeremy Low
FTI Consulting Tel: +44 20 3727 1000
Edward Westropp/ Emerson
Clarke
John Wood, UK Asset Manager of the Company with over 15 years'
experience of the oil and gas industry and who holds an M.Sc in
Petroleum Engineering from Imperial College, has read and approved
the production and development disclosure in this regulatory
announcement.
Glossary
"boepd" barrels of oil equivalent per day
"net" the portion that are attributed
to the equity interests of Faroe
"reserves" reserves are those quantities of
petroleum anticipated to be commercially
recoverable by application of development
projects to known accumulations
from a given date forward under
defined conditions. Reserves must
further satisfy four criteria:
they must be discovered, recoverable,
commercial, and remaining (as of
the evaluation date) based on the
development project(s) applied.
Reserves are further categorized
in accordance with the level of
certainty associated with the estimates
and may be sub-classified based
on project maturity and/or characterized
by development and production status
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.
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.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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