TIDMFPM
RNS Number : 8183X
Faroe Petroleum PLC
29 November 2017
29(th) November 2017
Faroe Petroleum plc
("Faroe", "Faroe Petroleum" or the "Company")
Iris/Hades (Aerosmith) 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 Iris/Hades (Aerosmith) exploration well,
6506/11-10 (Faroe 20%) in licence PL644/PL644B.
The Iris/Hades (Aerosmith) well is located in the Halten
Terrace, some 200 kilometres offshore in the Norwegian Sea and
adjacent to the producing Morvin and Aasgard fields, operated by
licence partner Statoil. The well will target two formations, one
in the Cretaceous and the other in the Jurassic.The Cretaceous
Hades prospect is a closure on the flank of the Sklinna Ridge, with
the Jurassic Iris prospect located directly underneath, within a
rotated fault block.
Licence PL644 and PL644B (Faroe 20%) were awarded in February
2012 and are operated by OMV (30%) with partners Statoil (30%) and
Centrica (20%). The semi-submersible drilling rig, Deepsea Bergen,
will be used for the drilling operations. Results will be announced
when operations have been completed, which is estimated to take
approximately 90 days.
Graham Stewart, Chief Executive of Faroe Petroleum
commented:
"We are pleased to have spudded this well; not only is it good
to end the year with another high impact exploration well but it is
also good to be drilling a prospect which has been part of our
portfolio for a number of years and which is located in an area we
know very well and have had significant success in.
"The Iris/Hades (Aerosmith) well marks the end to our 2017
exploration drilling programme, which has continued to deliver
value and an industry leading success rate of over 30% due to the
diligence and hard work of our in-house technical teams.
"We end 2017 in a great position, with a pipeline of high
quality, world class development projects, to grow materially our
production and with a very strong balance sheet, which we recently
further strengthened with the successful issue of a $100m unsecured
bond. I look forward to updating the market on Faroe's progress in
early 2018."
- 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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