TIDMFPM
RNS Number : 1028P
Faroe Petroleum PLC
24 May 2018
24 May 2018
Faroe Petroleum plc
("Faroe Petroleum", "Faroe", the "Company")
New exploration licence awarded in UK 30(th) Round
Faroe Petroleum, the independent oil and gas company focussing
principally on exploration, appraisal and production opportunities
in Norway and the UK, is pleased to announce that it has been
awarded a new prospective exploration licence under the 30(th)
Licence Round on the UK Continental Shelf.
Block 30/14b - Edinburgh - Faroe 100% and Operator
The Edinburgh prospect straddles the UK/Norway border in the
Central North Sea, at the south eastern end of the prolific
Josephine Ridge area, south of the producing Blane field (Faroe
44.5%) and adjacent to the producing Flyndre/Cawdor fields operated
by Maersk. The structure is a large, tilted Mesozoic fault block,
and is one of the largest remaining undrilled structures in the
Central North Sea covering an area of over 40 square kilometres.
The prospective reservoirs in this new licence include the Triassic
Skagerrak Formation and the Upper Jurassic Ula age-equivalent
(Freshney and Fulmar) proven reservoir sandstones.
The large Edinburgh prospect spans multiple licences in UK and
Norwegian waters of the North Sea, and is also stratigraphically
split across one licence. Faroe's experience of partnering and
operating in both the UK and Norway represents a distinct advantage
in bringing the drilling of this highly exciting exploration
prospect to fruition.
The licence work programme comprises a drill-or-drop well, pore
pressure analysis and structural studies.
Graham Stewart, Chief Executive of Faroe Petroleum,
commented:
"We are pleased to announce the award of Block 30/14b which
contains the high-impact Edinburgh prospect. This award is
significant in that it is our first new licence in the UKCS since
2014 and leverages Faroe's considerable knowledge and technical
expertise gained over many years of activity in both UK and
Norwegian waters in order to access attractive cross-border
opportunities such as Edinburgh.
"Faroe is targeting multiple potential new discoveries with a
significant exploration and appraisal programme of six wells
committed in 2018 alone, taking full advantage of current low rig
rates. Faroe's track record in exploration has been outstanding,
having delivered the vast majority of the Company's 2P reserves and
2C resources. This in turn has led to the Company's very
significant development programme designed to more than treble
current production rates over the coming years. The exciting
Fogelberg appraisal well is currently underway, to be followed by
the high-impact Rungne exploration and then the new Brasse East
exploration well, both of which are located near to the Brasse
field.
- 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 25 years, has read and approved the
exploration and appraisal disclosure in this regulatory
announcement.
This announcement does not contain inside information.
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 UK 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 Norway and the UK including interests in the
Brage, Ringhorne East, Ula, Tambar, Oselvar and Trym fields in
Norway and the Schooner and Ketch gas fields and the Blane oil
field in the UK. 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 2018, is estimated to be
between 12-15,000 boepd.
In November 2013 and March 2014 Faroe announced the Snilehorn
and Pil (Fenja) discoveries in the Norwegian Sea in close proximity
to the Njord and Hyme fields. 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. In
February 2018, the Company announced the sale of part of its
interest in the Fenja field.
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. The Company has also raised a $100m senior unsecured 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
Block 30/14b - Edinburgh
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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