TIDMFPM
RNS Number : 6778X
Faroe Petroleum PLC
14 August 2018
14 August 2018
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Farm-In to UKCS Agar/Plantain Well
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 it has farmed
into the UK Continental Shelf ("UKCS") Agar Plantain exploration
and appraisal well close to the UK/Norwegian median line, operated
by Azinor Catalyst Limited ("Catalyst").
The Plantain exploration prospect will be drilled first followed
by a contingent side-track to appraise the Agar oil field,
discovered in 2014. Operator volumes in Agar and Plantain have been
estimated by Catalyst at a combined mid-case resource of 60 million
barrels of oil equivalent, with an upside case of 98 million
barrels of oil equivalent. Plantain is an Eocene oil prospect which
follows on from the original Agar oil discovery in 2014 (9/14a-15A)
and the analogous Frosk oil discovery (24/9-12 S) made in Norway by
AkerBP earlier this year.
Drilling on Agar Plantain is currently scheduled to commence
later this month using the Transocean Leader at a total estimated
gross cost of US$15 million. Faroe joins Catalyst (25.0% and
operator) and Cairn Energy plc (50.0%) in this sole-risk well, the
results of which will be announced on completion of drilling
operations. Faroe's equity interest in this well is 25.0%, to be
funded through existing cash resources, and through the same
transaction will also become a 12.5% equity interest holder in the
wider P1763 Licence (Apache 50.0% and operator, Cairn 25.0%,
Catalyst 12.5%).
This farm-in remains subject to the customary regulatory and
third party consents.
Graham Stewart, Chief Executive of Faroe Petroleum,
commented:
"We are pleased to announce the Agar Plantain farm-in, targeting
two oil prospects, adding a seventh well to our ongoing committed
exploration and appraisal programme and further increasing the near
term upside potential in our growing asset base. We look forward to
working with Catalyst, as operator, to unlock the potential of the
Agar Plantain prospect.
"Faroe's UK exploration strategy is to pursue on a highly
selective basis suitable opportunities, located close to existing
infrastructure offering potential for early exploitation through
subsea tie-back. The Agar Plantain well represents a good
opportunity to leverage our extensive Norwegian exploration
expertise and track record onto the UKCS, and in a cost-effective
manner, taking advantage of continuing low rig rates. This farm-in
follows on from our award of UKCS Block 30/14b in the UK 30(th)
Licencing Round announced in May, containing the high impact
prospect Edinburgh (Faroe 100%) which straddles the UK/Norwegian
median line."
For further information please contact:
Faroe Petroleum plc Tel: +44 (0) 1224 650
Graham Stewart, CEO 920
Stifel Nicolaus Europe Limited Tel: +44 (0) 20 7710
Callum Stewart / Nicholas Rhodes / Ashton 7600
Clanfield
BMO Capital Markets Tel: +44 (0) 207 236
Tom Rider / Jeremy Low 1010
FTI Consulting Tel: +44 (0) 20 3727
Ben Brewerton / Emerson Clarke 1000
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.
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 UK Southern Gas Basin and the Trym and Oselvar
fields in the Norwegian North Sea. Faroe has extensive experience
working closely with major and independent oil companies both in
Norway and in the UK.
The Company's substantial licence portfolio provides a diverse
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 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 12-14,000
boepd.
In November 2013 and March 2014 Faroe announced the Snilehorn
(Bauge) 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, close to the Brage field, and the
Njord North Flank (Bauge) discovery, close to the Njord field, both
in Norway. In February 2018, the Company announced the sale of part
of its interest in the Fenja field and in April 2018 announced the
significant Iris and Hades discoveries.
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 has had significant success in
exploration on the Norwegian continental shelf, and the great
majority of the Company's 2P reserves have been generated directly
from Faroe's exploration success.
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 $250 million reserve base lending facility,
with a further US$100million available on an uncommitted
"accordion" basis. The Company has also raised a $100 million
senior unsecured bond which is listed on the Oslo Børs. 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 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
MSCSFLEFDFASEFA
(END) Dow Jones Newswires
August 14, 2018 02:00 ET (06:00 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