TIDMFPM
RNS Number : 9337Y
Faroe Petroleum PLC
28 August 2018
28 August 2018
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Agar/Plantain Exploration and Appraisal Well Commences
Faroe Petroleum, the independent oil and gas company focusing
principally on exploration, appraisal and production opportunities
in Norway and the UK, notes the announcement made today by Azinor
Catalyst Limited ("Catalyst"), the operator of the Agar Plantain
exploration and appraisal well on the UK Continental Shelf
("UKCS").
Catalyst confirmed that the Plantain exploration well spud at
approximately 6:00pm on 24 August 2018 using the Transocean Leader
drilling rig. The well is expected to take approximately 28 to 38
days to complete and will be drilled to a depth of 1,845 metres
TVDSS. The Plantain well will be followed by a contingent
side-track to appraise the discovered Agar field. The total
estimated gross cost of well operations is US$15 million. The
results will be announced on completion of drilling operations.
Faroe announced on 14 August 2018 that it had farmed into the
Agar Plantain exploration and appraisal well taking a 25% interest
on the sole risk drilling activity and a 12.5% interest in the
wider P1763 Licence alongside Catalyst's existing partners Apache
Corporation and Cairn Energy PLC. 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.
Operator volumes in Agar and Plantain have been estimated by
Catalyst at a combined mid-case prospective resource of 60 million
barrels of oil equivalent, with an upside case of 98 million
barrels of oil equivalent.
Graham Stewart, Chief Executive of Faroe Petroleum,
commented:
"We are pleased to announce the spudding of the Plantain
exploration well which is the first in a sequence of seven
committed wells in Faroe's current exploration and appraisal
programme. The next prospect is the Faroe-operated Rungne
exploration well due to spud in September, located in Faroe's core
area of the Norwegian North Sea."
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,
with a net cash position of GBP84 million (unaudited) at 30 June
2018, up from GBP75 million at 31 December 2017 and in addition has
access to a US$250 million reserve base lending facility, with a
further US$100million available on an uncommitted "accordion"
basis. The Company has also raised a US$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.
Glossary
Prospective Resource those quantities of petroleum estimated, as of
a given date, to be potentially recoverable from
undiscovered accumulations by application of future
development projects. Prospective Resources have
both an associated chance of discovery and a chance
of development
TVDSS True vertical depth subsea
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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