Faroe Petroleum PLC Relinquishment of West of Shetland P1161 Licence (1548Q)
November 02 2012 - 2:00AM
UK Regulatory
TIDMFPM
RNS Number : 1548Q
Faroe Petroleum PLC
02 November 2012
2 November 2012
Faroe Petroleum plc ("Faroe" or the "Company")
Relinquishment of West of Shetland P1161 Licence
Faroe Petroleum plc, the independent oil and gas company
focusing principally on exploration, appraisal and production
opportunities in the Atlantic Margin, the North Sea and Norway,
announces that it intends to cease operations on the P1161 licence
(Freya and Fulla), west of Shetland (Faroe Petroleum 50% and
operator).
In July 2011 the Company drilled an exploration well (206/5a-3)
on the Fulla prospect and the targeted Clair and Whiting reservoir
sands were found to be oil-bearing. Extensive modelling has since
been undertaken to establish the resource potential and assess a
means of economically developing the Fulla discovery in conjunction
with the 1980 Freya discovery, located immediately to the south in
the adjoining Block 206/10a. The results of this work confirm
relatively poor oil quality, smaller than expected resource size
and limited access to infrastructure. No economically viable
solution has been found to bring these discoveries to development
at this time, and consequently the licence will be
relinquished.
Graham Stewart, Chief Executive of Faroe Petroleum plc,
commented:
"Faroe Petroleum adheres to a strict policy of protecting
shareholder interests such that substantial development investments
are only made where there is good potential for an attractive
return, and unfortunately the P1161 licence does not satisfy our
economic criteria. The high potential West of Shetlands area
continues to be a core element of Faroe Petroleum's strategy. The
Company has considerable knowledge and experience in this important
region, holding a large portfolio position there, including the
Glenlivet and Tornado gas discoveries, which are progressing
towards development.
"In addition, the Company announced on 21 September this year
the acquisition of an interest in the producing East Foinaven oil
field, and provisional awards of exploration licences were also
announced last week which included four in the west of Shetlands
area, of which three are operated by Faroe Petroleum."
"In the meantime we await the results of two UK exploration
wells currently being drilled, namely the N.Uist well (6.25%) (West
of Shetland) and the, Spaniards East well (8.4%) (UK North
Sea)."
For further information please contact:
Faroe Petroleum plc Tel: +44 1224 650 920
Graham Stewart, CEO
Panmure Gordon (UK) Limited Tel: + 44 20 7886 2500
Katherine Roe/Callum Stewart
Oriel Securities Limited Tel: +44 20 7710 7600
Michael Shaw/Ashton Clanfield
FTI Consulting Tel: +44 20 7831 3113
Billy Clegg/Edward Westropp
Notes to Editors
The Company has, through successive licence applications and
acquisitions, built a substantial portfolio of exploration,
appraisal, development and production assets across the Atlantic
Margin, the UK and Norwegian North Sea and the Norwegian Sea. Faroe
has extensive experience working with major oil companies and its
joint venture partners include BP, Chevron, DONG, ENI, E.ON
Ruhrgas, GDF, OMV, RWE Dea, Statoil and Wintershall.
The Company's licence portfolio provides considerable spread of
risk and reward, encompassing over 50 licences located in the
Atlantic margin (West of Shetlands), the UK North Sea and Norway.
In addition Faroe has interests in 10 producing oil and gas fields
in the UK and Norway, including interests in the Blane oil field in
the UK and the Brage, Hyme, Njord, Ringhorne East and Jotun oil and
gas fields in Norway.
Faroe Petroleum plc is quoted on the AIM Market of London Stock
Exchange plc with offices in Aberdeen, Stavanger, London and
Torshavn. The Company is well financed with a fully funded drilling
programme and has a highly experienced technical team at the
leading edge 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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