Faroe Petroleum PLC Njord North Flank-2 exploration well commences (2336H)
August 16 2016 - 1:00AM
UK Regulatory
TIDMFPM
RNS Number : 2336H
Faroe Petroleum PLC
16 August 2016
16 August 2016
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Njord North Flank-2 exploration well commences drilling in the
Norwegian Sea
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 the commencement of
the Njord North Flank-2 ("NF-2") exploration well 6407/7-9 S (Faroe
7.5%).
The NF-2 prospect is located in Licence PL107C immediately north
of the Njord field (Faroe 7.5%). The well will target Middle and
Lower Jurassic sandstone reservoirs of the Ile and Tilje formations
in a fault-bounded structural closure, with a TD in the Lower
Jurassic Åre Formation. If successful, NF-2 could add further
reserves and value to the Njord Future Project.
The NF-2 exploration well, located in approximately 323 metres
of water, is operated by Statoil Petroleum AS (20%) using the Songa
Delta drilling rig, with co-venturers ENGIE E&P Norge AS (40%),
DEA E&P Norge AS (30%) and VNG Norge AS (2.5%). Results from
the well will be announced when drilling operations have been
completed.
Graham Stewart, Chief Executive of Faroe Petroleum
commented:
"I am pleased to announce the spudding of the Njord North
Flank-2 exploration well located in the Greater Njord Area, and in
close proximity to the Njord field. NF-2 is a near-field
exploration target, which provides further upside potential to
Faroe in one of our core areas. If successful this will add another
tie-in opportunity to the Greater Njord Area and the Njord Future
Project, which also includes the high quality Snilehorn
discovery.
"The NF-2 exploration well follows on from the significant Faroe
operated Brasse oil and gas discovery well and side-track announced
last month."
- Ends -
For further information please contact:
Faroe Petroleum plc Tel: +44 1224 650 920
Graham Stewart, CEO
Stifel Nicolaus Europe Tel: +44 20 7710 7600
Limited
Callum Stewart /Ashton
Clanfield
RBC Capital Markets Tel: +44 20 7653 4000
Matthew Coakes/ Daniel
Conti/Roland Symonds
FTI Consulting Tel: +44 20 3727 1000
Edward Westropp/Tom
Hufton
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.
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. Faroe recently applied
to be operator of two producing fields in Norway, Trym and Oselvar,
which the Company has agreed to acquire from DONG Energy. 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 five principal 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 and Ringhorne East fields in Norway. Full year average
production for 2016 is estimated to be between 7,000 boepd and
9,000 boepd. In July 2016 the Company announced the acquisition of
a package of Norwegian producing assets from DONG Energy including
interests in the Ula, Tambar, Oselvar and Trym fields which
together produced just under 10,000 boepd in the first four months
of 2016.
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 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 $200 million reserve base lending facility,
with a fully funded committed drilling programme through 2016.
Faroe has a highly experienced technical teams 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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