TIDMFPM
RNS Number : 4132U
Faroe Petroleum PLC
18 January 2017
18 January 2017
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Four new exploration licences awarded in Norway
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 four new prospective exploration licences, including two
operatorships, under the 2016 Norwegian APA (Awards in Pre-defined
Areas) Licence Round on the Norwegian Continental Shelf.
Norwegian North Sea
The Company has been awarded three new licences in the Norwegian
North Sea area:
Licence PL740 B Brasse extension - Block 31/4 and 31/7: Faroe
(50% and operator), Point Resources (50%): The possible northward
extension of the Brasse Discovery on the eastern side of the Brage
Field. The work programme is the same as the existing PL740 Brasse
licence (Faroe 50%).
Licence PL870 Pabow - Blocks 25/6, 9, 26/7: Faroe (20%), Statoil
(80% and operator). The Pabow Prospect is located on the edge of
the Stord Basin, just East of the Shango licence (Faroe 20%). The
main prospect is a large stratigraphic closure of Upper Jurassic
Ula reservoir sands. The work programme consists of G&G studies
before a drill or drop decision in 2018.
Licence PL881 Goanna - Block 33/9: Faroe (30%), Wellesley
Petroleum (70% and operator): The Goanna Prospect is located on the
Tampen Spur on the north-western margin of the North Viking Graben.
It is a structural and stratigraphic prospect of Upper Jurassic age
sandstones, updip of well 33/9-16. The work programme involves the
acquisition of 3D data and a drill or drop decision by 2018.
Norwegian Sea
The Company has been awarded one new licence in the Norwegian
Sea area:
Licence PL888 Canela - Blocks 6507/7: Faroe (40% and operator),
ConocoPhillips (30%), Wellesley Petroleum (30%). The license is
located on the Revfallet Fault Complex on the Halten Terrace. The
Canela prospect consists of down faulted blocks west of the
producing Heidrun Field. Reservoirs are expected to be the same
Fangst group sands as found in the Heidrun Field. The work
programme consists of the acquisition or reprocessing of 3D seismic
ahead of a drill or drop decision in 2019.
Graham Stewart, Chief Executive of Faroe Petroleum,
commented:
"We are very pleased to announce the award of four important new
licences in the latest Norwegian licensing round. We have added new
exploration plays to our portfolio as well as consolidating our
position around the high quality 2016 Brasse discovery which we
will be appraising later in 2017."
"We look forward to integrating these new licences into the
exploration portfolio. The addition of good quality exploration
acreage, our enhanced production portfolio and development pipeline
ensures that we continue to expose our shareholders to balanced but
high impact growth opportunities
- 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 / Nicholas
Rhodes / Ashton Clanfield
RBC Capital Markets Tel: +44 20 7653 4000
Matthew Coakes/Roland
Symonds
FTI Consulting Tel: +44 20 3727 1000
Edward Westropp/Kim
Camilleri
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 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 U.K. 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 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. The Company has recently acquired a package of Norwegian
producing assets from DONG Energy including interests in the Ula,
Tambar, Oselvar and Trym fields. Full year average production for
2016, including economic production from the acquisition of the
interest from DONG Energy, is estimated to be between 17,000-18,000
boepd.
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, and the
Njord North Flank discovery, next to the Njord field, both 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 $250 million reserve base lending facility,
with a further US$100 million available on an uncommitted
"accordion" basis. 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
APA Licence Awards
This information is provided by RNS
The company news service from the London Stock Exchange
END
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