TIDMFPM
RNS Number : 8452J
Faroe Petroleum PLC
03 July 2017
3 July 2017
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Brasse appraisal well drill stem test results
Faroe Petroleum, the independent oil and gas company focusing
principally on exploration, appraisal and production opportunities
in Norway, the UK and Atlantic Margin, is pleased to announce the
results of the Drill Stem Test (DST) on the 31/7-2 S Brasse
appraisal well in the Norwegian North Sea (Faroe 50% and operator,
Point Resources 50%).
Highlights
-- High flow rates & excellent reservoir: the well flowed at
a maximum stable rate of 6,187 bpd of oil providing clear evidence
of highly prolific reservoir and excellent quality sands with
multi-Darcy permeability at the appraisal well location
-- High quality light crude: similar quality crude to the nearby
producing Brage field (Faroe 14.3%)
-- Test free of undesirables: no undesirable components detected
during the test which was sand- and water-free
-- Side-track next: a side-track well to be drilled following
DST to further appraise reservoir distribution
-- Volumes update to follow side-track: an update estimated
range of recoverable resource volumes will be announced upon
completion of the side-track
The Brasse appraisal well DST has been completed providing clear
evidence of a highly prolific reservoir and excellent quality sands
with multi-Darcy permeability at this location. An extensive data
acquisition programme was carried out in the well, including the
cutting of cores together with a full suite of wireline logs, fluid
samples and a DST. The well flowed at a constrained maximum stable
rate of 6,187 bpd of oil from a 3.6 metres perforated interval,
through a 1" choke and with 800 psia at the wellhead. Flow and
pressure measurements indicate a prolific reservoir.
The site sampling of the fluid produced during the DST confirms
good quality light crude similar to the nearby Brage field (Faroe
14.3%), with the presence of 36.2deg API oil with a gas/oil ratio
of 887 scf/stb, to be confirmed by onshore laboratory testing.
Trace element analysis revealed no undesirable components and the
oil flowed sand and water free for the duration of the test.
The Brasse appraisal programme will continue now with the
drilling of a side-track well, targeting a location approximately
1,000 metres west of the current main well bore. The objective of
the side-track is to map the reservoir distribution and further
delinate the Brasse structure. A further announcement will be made
at the completion of drilling activities including a revised
estimate of recoverable resources for the discovery.
The Brasse field discovery was made by Faroe in 2016 and is
located within tie-back distance to existing infrastructure: 13
kilometres to the south of the Brage field platform, in which the
Company holds a 14.3% working interest and 13 kilometres to the
south east of the Oseberg Field Centre. Faroe operates the field
with 50% equity together with Point Resources (50%).
Graham Stewart, Chief Executive of Faroe Petroleum
commented:
"We are very pleased to announce the results of this successful,
Faroe-operated, drill stem test on the Brasse field, which
significantly de-risks further upside in this reservoir and the
licence area as a whole. The outstanding flow rates and reservoir
quality confirmed by this well, located at the periphery of the
Brasse field, are very good news and provide valuable information
for our planning of the Brasse development project. We now look
forward to the results of the imminent side-track with the
objective of proving up further potential on this licence.
"The significant positive progress on Brasse to date is an
excellent result from Faroe's world class exploration and drilling
team and further validates our decision to take material stakes in
selective high-impact exploration prospects, offering significant
value upside to our shareholders."
- Ends -
For further information please contact:
Faroe Petroleum plc Tel: +44 (0) 1224 650
Graham Stewart, CEO 920
Stifel Nicolaus Europe Tel: +44 (0) 20 7710
Limited 7600
Callum Stewart / Nicholas
Rhodes / Ashton Clanfield
BMO Capital Markets Tel: +44 (0) 207 236
Neil Haycock / Tom 1010
Rider / Jeremy Low
FTI Consulting Tel: +44 (0) 20 3727
Edward Westropp / Emerson 1000
Clarke
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 30 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.
Glossary
"API oil" American Petroleum Institute
gravity, a measure of
how heavy or light a
petroleum liquid is
compared to water
---------------------- -------------------------------
"bpd" barrels of oil per day
---------------------- -------------------------------
"Bscf" billions of standard
cubic feet of gas
---------------------- -------------------------------
"choke" a valve used to restrict
the flow of fluid under
pressure
---------------------- -------------------------------
"DST" drill stem test
---------------------- -------------------------------
"preliminary resource preliminary quantification
estimate" of hydrocarbons estimated
to be potentially recoverable
from a known accumulation
---------------------- -------------------------------
"psia" pounds per square inch
absolute
---------------------- -------------------------------
"scf" standard cubic feet
---------------------- -------------------------------
"stb" barrel of stock tank
oil
---------------------- -------------------------------
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. In December 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 2017, is estimated to be between
12,000-15,000 boepd. The investment programme to increase
production from the Company's existing fields continues, with the
planned installation of gas lift and drilling of two infill wells
on Tambar (Faroe 45%) and the recommencment of infill drilling on
the Brage field (Faroe 14.3%).
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 $250million reserve base lending facility, with
a further US$100million 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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