TIDMFPM
RNS Number : 0714C
Faroe Petroleum PLC
17 January 2018
17 January 2018
Faroe Petroleum plc
("Faroe Petroleum", "Faroe", the "Company")
Eight 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 eight new prospective exploration licences, including four
operatorships, in the Norwegian North Sea under the 2017 Norwegian
APA (Awards in Pre-defined Areas) Licence Round.
Licence PL926 Blue Libelle - Blocks 33/9, 33/12 and 34/10: Faroe
(40% and operator), DNO (30%) and Concedo (30%): The Blue Libelle
is on the Tampen Spur on the north-western margin of the North
Viking Graben. It is a structural prospect of Middle Jurassic age
sandstones that sits between the producing fields Statfjord and
Gulfaks. The work programme involves acquiring and/or reprocessing
3D seismic data and a drill or drop decision by February 2020.
Licence PL908 Århus - Block 9/11, 9/12, 10/10 and 10/11: Faroe
(30%), Statoil Petroleum (70% and operator): The Århus Prospect is
located in the Åsta Graben, north of the Trym Field in the Central
Graben where various targets in the Oligocene Vade Formation have
been mapped. The work programme involves the acquisition of new 2D
data with Electromagnetic data and a drill or drop decision by
February 2020.
Licence PL906 Skræmetindan - Blocks 7/11 and 7/12: Faroe (20%),
Aker BP (40% and operator), Maersk (20%) and Statoil (20%): The
Skræmetindan Prospect is located on the Cod Terrace in the Central
Graben. It is a structural prospect of Jurassic age containing
sandstones in the Ula Formation. The work programme involves
acquiring and reprocessing 3D seismic with a drill or drop decision
by February 2020.
Licence PL006E SE Tor Extension - Block 2/5: Faroe (85% and
operator), AkerBP (15%): This licence contains a portion of the
Paleocene Gomex exploration target which extends outside the
existing SE Tor Licence. The work programme is the same as the
existing PL006C SE Tor.
Licence PL810B Katie Extension - Blocks 2/1 and 8/10: Faroe (40%
and operator), Spirit Energy (30%) and AkerBP (30%): The licence
contains the north-eastward extension of the Katie Prospect located
on the eastern side of the Oda Development. The work programme is
the same as the existing PL810 Katie Licence, involving seismic
reprocessing and a drill or drop decision by February 2019.
Licence PL740C Brasse North Extension - Blocks 31/4: Faroe (50%
and operator), Point Resources (50%): The licence contains the
northward extension of the Brasse Extension on the eastern side of
the Brage Field. The work programme is the same as the existing
PL740/B Brasse Licence (Faroe 50%).
Licence PL065B Tambar Extension - Block 1/3: Faroe (45%), AkerBP
(55% and operator): This licence contains a potential
north-westward extension of the Tambar Field. The work programme is
the same as the existing PL065 Tambar licence.
Licence PL019E Ula Extension - Block 7/12: Faroe (20%), AkerBP
(80% and operator). The licence contains a potential eastward
extension of the Ula Field. The work programme is the same as the
existing PL019 Ula Licence.
Graham Stewart, Chief Executive of Faroe Petroleum,
commented:
"We are very pleased to announce the award of eight new and
prospective licences in the latest Norwegian licensing round. We
have further consolidated our position in core areas of the
Norwegian continental shelf in which we have delivered recent
exploration success.
"We look forward to high-grading these new licence opportunities
in the coming period. This good quality new exploration acreage,
together with our enhanced production portfolio and development
pipeline, ensures that our shareholders are exposed to a well
balanced and sustainable set of growth opportunities going
forward.
"Faroe has a material and exciting drilling programme in 2018.
We are currently drilling the Iris and Hades exploration well in
the Norwegian Sea, to be followed by the Fogelberg appraisal well.
Two further exciting Norwegian exploration wells, Rungne and
Cassidy, are planned to be drilled in the second half of 2018."
- 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 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 UK 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
13,000-15,000 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 recommencement 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. The Company has also raised a $100m senior unsecured bond.
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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