TIDMFPM
RNS Number : 9580T
Faroe Petroleum PLC
12 January 2017
12 January 2017
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Boné (Dazzler) exploration well commences and Brasse appraisal
well added to 2017 drilling programme
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 Boné exploration well 7318/12-1 (Faroe 20%) and the decision to
drill an appraisal well on the Brasse discovery in the 2017
drilling programme.
Boné (Dazzler) exploration well 7318/12-1 (Faroe 20%)
Licence PL716, which contains the Boné prospect (previously
named Dazzler), is located in the western part of the Norwegian
Barents Sea in a similar structural setting to the Johan Castberg
discovery. The primary targets for the well are the Jurassic Stø-
and Nordmela sandstones with a secondary target within the Triassic
Fruholmen and Snadd sandstone formations.
Licence PL716 was awarded to Faroe in June 2013 in the Norwegian
22(nd) Licensing Round together with co-venturers Eni Norge AS (30%
and operator), Bayerngas Norge AS (20%), Petoro AS (20%) and Point
Resources AS (10%). The Boné well is being drilled using the
Scarabeo 8 drilling rig and the results will be announced when
drilling operations are complete.
Brasse Discovery appraisal well
Faroe Petroleum is also pleased to announce that the Licence
PL740 partnership has committed to the drilling of an appraisal
well on the Brasse discovery in mid-2017 (Faroe 50%). Faroe as
operator has entered into a contract with Odfjell Drilling for the
use of the semi-submersible drilling rig, Deepsea Bergen, for the
drilling operations.
Faroe announced the Brasse oil and gas discovery in PL740 in
July 2016. The main wellbore 31/7-1 encountered an 18 metre gross
gas column and a 21 metre gross oil column, and the sidetrack well
(31/7-1A) encountered a 6 metre gross gas column and 25 metre gross
oil column, with both wells encountering good quality Jurassic
reservoir. Total gross volumes of recoverable hydrocarbons have
been estimated by the Company to be 28-54 mmbbls of oil and 89-158
bcf of gas (43-80 mmboe gross in aggregate). The main objectives of
the appraisal well are to reduce the uncertainty in the reserves
estimates and to provide important additional information for the
development project.
The Brasse discovery 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.
Graham Stewart, Chief Executive of Faroe Petroleum
commented:
"We are very pleased to announce the spudding of Boné, our first
exploration well in 2017, located 90 kilometres to the northwest of
the Johan Castberg discovery. This high impact well will test a
large horst structure with very significant volume potential.
"We are also pleased to announce the forthcoming appraisal well
on the Brasse licence which will serve to mature this discovery
towards development. Together with Point Resources we are
progressing feasibility studies which will be ongoing in parallel
with the appraisal project.
"2017 will be another significant year for Faroe. We have a very
full programme ahead of us in our core areas including exploration,
appraisal, infill drilling and early stage development activity.
Coupled with our strong production profile, solid cash position and
recently increased and substantially undrawn debt facilities, we
look forward to another period of growth across the business."
- 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 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.
Glossary
bcf billion cubic feet
------- -----------------------
mmbbls million barrels of oil
------- -----------------------
mmboe million barrels of oil
equivalent
------- -----------------------
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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