TIDMFPM
RNS Number : 8847D
Faroe Petroleum PLC
05 February 2018
5 February 2018
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Fogelberg appraisal 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, the UK and Atlantic Margin, is pleased to announce the
commencement of the Fogelberg appraisal well and contingent
sidetrack 6506/9-4S &4A in the Norwegian North Sea (Faroe
28.3%).
Faroe announced the Fogelberg oil and gas discovery in licence
PL433 in April 2010. The 6506/9-2 S well encountered gas and
condensate in the Middle Jurassic Garn and Ile formations, and no
fluid contacts were observed.
The gross size of the discovery has been estimated to be in a
range between 105 and 530 bcf (between 19 and 116 mmboe including
the condensate) of recoverable gas and condensate. The volumetric
range is large due to the Fogelberg discovery well being located
high on the structure. The main objectives of the appraisal well
are to narrow this range in the reserves estimates and to provide
additional information for development planning.
Fogelberg is located 18 kilometres north west of the producing
Åsgard complex where large quantities of gas and condensate have
been and continue to be produced and transported to several landing
points on the European continent.
The appraisal well will be drilled with the Island Innovator
semi-submersible drilling rig, and the joint venture partners are
Spirit Energy Norge AS (operator 51.7%) and PGNiG Upstream Norway
AS (20%)*.
Graham Stewart, Chief Executive of Faroe Petroleum
commented:
"We are pleased to announce the spud of the Fogelberg appraisal
well, which aims to derisk and prove up commercial volumes in the
Fogelberg field ahead of any decision to develop the field.
Fogelberg was one of Faroe's earlier discoveries and has the
potential to join a number of development and pre-development
projects which are on track to significantly grow Faroe's
production, cash flow and value in the coming years. The majority
of these developments are a direct result of our drilling
success.
"Looking ahead to Faroe's 2018 exploration programme, we
continue drilling on the Iris/Hades exploration well in the
Norwegian Sea, before drilling the Rugne and Cassidy prospects
later in the year."
- 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
*The Company's interest in this licence has increased from 15%
in 2010 to its current level following the withdrawal of previous
licenceees and the assignment of a 5% interest to PIGNiG which is
in the process of completion.
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.
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
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. 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.
Glossary
"mmboe" million barrels of oil equivalent
"bcf" billion cubic feet
This information is provided by RNS
The company news service from the London Stock Exchange
END
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