TIDMFPM
RNS Number : 5802E
Faroe Petroleum PLC
19 October 2018
19 October 2018
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Rungne Exploration Well in Norway Commences
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 Faroe-operated Rungne exploration well 30/6-30 in the Norwegian
North Sea (Faroe 40% working interest).
The Rungne prospect is located in the Norwegian Sea, c. 30
kilometres north west of the Company's Brasse field and immediately
north of the producing Oseberg oil field. The well will target the
Middle Jurassic Oseberg Formation, with secondary targets in the
Etive and Ness formations.
The total expected vertical depth of the well is approximately
3,490 metres, in water depth of 119 metres. Drilling operations
will be undertaken using the semi-submersible Transocean Arctic
rig. The current joint venture partners in the PL825 licence are
Faroe Petroleum (40% and operator), Lundin Norway AS (30%*) and
Spirit Energy Norge AS (30%*). Subject to completion of two recent
transactions, the PL825 partnership will consist of Faroe (40% and
operator), Equinor Energy AS (30%*), Spirit Energy Norge AS (20%*)
and DNO Norge AS (10%*).
Graham Stewart, Chief Executive of Faroe Petroleum
commented:
"I am pleased to announce the spudding of the Faroe-operated
Rungne exploration well, a near field exploration target which
provides us with significant upside potential in one of our core
areas. The well is in close proximity to the Faroe-operated Brasse
field and existing infrastructure, including the producing
Equinor-operated Oseberg oil field.
"This is a very active exploration period for Faroe. We have six
exploration wells and one appraisal well committed to drill over
the coming 12 months, and many more wells lining up for drilling
thereafter. The first of these, the Agar/Plantain exploration well
in the UK, is currently being drilled, and this will be followed by
the Faroe-operated Brasse East well, to be drilled back to back
with the Rungne well.
"These exploration wells are targeting a significant unrisked
resource potential net to Faroe of 80-150 mmboe. In addition, the
appraisal well on the large Iris-Hades discovery, scheduled for H1
2019, has the potential to prove up very significant resources for
the Company."
For further information please contact:
Faroe Petroleum plc Tel: +44 (0) 1224 650
Graham Stewart, CEO 920
Stifel Nicolaus Europe Limited Tel: +44 (0) 20 7710
Callum Stewart / Nicholas Rhodes / Ashton 7600
Clanfield
BMO Capital Markets Tel: +44 (0) 207 236
Tom Rider / Jeremy Low / Tom Hughes 1010
FTI Consulting Tel: +44 (0) 20 3727
Ben Brewerton / Sara Powell / Toby Chidavaenzi 1000
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.
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.
* Lundin Norway AS and Spirit Energy Norge AS have assigned
respectively a 20% and 10% interest in PL825 to Equinor Energy AS
and Lundin Norway AS its remaining 10% to DNO Norge AS, all of
which are subject to completion.
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 has extensive experience
working closely with major and independent oil companies both in
Norway and in the UK.
The Company's substantial licence portfolio provides a diverse
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 Norway and the UK, including interests in the Brage,
Ringhorne East, Ula, Tambar and Trym fields in Norway and the Blane
oil field in the UK. In 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 2018, is estimated to be between
12-14,000 boepd.
In November 2013 and March 2014 Faroe announced the Snilehorn
(Bauge) and Pil (Fenja) discoveries in the Norwegian Sea in close
proximity to the Njord and Hyme fields. In July 2016, the Company
announced the Brasse discovery, close to the Brage field, and the
Njord North Flank (Bauge) discovery, close to the Njord field, both
in Norway. In February 2018, the Company announced the sale of part
of its interest in the Fenja field and in April 2018 announced the
significant Iris and Hades discoveries.
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 has had significant success in
exploration on the Norwegian continental shelf, and the great
majority of the Company's 2P reserves have been generated directly
from Faroe's exploration success.
Faroe Petroleum is quoted on the AIM Market of London Stock
Exchange. The Company is funded from cash reserves and cash flow,
with a net cash position of GBP84 million (unaudited) at 30 June
2018, up from GBP75 million at 31 December 2017 and in addition has
access to a $250 million reserve base lending facility, with a
further US$100million available on an uncommitted "accordion"
basis. The Company has also raised a $100 million senior unsecured
bond which is listed on the Oslo Børs. 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
boepd barrels of oil equivalent per day
mmboe millions of barrels of oil equivalent
Prospective Resource those quantities of petroleum estimated, as of
a given date, to be potentially recoverable from
undiscovered accumulations by application of future
development projects. Prospective Resources have
both an associated chance of discovery and a chance
of development
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DRLLIFEEIFLALIT
(END) Dow Jones Newswires
October 19, 2018 02:05 ET (06:05 GMT)
Faroe Petroleum (LSE:FPM)
Historical Stock Chart
From Apr 2024 to May 2024
Faroe Petroleum (LSE:FPM)
Historical Stock Chart
From May 2023 to May 2024