The news of the spudding of the Kalvklumpen exploration well in the Norwegian Sea heralds a busy 2012 for Faroe Petroleum, which owns interests in four other prospects in the region where wells are due to spud this year.
The Kalvklumpen well, located east of the abandoned Frøy Field and Total's Atla field that was discovered in 2010, is targeting two zones: Paleocene and Jurrasic. These zones hold an estimated resource of up to 170 million barrels of oil equivalent (MMboe), most likely oil and gas condensate. Faroe holds a 20% stake in Kalvklumpen and the resource holds an estimated 20 MMboe net to the firm, according to Leila Reddy – an analyst at London-based investment bank Panmure Gordon.
"The upside associated with the Jurassic target adds a further 10 MMboe," added Reddy, in a research note on Faroe published this morning. "Recent discoveries in the area provide confidence to the license holders."
The drilling operation will be undertaken by Det Norske Oljeselskap as operator (40% participating interest), using the drilling rig Songa Delta (mid-water semisub). The operation is expected to last for around one month.
Meanwhile, Reddy said that she expected 2012 to be "a busy year for Faroe" with further new wells planned at North Uist (in UK waters in the west of the Shetland Islands) and at Clapton, Cooper and Rodriguez (all in Norwegian waters). At Clapton, where Faroe is the operator with a 40% interest, the firm is targeting a resource that has been estimated by independent consultants at 26 MMboe net to Faroe. At the North Uist (6.3% interest), Cooper (30%) and Rodriguez (30%) prospects, Faroe is targeting net resources estimated at 14MMboe, 23 MMboe and 46 MMboe respectively.
Faroe's chief executive Graham Stewart agreed that the firm will be very active in 2012.
"In terms of number of wells it is the busiest year for us so far," Stewart told Rigzone Wednesday morning.
Stewart mentioned that the firm is also awaiting the results from an exploration well at its T-Rex prospect that is situated next to Statoil's Smørbukk fields on the Halten Terrace in the Norwegian Sea. The T-Rex well, operated by Maersk Oil (which has a 70% interest), commenced at the start of November.
"We expect to make some kind of announcement about that later this month," added Stewart.
Aberdeen-based Fareo, which also has offices in the Faroe Islands and in Norway, funds its exploration operations itself through revenues from 10 producing fields – 80% of which are in Norwegian waters.
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