Faroe Petroleum: Norwegian Oil Find is Non-Commercial

North Sea, Norway and Atlantic Margin-focused Faroe Petroleum announced Wednesday that oil has been discovered on both the T-Rex and Bolan exploration prospects in the Norwegian Sea (Faroe 30 percent), on Licence PL431 (blocks 6506/12, 6406/2&3 part), but not in commercial quantities.

The 6406/3-9 well, which is the first well to be drilled in the license, reached a total depth of 13,725 feet (4,183 meters) within shales of the Lange Formation.  The well targeted Lower Cretaceous sandstones of the Lange Formation (T-Rex) and Lysing Formation (Bolan).
T-Rex was the primary target and preliminary results based on extensive coring, wireline logs and pressure data have confirmed the presence of oil, but in a thinner than expected reservoir interval, and the well will therefore not be production tested.  Fluid samples were successfully recovered in T-Rex indicating oil of a quality in line with the fluids seen in the original discovery well 6506/11-2 (drilled by Statoil in 1991).
The Bolan prospect in the shallower Lysing Formation also encountered an oil column, within an inter-bedded sandstone package.  A similar extensive data gathering program was performed on the Bolan prospect as with T-Rex.
T-Rex and Bolan are situated next to the Statoil operated producing Smørbukk oil fields on the Halten Terrace in the Norwegian Sea.  Both the T-Rex and Bolan discoveries extend potentially over very large areas within licence PL431.  Additional evaluation is required in order to delineate the areal extent of the oil bearing layers, before any decisions in terms of a further appraisal programme can be made.
The drilling operation was undertaken by Maersk Oil as operator (70-percent interest), using the Transocean Winner (DW semisub) drilling rig, and the well is now being plugged and abandoned.
"We are pleased to announce the presence of oil on both the T-Rex and the Bolan prospects, but are disappointed the reservoir intervals were not as thick as we had hoped for at this target location," said Faroe Petroleum Chief Executive Graham Stewart.
"The well does however provide very important new data and information which will allow further evaluation and de-risking of this exciting exploration province in which Faroe has a number of licences.  This was Faroe's first well targeting Cretaceous reservoirs on the Halten Terrace, where we made the significant Maria discovery in 2010.  In addition to our evaluation of the remaining potential on Licence PL431, we will apply these new data directly to calibrate and identify the follow-up potential of several Cretaceous potential prospects we have in this area."
Stewart added that as Faroe continues with its multi-well drilling program, the firm is looking forward to the next exploration wells scheduled for the second quarter of 2012 being North Uist, west of the Shetlands (Faroe 6.25 percent), Clapton, in Norway (Faroe 40 percent and operator) and Cooper in Norway (Faroe 30 percent).

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