Faroe Gives Up on West of Shetland License

Printer Friendly Version
Email this Page

Junior explorer Faroe Petroleum announced Friday that it was relinquishing its West of Shetland P1161 license. The company – which focuses on oil and gas prospects in the Atlantic Margin, North Sea and Norway – said that results of work on the Fulla prospect within the license area confirmed oil of relatively poor quality and a smaller-than-expected resource size.

After having drilled exploration well 206/5a-3 in the Fulla prospect, targeting the Clair and Whiting reservoir sands, extensive modeling was undertaken to establish the resource potential and assess a means of economically developing the Fulla discovery in conjunction with the 1980 Freya discovery. But Faroe said that no economically viable solution has been found to bring these discoveries to development and so it will relinquish the license.

Faroe Chief Executive Graham Stewart commented in a company statement:

"Faroe Petroleum adheres to a strict policy of protecting shareholder interests such that substantial development investments are only made where there is good potential for an attractive return, and unfortunately the P1161 licence does not satisfy our economic criteria.

"The high potential West of Shetlands area continues to be a core element of Faroe Petroleum's strategy. The company has considerable knowledge and experience in this important region, holding a large portfolio position there, including the Glenlivet and Tornado gas discoveries, which are progressing towards development."
 

 



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

Printer Friendly Version
Email this Page

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  SeaZip Wins Partnership Deal with Heer... (Jun 30)
 -  Technip Wins Topsides Contract with Ju... (Jun 30)
 -  Statoil Submits Amended Development Pl... (Jun 30)
 -  COSL Takes Delivery of Newbuild AHTS f... (Jun 29)
 -  Eni, KazMunayGas Enter Deal to Explore... (Jun 29)


Most Popular Articles

From the Career Center
Jobs that may interest you
VSS Sales Consultant
Expertise: Business Development|Sales & Marketing|Technical Sales
Location: Houston, TX
 
Treater House Carpenter and Pipe Insulator
Expertise: Roustabout
Location: Sidney, MT
 
Production Planner
Expertise: Process Management
Location: Katy, TX
 
search for more jobs

Brent Crude Oil : $63.59/BBL 2.54%
Light Crude Oil : $59.47/BBL 1.95%
Natural Gas : $2.83/MMBtu 0.71%
Updated in last 24 hours