Finance & Investing
News Services
Newsletters
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy
pledge.


advertisement

Faroe Buys North Sea Assets from Tullow

change text size

Faroe Petroleum has boosted its interests in the Ketch and Schooner gas fields in the UK North Sea to 60-percent each after a transaction with Tullow Oil, both companies reported Wednesday.

Faroe said that the deal sees it acquire Tullow's 60-percent interest in the Ketch field and a 53.1-percent stake in the Schooner unit, in which the junior oil firm already had a 6.9-percent interest. Faroe will also gain operator status over the fields.

Net production pertaining to Faroe from the two fields is estimated at between 3,000 and 4,000 barrels of oil equivalent per day – which is expected to increase the firm's average economic production in 2014 to between 7,000 and 10,000 barrels of oil equivalent per day. Faroe's proved and probable reserves will increase by an estimated 5.9 million barrels of oil equivalent to 33.1 million barrels.

Faroe Chief Executive Graham Stewart commented in a company statement:

"We are very pleased to announce this acquisition, funded entirely from existing resources and debt facilities, which significantly boosts and diversifies our oil and gas cash flow generation.  
 
"Ketch and Schooner are good quality producing fields, well known to the company as they are located in one of our core areas and offer significant upside potential in the form of increasing reserves, production and field life. The transaction is highly tax efficient for us, providing shelter for both past and future tax losses in the UK and is in line with our strategy to grow our production portfolio to continue the efficient funding of Faroe's busy and highly successful exploration program.
 
"This is our first move into operating producing assets. This transaction gives us the opportunity to add value to these fields over time, and both assets offer numerous possibilities and options to grow. Nevertheless, our clear strategic focus on exploration will remain unchanged going forward.
 
"Elsewhere, drilling activities continue in our exploration and appraisal program with the drilling of the Pil side-track (Faroe 25 percent) in the Norwegian Sea, following the significant Pil discovery and associated successful production test.  In addition drilling continues at the Butch East exploration well (Faroe 15 percent), located adjacent to the Butch Main discovery (Faroe 15 percent) in the Norwegian North Sea, with results expected in the coming weeks."



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

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

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  Keppel FELS Clinches $227M Contract fr... (Sep 17)
 -  Frontier Signs $20M Deal for UMW Naga ... (Sep 17)
 -  Sound Prioritizes Resources towards Ba... (Sep 17)
 -  Aqualis Wins Rig-Moving Deal with Saud... (Sep 17)
 -  Northern Drills First Wells in Current... (Sep 17)
Most Popular Articles
From the Career Center
Jobs that may interest you
General Manager - Business Unit (2 Openings)
Expertise: Executive, Operations Manager
Location: Bloomsfield, NM and Andrews, TX
 
Senior Estimator
Expertise: Budget / Cost Control, Cost Engineer, Project Management
Location: Claremont, CA
 
Reservoir Engineering Manager
Expertise: E&P Asset Manager, Petroleum Engineering, Reservoir Engineering
Location: Anchorage, AK
 
search for more jobs