Butch South West Well Spuds

Northern Europe-focused junior explorer Faroe Petroleum announced Monday that drilling has begun on the Centrica-operated Butch South West exploration well in the Norwegian zone of the North Sea.

The Butch South West well (well 8/10/-6S) is located in approximately 213 feet water depth and is close to existing infrastructure, with the giant Ula field approximately four miles to the northwest. It is located in a separate segment to the Butch East and Butch Main wells; the Butch Main oil discovery was made in late 2011 and contains a light crude oil in a high-quality reservoir.

Centrica is currently working on a development plan for the Butch Main discovery in parallel with drilling the Butch South West well. Faroe said that if Butch South West is successful the development has the potential to become a standalone design with its own dedicated facility.

Faroe Chief Executive Graham Stewart commented in a company statement:

"We are pleased to announce the spudding of the Butch South West exploration well which, if successful, offers the potential to add substantially to the volumes and value of the Butch field, as the adjacent Butch Main field is already on track for near-term development.
"In the near term we also look forward to reporting the results from exploration drilling on the Bue prospect (Faroe 25 percent) in the Norwegian Sea in close proximity to the recently-announced significant Pil oil and gas discovery."

Faroe holds a 15-percent stake in the Butch license, with operator Centrica holding 40 percent, Suncor Norge holding 30 percent and Tullow Oil Norge also holding 15 percent. The Maersk Giant (350' ILC) rig is being used to drill Butch South West.


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