Independent oil and gas company Faroe Petroleum has announced plans to increase its net capital expenditure for production assets in 2017.
The energy firm, which focuses on opportunities within Norway and the UK, expects net CAPEX for production assets to hit $11 million in 2016 and $61.5 million next year. The Tambar project is in line to receive the majority of these funds, with $25 million scheduled to be spent on the asset in 2017.
Faroe’s net production to September 2016 stands at 18,632 barrels of oil equivalent per day. The company previously revised production guidance for the year to 31 December 2016, including the impact of fields acquired from Dong E&P Norge AS, to between 16,000-18,000 boepd, which remains unchanged.
Following Faroe’s latest news, market reaction has been positive, according to a brief research note sent to Rigzone from GMP FirstEnergy. GMP commented that Faroe’s production in September was strong and outlined that the independent energy firm has identified multiple development projects to work on during next year.
On October 18, Faroe announced that an oil and gas discovery had been made at the Njord North Flank in the Norwegian Sea.
The NF-2 exploration well 6407/7-9 S, which was drilled to a total depth of 13,467 feet below sea level, encountered 334 feet of gross oil-bearing reservoir in Middle and Lower Jurassic sandstones of the Ile and 515 feet of gross gas condensate-bearing column in Lower Jurassic sandstones in the Tilje formation.
A preliminary estimate of the size of the NF-2 discovery is between 1.3 and 18.9 million barrels of oil equivalent, with the NF-3 side track between 0.6 and 9.4 mmboe.
“We are pleased to announce this oil and gas discovery on the Njord North Flank, Faroe’s second discovery of the year, following our significant Brasse oil and gas find announced in summer, which is also located very close to infrastructure,” said Faroe Chief Executive Graham Stewart in a company statement made yesterday.
“We look forward to Faroe’s continuing exploration program. Next up is the high impact exploration well on the Dazzler prospect (Faroe 20 percent) located in the Barents Sea. Dazzler will be operated by Eni and is scheduled to spud around year end,” he added.
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