Faroe Petroleum Awarded Addtl Five New Licenses in Norway

Faroe Petroleum announces that it has been awarded five further Norwegian licenses under the 2007 APA (Awards in Predefined Areas) Round, as announced by the Norwegian Ministry of Petroleum and Energy on Friday, February 8. The following licenses have been awarded to Faroe in two areas of the Norwegian Continental Shelf.

Faroe has been awarded a 30% participating interest in a license in the Grinda Graben between the Trestakk and Tyrihans fields, building on its existing position in the Norwegian Sea. Faroe Petroleum applied together with Revus (operator), Centrica and Concedo. The license contains the Santana and Carlos prospects, as well as seven further prospects and three further leads. Some of the prospects potentially form an extension of the existing hydrocarbon columns within the Trestakk Field. The work commitment involves reprocessing of the existing 3D seismic data over the entire area and the drilling of one firm well within three years.

Faroe has also been awarded a 30% participating interest with Centrica (operator) and Petro-Canada, in a license located between the Smørbukk and Morvin fields. This is the result of a continuing cooperation between these companies established for the APA 2006 Round. The license is located immediately to the south of the company's PL433 (Fogelberg) license, and contains the Middle Jurassic Cooper Prospect, a Lower Cretaceous gas discovery and an additional lead. The work commitment requires the acquisition of a new 3D seismic survey over the prospective area and a drill-or-drop decision within three years.

Again with Centrica (operator) and Petro-Canada, Faroe was awarded a 30% participating interest in a license located to the east of the Smørbukk Field, and Faroe's PL431 (T-Rex) and PL433 (Fogelberg) licenses. The license contains the Manilow Prospect, a potentially large downthrown Middle Jurassic structure, and the Upper Jurassic Whitesnake Prospect. The work commitment requires the acquisition of a new 3D seismic survey over the prospective area and a drill-or-drop decision within three years.

Faroe was also awarded a 30% participating interest with Centrica (operator) and Petro-Canada, adjacent to the company's existing license PL405, and contains an extension to the Butch Cassidy Prospect and the Bank Prospect. The work commitment is the same as the existing PL405 work program, with a drill-or-drop decision by February 2009.

Located to the west of license PL405, Faroe has been awarded a 30% participating interest with Centrica (operator) and Petro-Canada. This license contains the Upper Jurassic Etta Prospect and a further lead. The work commitment is similar to PL405, with a drill-or-drop decision to be taken after one year.

These five additional licenses in Norway, add significantly to assets secured through recent transactions with E.ON, Shell and GdF, bringing the total number of licenses held by Faroe in Norway to sixteen. The new licenses build on the key portfolio positions the company has established in the Norwegian Sea and Central Graben. These awards further confirm Faroe as a significant player in the Atlantic Margin and the North Sea regions.

Norway ranks as one of the world's largest exporters of oil and gas, it has a very high technical discovery rate and it holds very significant undiscovered resources. In addition, the Norwegian government offers a 78% rebate on all exploration expenditure, all of which combine to make Norway a very attractive country for the Company to pursue its strategic objective of creating substantial value.

"We are delighted with these five additional awards, establishing now for Faroe Petroleum a very significant portfolio of attractive exploration prospects in Norway," Graham Stewart, Faroe's CEO, commented. "Our highly experienced team have again demonstrated the company's ability to secure high quality assets, in a very competitive market and in partnership with world class operators. The company now looks forward to drilling its first two Norwegian exploration wells this year."

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