Faroe Buys 12.5% Stake in Barents Sea Well
Faroe announced Thursday that it has acquired the interest in the Norwegian PL531 license, which contains the Darwin prospect, from Talisman Energy Norge. In return, Faroe has agreed to carry Talisman's retained 12.5-percent share of the base well cost.
Drilling operations in the license area are being conducted by Repsol Exploration Norge, which has a 20-percent interest. Other partners in the license include Marathon Oil Norge (10 percent), RWE Dea Norge (25 percent) and Concedo (20 percent).
The Darwin prospect is a high-impact wildcat exploration well located on the Veslemøy High in the frontier western part of the Barents Sea. The prospect is a large closure at multiple levels, which is contained within the PL531 license and located approximately 37 to 50 miles to the south west of the recent Statoil Skrugard and Havis oil discoveries. Multiple targets have been identified on 3D seismic. The first exploration well is expected to spud no sooner than December 2012.
In a statement accompanying the announcement, Faroe Chief Executive Graham Stewart commented:
"PL531 is an important new position in the promising western part of the Barents Sea – an area where a major breakthrough was achieved last year with the giant Skrugard oil discovery and which is expected to be highly competed for in the upcoming 22nd Licensing Round."
Analysts at Oriel Securities agreed. "The acquisition of this share in PL531 is an important step towards Faroe's ambition of building a strategic position in the Barents Sea," they said.
WHAT DO YOU THINK?
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.
Operates 8 Offshore Rigs
- Strong Upstream Performance from European Majors (Jul 28)
- PETRONAS, PetroVietnam Extend PM3CAA PSC in Malaysia-Vietnam Waters to 2027 (May 10)
- Repsol Significantly Scales Back Upstream Investment (Oct 15)
Company: Marathon Oil Company more info
Operates 4 Offshore Rigs
- Harvey's Wake Tempers Bullish Outlook for US Oil Output Growth (Sep 01)
- RoyalGate to Drill New Well in Equatorial Guinea's Block Z (Sep 25)
- ShaMaran Subsidiary to Contest TAQA Default Notice (Sep 21)
Company: RWE-DEA more info
- Sharp Fall In Applications For Norway's Arctic Oil Permits (Dec 05)
- Lundin Granted Drilling Permit in PL609 (Sep 10)
- Lundin Spuds Appraisal Well on Alta Discovery (Mar 25)
Company: Faroe Petroleum more info
- Independents Go Big in North Sea (Jan 03)
- Drilling of Well at Fogelberg Gas Discovery to Start in Feb/March -Centrica (Sep 01)
- Japan's JX To Sell North Sea Oil Field Stake To Faroe Petroleum (Jul 28)