Faroe Wins Irish Licensing Options
Junior explorer Faroe Petroleum reported Monday that it has been awarded three new licensing options covering the Celtic Sea, offshore southern Ireland, by the country's Ministry for Communications, Energy and Natural Resources.
The Celtic Sea is home to Providence Resources' Barryroe oil discovery, which contains an estimated 311 million barrels of recoverable oil.
The deal involves Faroe conducting a low cost work program that will see the reprocessing and interpretation of 2D seismic data for each license and the preparation of supporting geological studies.
The licensing options – LO 14/1, LO 14/2 and LO 14.3 – are located in the southern margin of the North Celtic Sea basin in shallow water depths of up to 360 feet and covering an area of 1285 square miles. They contain a largely unexplored Triassic play, similar to that of the Wytch Farm oilfield that is located onshore UK.
Faroe said that an initial interpretation of existing 2D seismic data has revealed the presence of a number of large structural traps within the licensing option areas. The firm said it will deploy recent advances in modern seismic reprocessing techniques to substantially improve seismic imaging, which it has already had success with in Norway and the UK.
Faroe Chief Executive Graham Stewart commented in a company statement:
"We are pleased to have won these licensing options offshore Ireland, where we see attractive optionality. We now have the opportunity at low cost to screen potentially significant exploration targets using our knowledge and experience in seismic reprocessing and interpretation. This Triassic play differs from the traditional targets in the Celtic Sea and offers significant upside potential.
"Faroe has had considerable exploration success and aims to transfer these skills and knowledge to the Celtic Sea area of Ireland. We very much look forward to working with the Irish Authorities as we execute the work program over the next two years."
Oil sector analysts at Westhouse Securities commented that Faroe is diversifying its portfolio not too far from its core operations in the UK and Norwegian continental shelves. "These Licencing Options give the company optionality and may evolve into interesting drilling targets in the future," the bank 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.
- ITEM Club: More Jobs Losses Expected in NE Scotland due to Oil Slump
- Shell Q&A: What Makes an Ideal Employer in Oil, Gas?
- Shell Takes First Place in Rigzone's Inaugural Ideal Employer Survey
- UK Government 'Must Recommit' to Oil, Gas Sector in Autumn Statement
- UK Government Gives Go-Ahead for Fracking in NW England
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- Analyst Says USA Influence on Middle East Seems to be Fading
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally