Faroe Completes Acquisition of Schooner and Ketch Fields

Tullow Oil has completed the sale of majority stakes in the Schooner and Ketch fields in the UK zone of the southern North Sea to Faroe Petroleum, the two companies reported Friday.

Faroe is now the operator of Schooner and Ketch, with 53.1-percent and 60-percent stakes respectively in the fields. The company said that it has evaluated the fields' remaining proved and probable reserves at approximately 5.9 million barrels of oil equivalent net to Faroe and that average economic production net to the company had been running at 3,700 boepd.

Faroe Chief Executive Graham Stewart commented in a company statement:

"We are very pleased to announce the completion of this acquisition, which broadens our production base further and both boosts and diversifies our oil and gas production portfolio.
"Schooner and Ketch are good quality producing fields, well known to the company and which offer upside potential in the form of increasing reserves, production and field life.  The transaction is tax efficient for us, providing shelter for both past and future tax losses in the UK and is in line with our strategy to grow our production portfolio to continue the efficient funding of Faroe's ongoing exploration and appraisal programme." 

Tullow said that it will continue to market its remaining southern North Sea gas assets. The company had previously agreed to sell operated and non-operated L12/L15 block interests and non-operated Q4 and Q5 block interests in the Netherlands zone of the North Sea to AU Energy – a subsidiary of Mercuria Energy Group – for $81.1 million in September.



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