Faroe, Enegi Pick up Licenses in 28th UK Round

Junior oil firms Faroe Petroleum and Enegi Oil are the latest companies to confirm that they had been awarded licenses in the UK's 28th Offshore Licensing Round.

The Department of Energy and Climate Change said Thursday that demand for new North Sea licenses had been strong and that the latest licensing round "looks like being one of the biggest rounds ever in the five decades since the first licensing round in 1964".

So far, 134 licenses covering 252 blocks have been offered in the 28th round, and a further group of applications is still to be decided after environmental assessments.

Friday saw Faroe report that it had been awarded two new exploration licenses. These included a 25-percent stake in the Fynn license (Blocks 15/11 and 15/16d), which is near the Faroe-operated Lowlander field, and the Perth field extension (Block 14/25), in which Faroe has been awarded a 34.62-percent interest.

Faroe Chief Executive Graham Stewart commented in a company statement:

"I am pleased to report these new license awards within the Central North Sea area of the UK. Securing these two promising licenses further extends our acreage position around the strategically important Perth/Dolphin/Lowlander development opportunity, in which Faroe holds a majority stake, and further diversifies our extensive exploration portfolio."

Meanwhile, Enegi reported that it has been offered a production license on Block 21/28b in the UK central North Sea. This block contains two known discoveries named Crinan and Dandy, which lie adjacent to the Fyne Project Area.

Enegi intends to use existing knowledge gained through investment in Fyne's Self-Installing Floating Tower (SIFT) solution to develop the discoveries. Preliminary work carried out by Enegi indicates that a combined 6 million barrels of oil could be recovered (P50 case) and that the development could involve a tie-in to Fyne. Upon final award, Enegi will hold a 50-percent working interest in the block.

Enegi CEO Alan Minty commented in a company statement:

"This license was identified and applied for specifically for the discoveries that it contains, their close proximity to our existing Fyne Project and the potential for them to be developed using our buoyant technologies. We believe that the expertise and knowledge that we have gained from the work we have completed on the Fyne and Phoenix Projects will also be significantly beneficial to us on advancing these assets."


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