Faroe Petroleum to Farm-in to Brugdan Well

Faroe Petroleum will participate in the Brugdan well which is to be drilled during summer 2006 on License 006 in the Faroes.

As license-holder in four further Faroese licenses, Faroe Petroleum will gain access to significant new geological data from this first sub-basalt well to be drilled offshore the Faroes. Faroe Petroleum has secured the opportunity to participate on favorable terms, and will hold a 4.04 percent equity stake in the license.

The existing participants in License 006 are Statoil Faeroyene A/S (operator), Shell (Enterprise Oil Exploration Limited) and Dong Foroyar P/F.

Graham Stewart, Chief Executive of Faroe Petroleum, said:
"We are very pleased to be participating in the Brugdan well project. It will give us high impact exposure at low cost and will significantly help us to unlock the regional geology to the benefit of our other higher equity Faroes licenses."