Faroe Petroleum Enters Norwegian Oil & Gas Market
Faroe Petroleum, the AIM quoted oil and gas company focusing on portfolio exploration, appraisal and undeveloped field opportunities in the Atlantic Margin and the North Sea, has entered into the Norwegian oil and gas market. The Company has secured a first-rate team of highly experienced professionals, and has opened offices in Stavanger, Norway.
The Company's decision to enter Norway relates principally to the country's vast potential for finding new resources, its outstanding exploration success rate and the fact that it remains an under-explored province. Norway has also recently implemented a very favorable tax structure designed to incentivise exploration.
The new Norway team, all of whom have worked together for several years on the Norwegian Continental Shelf, has an outstanding track record built up with several oil companies in Norway, including Enterprise, Paladin, Shell and Statoil. The team was previously responsible for creating a high value portfolio of exploration, development and production assets in Norway, and gives Faroe Petroleum an excellent opportunity to expand rapidly its portfolio into Norway.
Heading up our Norway operation as Country Manager is Mr. Helge Hammer. Mr. Hammer, who has 19 years of experience in the international upstream oil and gas industry including 14 years with Shell, joins Faroe Petroleum from Paladin Resources where he was Deputy Managing Director, Norway. Mr Andrew Roberts has been appointed Exploration Manager for Norway, also joining us from Paladin Resources. Mr. Roberts is a highly regarded geophysicist with a specialisation in 4D seismic interpretation. Mr. Hammer and Mr. Roberts will lead our Norway team, which will work closely with our UK and Faroes sub-surface and commercial teams in building a strong and complimentary business portfolio in Norway.
Key Norway Highlights
- Norway ranks as the world's third largest exporter of oil and gas
- Oil production (including Natural Gas Liquids and condensate) stands at approximately 3 million barrels per day and net gas production exceeds 2.5 trillion cubic feet per year
- The first exploration well was drilled in 1966 and only 1,063 exploration wells have been drilled, proving 60 billion barrels of oil equivalent (boe) of recoverable resources
- The average technical discovery rate is approximately 40%
- The mean estimate for the undiscovered resources in Norway is 21 billion boe of recoverable resources, equivalent to the quantity that has been produced to date
Graham Stewart, chief executive of Faroe Petroleum commented:
"Our decision to enter Norway is a natural progression for Faroe Petroleum. The combination of our excellent knowledge of Norway and our good relationships with many significant Norway-focused oil companies greatly enhances our potential to build a strong position in the country. We are particularly pleased to have attracted such a competent and established Norway based team, with an exceptional reputation and track record. This achievement demonstrates both the new team's belief in our business model and our commitment to extend our activities onto the Norwegian Continental Shelf. Mr. Hammer's considerable experience in the Norwegian oil and gas sector coupled with his leadership skills will be instrumental as we extend our strategy of portfolio exploration and appraisal into Norway.
"As our planned drilling activity draws near, our new business in Norway represents an excellent opportunity to further grow and balance our portfolio, and is an important step forward in our goal to create significant value for shareholders."
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