Wissey Gas Field Drilled, Tested by Faroe

Faroe Petroleum reported that the Wissey production well operated by Tullow Oil UK Limited has been successfully drilled and tested and the GSF Labrador drilling rig has now been moved off location.

Flow rates on test exceeded expectation at 67 mmscfd (million standard cubic feet per day),12.56 mmscfd net to Faroe which corresponds to 2,200 barrels of oil equivalent (boe).

The well rate during the test was limited by the test equipment used.

The Wissey Gas Field is situated in UK Block 53/4D, approximately 10 kilometres east of the Tullow operated Horne and Wren platform from where the Wissey gas will be transported to the Thames host facility for separation and compression and from there on to the Bacton terminal.

First gas is expected in the second half of 2008 at a planned initial rate of 60 mmscfd. Based on the well test performance there is scope for initial production rates to now lie between 60 to 70 mmscfd, and the operator is investigating low cost means to maximise well rates.

The net reserves attributable to Faroe Petroleum in respect of Wissey are estimated to be 5.9 billion cubic feet of gas (approximately 1 million boe), with the potential for further upside.

Faroe's interest was acquired in September 2007 from First Oil Expro Limited which retains an 18.75 interest in the Field.

Graham Stewart, Chief Executive of Faroe Petroleum, said, "Faroe Petroleum's portfolio now encompasses a total of 43 licence interests including seven North Sea gas fields: Wissey, Schooner, Minke, Orca, Topaz, Breagh and Trym. By the end of 2008 it is expected that three gas fields (Wissey, Schooner and Minke) will be on stream and the remaining four will progress towards development and production over the next two years.

Faroe has been progressively building a diversified portfolio of non-operated North Sea production interests to contribute in a tax efficient manner to the costs of its significant exploration and appraisal programme. The Company has an extensive drilling programme of up to 26 wells expected to be drilled over the coming two years."