Faroe Picks Up 2 New Exploration Licenses in UK North Sea

Faroe Petroleum has been awarded two new exploration licences, one west of Shetland and one in the Southern Gas basin, under the UK 25th Licensing Round, the results of which were announced by the Minister of the Department of Energy and Climate Change yesterday.

The following awards have been made jointly to Faroe Petroleum and its industry partners:

Defiant (Block 208/21) – Faroe Petroleum 30%

This West of Shetland Frontier Licence, which has been offered to Hurricane Exploration plc (70% and Operator) and Faroe (30%), is situated on the Corona Ridge play, to the East of the Glenlivet prospect (Faroe 10% equity). The license work program comprises the purchase and reprocessing of 2D and 3D seismic data and additional geotechnical studies, prior to making a drill or drop decision.

Narwhal (Block 44/29c) - Faroe Petroleum 20%

This Southern Gas Basin Traditional License has been awarded to the joint venture (GDF SUEZ E&P UK Ltd (40% and operator), RWE DEA SNS Limited (40%) and Faroe (20%)). The Narwhal lead sits to the West of Orca (Faroe equity 5.89%) and the license work program requires 3D seismic reprocessing and other geotechnical studies ahead of a drill or drop decision.

Additionally, a further application made by Faroe in the same licensing round remains subject to appropriate environmental assessments of the potential effects of any work program on certain Special Areas of Conservation / Special Protection Areas. There will be a consultation on the recommendations of the environmental assessments before any decision is made, on whether to make an associated license award.

Graham Stewart, Chief Executive of Faroe Petroleum, commented, "These license awards, in two of our core areas, are a welcome, low cost means of adding to our prospect inventory. Faroe Petroleum has built a substantial license portfolio, much of which has been secured through licensing rounds. Our portfolio is progressing well as we continue our significant, fully-funded drilling program of over 20 exploration and appraisal wells over the coming two years, including four wells in the next three months."