Faroe Petroleum Lands 2 New Offshore Faroese Licenses

Faroe Petroleum has been awarded two new prospective Faroese licenses in the Faroes 3rd Licensing Round announced by the Trade and Industry Minister yesterday.

The following awards, which have no well commitments, have been made:

Kulubokan (33 full and part blocks in quads 6201, 6202 & 6203) – Faroe 10%

This extensive license, which covers 5,300 square kilometers, contains a significant four-way dip closed structure. The co-venturers are Statoil Faeroyene AS ("Statoil") (50% and Operator), Dong Foroyar P/F (30%) and Atlantic Petroleum P/F (10%). The work program consists of a seismic program to identify a drilling location in advance of a drill or drop decision.

Rannva Extension (9 full and partial blocks in quads 6007 & 6008) – Faroe 100%

This license covers some 1,200 square kilometers and has been awarded 100% to the Company as Operator, and is located adjacent to Faroe's existing Rannva license (Faroe 100%) which contains the very substantial Rannva "A" lead on the crest of the Wyville-Thomson Ridge. A low cost seismic reprocessing program will be undertaken to further delineate the structure.

Graham Stewart, Chief Executive of Faroe Petroleum, commented, "This latest award secures us prime acreage in one of our core areas, for a very modest capital commitment, further strengthening our opportunity base going forward. Faroe continues to manage prudently its ongoing capital programme which includes a significant number of wells over the coming two years. Our strong cash position and growing UK gas production put the Company in a good financial position to capitalise on attractive new opportunities going forward."