Faroe Bags 3 Norwegian Licenses, Plans for Seismic Programs

Faroe Petroleum, the independent oil and gas company focusing principally on exploration in the Atlantic Margin, the North Sea and Norway, is pleased to announce that it has been awarded three new prospective licenses under the 2008 Norwegian APA Round, as announced by the Norwegian Ministry of Petroleum and Energy yesterday.

The following three awards, which have no well commitments, have beenmade:

Halten Terrace Area

Faroe has been awarded two licenses in the prolific Halten Terrace hydrocarbon province of the Norwegian Sea. These licenses offer excellent exploration and appraisal opportunities in an area, which is in active development. 

  • PL475 BS, Faroe Petroleum Interest: 30%. This license covers approximately 38 square kilometers and is an extension of our existing PL475 Santana license where a well has been committed and is scheduled to be drilled in 2010. This license extension contains an appraisal opportunity called the Maria Prospect. The work program involves reprocessing of 3D seismic data over the license. Partners are Revus Energy (operator), Concedo and Centrica.
  • PL510, Faroe Petroleum Interest: 20%. This license covers approximately 298 square kilometers and contains a large number of prospects ad leads located close to our existing, highly attractive acreage in the Halten Terrace area. The work program involves reprocessing of existing 3D seismic data to better define the distribution of reserves, prior to a decision being taken within two years on whether to drill an exploration well. Partners are Centrica (operator), E.ON Ruhrgas and North Energy.

Northern North Sea

Faroe has been awarded one license in the northern North Sea.This license offers an exciting exploration opportunity in thismature production area. 

  • PL507, Faroe Petroleum Interest: 30%. This license covers approximately 973 square kilometers and significant hydrocarbon potential has been identified within this license located close to our existing PL414 Kalvklumpen license. The work program involves reprocessing of existing seismic and a feasibility study to identify the potential for using electromagnetic (EM) data to further derisk the prospectivity, prior to a decision being taken within two years to acquire further 3D and/or EM seismic data. Partners are Revus Energy (operator), Spring Energy and Centrica.

"These new assets have only modest capital commitments and complement the Company's existing license portfolio in Norway, now totalling 23 Norwegian licenses, which have been awarded or acquired since our entry in 2006," said Graham Stewart, chief executive of Faroe. 

"All Norway exploration and appraisal expenditure benefits from the very favorable financing arrangements provided through the country's attractive tax regime under which the State pays 78% of costs. Faroe continues to prudently manage its ongoing capital program, which includes a significant number of wells in its fully funded drilling program over the coming two years. These include one appraisal well and two exploration wells to be drilled in Norway during the next three months."