Faroe Petroleum Awarded New License in Norwegian Barents Sea

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and undeveloped field opportunities in the Atlantic margin, the North Sea and Norway, announced the 20th Norwegian License Round award of its first license in the southern part of the Norwegian Barents Sea, as granted by the Norwegian Ministry of Petroleum and Energy.

The new license covers approximately 900 square kilometers and is located within blocks 7224/7, 8 and 11. Considerable prospectivity has been identified in several stratigraphic levels ranging from the Upper Triassic through to the Permian. The license contains a large structural feature called the Samson Dome. The crest of this dome was drilled in 1988 by well 7224/7-1, which encountered hydrocarbon shows. The Zealand Prospect is a structural/stratigraphic trap located down-dip from this well, on the flank of the dome, where a wedge of clinoforms has been identified contained within a large structural closure. The license area is adjacent to the recent discoveries in wells 7222/6-1, 7222/11-1 and 7224/6-1, all operated by Statoil.

The new license partners are Faroe Petroleum (20%), together with BG (40% and operator), Statoil (20%) and Wintershall (20%). The license work program involves the acquisition of 3D seismic data to cover the licence, with a decision to drill to be taken within 3 years.

Graham Stewart, Chief Executive of Faroe, commented, "Our team have been working to identify exploration opportunities in the high potential Barents Sea for some time, and have considerable experience in the area. Faroe Petroleum is therefore delighted to have been awarded this prestigious license in the highly competitive 20th Norwegian Licensing Round. We are very pleased to be working with operator BG, who have an excellent track record in exploration, as do licence partners Statoil and Wintershall, both of whom we have existing partnerships with. The Barents Sea is an area which complements our strategic position in the Atlantic margin area of West of Shetlands and the Faroe Islands and secures further highly prospective exploration acreage for the Company. We have built a large portfolio of high quality licenses in Norway, mainly through license rounds, and this latest award demonstrates clearly our high level of technical competence and a continuing close relationship with the Major oil companies."