Faroe Completes Trym Swap with DONG

Faroe Petroleum has provided a production update following the completion of the acquisition of interests in the producing Glitne and Enoch oil fields.

Trym Swap Completed

Faroe has completed the exchange with DONG E&P Norge AS of its 10% interest in the Trym development for:

  • a 9.3 percent interest in the producing Norwegian Glitne oil field;
  • a 1.86 percent interest in the producing Enoch field (located on the Norway/UK median line);
  • cash of NOK 78.3m (£8.3m) of which £2 million is by way of initial consideration and the balance the net proceeds of sale (pre‐tax) since the effective date of January 1, 2009; and
  • a further amount up to £2 million is payable by DONG to Faroe upon certain production targets being met by the Trym Field

Combined current gross production from the Glitne and Enoch fields over the year to date has averaged 12,000 boepd, corresponding to net production to Faroe of around 700 boepd. Both fields have the potential for increased production with further field investment.

Graham Stewart, Chief Executive of Faroe, commented, "We are pleased to announce the completion of our swap deal with DONG to add interests in the producing Glitne and Enoch oil fields in Norway. These three fields together with the Company's existing UK Schooner and Wissey gas fields have taken Faroe's overall production over the 2,000 boepd level.

"This is an exciting period for the Company, with increasing production contributing towards the cost of the Company's continuing exploration program. Following our two recent back to back significant discoveries in the west of Shetland area, Glenlivet and Tornado, we look forward to drilling a further five, high impact exploration and appraisal wells scheduled for the next 12 months, three in the Atlantic Margin and two in Norway."