Menu
Press Releases

If you would like to be alerted when a new Report or Presentation is added to this site, please register with the alert service.

APA 2013 – 10 new exploration licences awarded in Norway

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, is pleased to announce that it has been awarded 10 new prospective exploration licences, including two operatorships, under the 2013 Norwegian APA (Awards in Pre‐defined Areas) Licence Round on the Norwegian Continental Shelf. These 10 licences equate to the largest number awarded in this APA round, equal with Centrica and Statoil.

Northern North Sea
The Company has been awarded one licence in the northern North Sea. This licence offers exciting exploration opportunities in an area with established nearby production infrastructure in the Brage Field:

North Sea
The Company has been awarded four licences in the North Sea, where the Company already holds a number of licences, including the Butch oil field, discovered in 2011:

Norwegian Sea
The Company has been awarded one new licence in a very exciting immature exploration area east of the giant Ormen Lange field in the North Sea.

Norwegian Sea, Halten Terrace Area
The Company has been awarded four new licences in the prolific Halten Terrace hydrocarbon province of the Norwegian Sea. The main focus for all of these licences is the further exploration of the Cretaceous Lange Formation sandstones, as discovered in the Solberg/Rodriguez discovery, which Faroe announced in January 2013:

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

“We are delighted with these licence awards, which add considerable new potential to our forward drilling programme. Faroe has again been very successful in its licence application strategy, and this award is the largest to date for the Company, and indeed in the entire APA round, alongside Statoil and Centrica. This demonstrates the strength of our reputation in Norway and further positions us as having one of the largest licence portfolios on the Norwegian Continental Shelf.

“Faroe Petroleum has built a strong and sustainable exploration company, with Norway at centre stage. Our significant Norwegian portfolio has a diversified mix of both near‐field and frontier opportunities, from which we can high‐grade the best prospects for drilling. The combined advantages of Norway’s progressive and highly successful fiscal incentivisation for exploration and our own cash generating production ensure we can continue to make Norway a key part of our value creating business strategy.”

For further information please contact:

Faroe Petroleum plc
Graham Stewart, CEO
Tel: +44 1224 650 920

Panmure Gordon (UK) Limited
Callum Stewart/Adam James
Tel: +44 20 7886 2500

Oriel Securities Limited
Michael Shaw/Ashton Clanfield
Tel: +44 20 7710 7600

FTI Consulting
Edward Westropp/Georgia Mann
Tel: +44 20 7831 3113

Jan‐Tore Paulsen, Exploration Manager Norway of Faroe Petroleum and a Geophysicist (MSc. in Geophysics from University of Bergen), who has been involved in the energy industry for 15 years, has read and approved the technical disclosure in this regulatory announcement

Notes to Editors
The Company has, through successive licence applications and acquisitions, built a substantial, diversified portfolio of exploration, appraisal, development and production assets across the Atlantic margin, the UK and Norwegian North Sea, Norwegian Sea, Barents Sea and offshore Iceland. Faroe Petroleum benefits from a good reputation and has extensive experience working with major and independent oil companies, all relevant authorities and its joint venture partners, which include BP, Centrica, DONG, E.ON Ruhrgas, GDF, OMV, Repsol, RWE Dea, Statoil and Wintershall.

The Company’s licence portfolio provides considerable spread of risk and reward, encompassing some 70 licences. Faroe has a very active drilling programme ahead and it currently has interests in four principal producing oil and gas fields in the UK and Norway, including interests in the Blane oil field in the UK, and interests in the producing Njord, Brage and Ringhorne East fields in Norway, which collectively produced on average 7,200 boepd (economic production) in 2012. Full year production for 2013 is estimated to be between 5,500 boped and 6,500 boped, accounting for the temporary shut in of the Njord facilities.

In January 2013 Faroe announced a significant discovery in the Rodriguez/Solberg prospect located on the Halten Terrace, in the Norwegian Sea. The discovery was made in the Lower Cretaceous, and led to the decision to fast‐track drilling of the forthcoming Solberg appraisal well. In November 2013 Faroe announced the Snilehorn oil discovery, with resource potential stated as between 57 and 101 mmboe gross, in the Norwegian Sea in close proximity to the Hyme and Njord fields.

Norway operates a tax efficient system which incentivises exploration, through reimbursement of 78% of costs in the subsequent year. Faroe has in place a revolving credit facility with a group of banks to fund the majority of the 78% reimbursement on a cash flow basis, which provides excellent capital efficiency to the Company.

Faroe Petroleum is quoted on the AIM Market of London Stock Exchange plc with offices in Aberdeen, Stavanger, London and Torshavn. The Company is funded from cash reserves and cash flow, and has access to an undrawn $250m borrowing base facility, with a fully funded drilling programme through 2014. Faroe has highly experienced technical teams who are leaders in the areas of seismic and geological interpretation, reservoir engineering and field development, focused on creating exceptional value for its shareholders.