Novus spud11 November 2013
Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the UK and Norway, is pleased to announce the spudding of the Faroe‐operated Novus (PL645) well no. 6507/10‐2S in Norway.
The Novus prospect is located some nine kilometres to the south of the Statoil‐operated, producing Heidrun oil field in the prolific Halten Terrace hydrocarbon province of the Norwegian Sea. This is an area in which Faroe has built a strong position over several years, and has had considerable exploration success, including the significant Maria, Fogelberg and Rodriguez discoveries.
The main targets for the Novus well are the Jurassic reservoirs of the Garn, Ile, and Tilje formations in the Novus West and Novus East fault blocks. The drilling of a sidetrack into Novus East is contingent on the results in the main well bore, which will be targeting the Novus West horst block. The presence of AVO and amplitude anomalies at the different reservoir levels in Novus supports a stacked reservoir model and is analogous to the situation encountered in the nearby Smørbukk Field. The seismic tie to the nearby Heidrun is robust and suggests the presence of an analogous high quality reservoir. If successful, Novus offers near‐term development potential due to the close proximity of neighbouring infrastructure.
The drilling operations are being undertaken by Faroe as operator using the West Navigator drillship. The water depth is just under 300 metres and the well is planned to be drilled to a total depth of approximately 3,200 metres.
Following the farm‐down on promoted terms as announced in August 2013, Faroe Petroleum holds a retained 30% equity in the Novus licence; the other partners are Centrica Resources Norge AS, Skagen 44 AS, Spike Exploration Holdings AS and Concedo AS.
Graham Stewart, Chief Executive, Faroe Petroleum said:
“We are pleased to announce the spudding of the Faroe‐operated Novus exploration well on the prolific Norwegian Sea Halten Terrace, an area where we have a large strategic position and have had considerable success.
“This is the second well in our six well exploration programme; one of our most exciting to date which was recently kicked off with the Snilehornwell, where we announced a significant oil discovery this morning. With material equity stakes across the prolific North Sea, Norwegian Sea and Barents Sea in Norway, we have the real potential to generate considerable shareholder value.”
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
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 has extensive experience working with major and independent oil companies and its joint venture partners 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 60 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.
Faroe announced in January 2013 a significant discovery in the Rodriguez 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 well. In November Faroe 2013 announced the Snilehorn oil discovery in the Norwegian Sea in close proximity to the Hyme and Njord fields.
Norway operates a tax efficient system which encourages exploration, through reimbursement of 78% of costs in the subsequent year.
Faroe Petroleum is quoted on the AIM Market of London Stock Exchange plc with offices in Aberdeen, Stavanger, London and Torshavn. The Company is well financed from a strong cash reserve, excellent cash flow and largely undrawn borrowing base facility, with a fully funded drilling programme in 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.