Faroe Petroleum plc, the independent oil and gas company focusing principally on exploration, appraisal and undeveloped field opportunities in the Atlantic Margin, the North Sea and Norway, is pleased to announce that it has agreed to farm-in for a 10% interest in UK Block 22/11b from Bow Valley Petroleum (UK) Limited ('Bow Valley') by participating in the drilling of well 22/11b-13. Block 22/11b, awarded to Bow Valley in 2007, in the 24th UK Licensing Round, contains the significant Fulmar prospect, which offers a good fit with Faroe's strategy to participate in high impact exploration wells in prolific areas. Drilling commenced on 19th August 2008.
Highlights
- Significant exploration well, drilling under way
- Close proximity and similar geology to several Fulmar reservoir discoveries
- Shallow water and close to infrastructure
The 22/11b-13 well will target an Upper Jurassic Fulmar sand prospect, a play which has been recognized on the flanks of the Central Graben, where good quality sands have been deposited after erosion from the neighbouring high areas. The prospect lies in close proximity and on trend with a number of discoveries with good quality Fulmar reservoir, including the Wood (Block 22/18), Howe (Block 22/12), Huntington (Block 22/14), and most recently Talismans Cayley. Considerable further upside has also been identified on the licence.
The well, located in 90 metres water depth, is being drilled in an area close to significant oil infrastructure, approximately 10 kilometres from the Nelson field and 18 kilometres from the Montrose field. The Transocean Prospect semi-submersible drilling rig will be employed under a drilling management arrangement with AGR.
Commenting on the news, Graham Stewart, Chief Executive said:
"This is an attractive prospect with significant resource potential and moderate risk, offering a good fit with Faroe's strategy of participating in a very active drilling programme in its core areas of the North Sea, Norway and the Atlantic Margin.
Faroe has commenced a significant, fully funded drilling campaign of over 20 wells in two years. In addition to Fulmar L, the Company is at present drilling simultaneously three further wells: the Topaz gas field appraisal well; the East Breagh exploration well and the Marsvin exploration well. The West Breagh appraisal well is programmed to start drilling after East Breagh, later in September and three further wells are scheduled to be drilled later in the year in Norway: the Hyme and Grosso exploration wells and the South East Tor oil appraisal well. We look forward to updating the market on progress."
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