26 January 2010
Faroe Petroleum plc ("Faroe Petroleum", the "Company")
Faroe Petroleum awarded new exploration licence in Norway and prequalifies as
operator
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 been
awarded a new prospective licence under the 2009 Norwegian APA Round and has
been prequalified as an operator for the Norwegian Continental Shelf.
Licence PL477B, 'Zappa' (Faroe petroleum 30%, Centrica (Operator) 40% and
Petro-Canada 30%)
Faroe Petroleum has been awarded a 30% interest in PL477B. Significant
hydrocarbon potential has been identified within this Norwegian Sea licence,
which is located adjacent to the Company's existing PL477 Cooper licence. The
work programme and licence period for the new award is identical to that of our
licence PL477, with a drill-or-drop decision to be taken in 2011.
Norwegian operatorship prequalification
Faroe has prequalified as an operator on the Norwegian Continental Shelf, which
will allow the Company to pursue operated opportunities and retain higher equity
levels in assets acquired through both upcoming licensing rounds and
acquisitions.
Faroe Petroleum entered Norway in 2006 with the clear objective of building a
significant, high quality exploration portfolio to complement the Company's
strategic Atlantic Margin position. Norway is recognised as having vast
untapped oil and gas potential, and the Company has built up a considerable
portfolio to explore this, totaling 20 licences. This has been achieved through
focusing the skills and considerable experience of our established Norway team,
to carefully select the best possible licences with the greatest potential.
Graham Stewart, Chief Executive of Faroe Petroleum plc, commented:
"Faroe Petroleum is very pleased to have been awarded this prospective licence
applied for in the 2009 Norwegian APA licensing round. This new asset
complements the Company's existing licence portfolio in Norway, and we are
currently considering applying for licences in the upcoming 21(st) Licensing
Round in Norway, in which some very exciting new licences are expected to be
offered".
"As we continue with our scheduled, fully-funded drilling programme, we now look
forward to five high impact wells in 2010, the first of which is expected to be
the Fogelberg well in Norway next month."
"The prequalification as operator is a recognition by the Norwegian Authorities
of Faroe Petroleum's management systems and competence. This is an important
step and we believe it will open new opportunities for the company in Norway in
the coming years."
Faroe Petroleum Tel: +44 1224 650 920
Graham Stewart
Panmure Gordon Tel: +44 20 7459 3600
Dominic Morley/ Ashton Clanfield
Oriel Securities Tel: +44 20 7710 7600
Michael Shaw/Neil Langford
Financial Dynamics Tel: +44 20 7831 3113
Billy Clegg/Edward Westropp
Andrew Roberts, who is a Geophysicist (BSc. Joint Honours in Physics and
Chemistry from Manchester university), Exploration Manager of Faroe Petroleum
Norge AS and who has been involved in the energy industry for more than 25
years, has read and approved the technical disclosure in this regulatory
announcement.
Notes to Editors
The Company is actively building a balanced portfolio of exploration, appraisal
and production properties, with significant stakes and an active work programme.
Faroe Petroleum has through successive licence applications and acquisitions
built a substantial portfolio of exploration, appraisal, development and
production assets across the Atlantic Margin, the UK and Norwegian North Sea and
the Norwegian Sea. The licence portfolio provides considerable spread of risk
and reward, encompassing over 40 licences with seven licences West of Shetlands,
six licences offshore the Faroe Islands, nine licences in the Southern gas basin
and 20 licences in the Norwegian North Sea, Norwegian Sea and Barents Sea. In
addition Faroe has interests in five producing oil and gas fields in the UK and
Norway. Faroe Petroleum's joint venture partners include BP, Chevron,
ConocoPhillips, DONG, DSM, Eni, E.ON Ruhrgas, GDF, OMV, RWE Dea, Shell and
Statoil all of which have an outstanding track record in oil and gas exploration
and development.
Faroe Petroleum is quoted on the AIM Market of the London Stock Exchange with
offices in Aberdeen, Stavanger and Torshavn. The Company has a highly
experienced team of professionals focused on creating exceptional value for its
shareholders.
[HUG#1376976]