having screwed up Northe sea oil last year and caused companies to pull the plug and completely re plan their long term stratergy its only taken him a year to think about doing something about it now he's realised having screwed it up with tax increase and mistrust, it actually produced less revenue. Plonker of the first order
http://www.iii.co.uk/articles/27282/wednesdays-aim-news-oil-and-gas Faroe Petroleum (FPM) has discovered oil, "but not in commercial quantities", on the T-Rex and Bolan exploration prospects in the Norwegian Sea. The company will not carry out production testing. Both prospects are situated next to the Statoil-operated producing Smørbukk oil fields. While chief executive Graham Stewart said that he was "disappointed" with the results, he pointed out that the well did provide "very important new data and information" which would allow further evaluation and de-risking of the exploration province in which Faroe has a number of licences. The next exploration wells scheduled for the second quarter of 2012 are North Uist (where Faroe has a 6.25% interest), Clapton (where Faroe is operator with a 40% interest) and Cooper (where Faroe has a 30% interest). Broker FoxDavies said today's update was being viewed "as a step further towards the de-risking of the block resources", while Leila Reddy, analyst at Panmure Gordon, said that the company continued to offer "an attractive risk-reward proposition", given its portfolio of exploration assets complemented by producing asset and a fully-funded drilling programme. Panmure had a 'buy' recommendation on the stock. Sam Wahab, analyst at Seymour Pierce, warned that following the disappointing result at Kalvklumpen last month, this would be viewed as another setback in the company's 2012 drilling campaign, and decreased his price target on the company to 291p. However, he maintained his 'buy' recommendation, pointing out that Faroe had enjoyed a 67% success rate in 2011, far exceeding the industry average. "The company has a further four wells to drill this year targeting 113 million barrels of oil equivalent, which if successful, could represent material upside for investors," he added.
NOTE: There is more to FPM than the drilling. DYOR and GL
Good entry/top up as the sp settles. See the program for the exciting drilling campaign commencing full steam ahead. T-Rex will have given them very important data, a prize in itself. The drill looks well executed without problems, delivered just outside the time window and that only because of weather delay. Check the next drills, as a good result on T-Rex would have taken the sp well above the 200p IMO. With better luck on the next drill that will happen. Also Clapton looking very attractive, while West of Shetlands is 'history being made' ;-) DYOR and GL p.s. This a an upportunity!
Graham Stewart, Chief Executive of Faroe Petroleum, commented:
"We are pleased to announce the presence of oil on both the T-Rex and the Bolan prospects, but are disappointed the reservoir intervals were not as thick as we had hoped for at this target location. The well does however provide very important new data and information which will allow further evaluation and de-risking of this exciting exploration province in which Faroe has a number of licences. This was Faroe's first well targeting Cretaceous reservoirs on the Halten Terrace, where we made the significant Maria discovery in 2010. In addition to our evaluation of the remaining potential on Licence PL431, we will apply these new data directly to calibrate and identify the follow-up potential of several Cretaceous potential prospects we have in this area."
"As we continue with our significant multi-well drilling programme, we also look forward to the next exploration wells scheduled for the second quarter of 2012 being North Uist, west of the Shetlands (Faroe 6.25%), Clapton, in Norway (Faroe 40% and operator) and Cooper in Norway (Faroe 30%)."
Results of the T-Rex and Bolan exploration well, Norwegian Sea
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, announces that oil was discovered on both the T-Rex and Bolan exploration prospects in the Norwegian Sea (Faroe 30%), on licence PL431 (blocks 6506/12, 6406/2&3 part), but not in commercial quantities.
The 6406/3-9 well, which is the first well to be drilled in the licence, reached a total depth of 4,183m within shales of the Lange Formation. The well targeted Lower Cretaceous sandstones of the Lange Formation (T-Rex) and Lysing Formation (Bolan). T-Rex was the primary target and preliminary results based on extensive coring, wireline logs and pressure data have confirmed the presence of oil, but in a thinner than expected reservoir interval, and the well will therefore not be production tested. Fluid samples were successfully recovered in T-Rex indicating oil of a quality in line with the fluids seen in the original discovery well 6506/11-2 (drilled by Statoil in 1991). The Bolan prospect in the shallower Lysing Formation also encountered an oil column, within an inter-bedded sandstone package. A similar extensive data gathering programme was performed on the Bolan prospect as with T-Rex.
T-Rex and Bolan are situated next to the Statoil operated producing Smørbukk oil fields on the Halten Terrace in the Norwegian Sea. Both the T-Rex and Bolan discoveries extend potentially over very large areas within licence PL431. Additional evaluation is required in order to delineate the areal extent of the oil bearing layers, before any decisions in terms of a further appraisal programme can be made.
The drilling operation was undertaken by Maersk Oil as operator (70% interest), using the Transocean Winner drilling rig, and the well is now being plugged and abandoned.
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