In addition to that, DNO ASA, the Norwegian oil and gas operator, today announced that it has agreed to acquire 15.37% of the share capital of Faroe Petroleum from Delek Group Ltd.
The acquisition covers all Faroe Petroleum ordinary shares held by Delek, totalling 56.4 million, at a price of
Shares in Faroe Petroleum were 13% higher at
DNO re-entered the North Sea upstream sector in 2017 through the acquisition of Origo Exploration Holding AS after a six-year hiatus during which the company built a successful
In regards with the gas discoveries, the exploration well 6506/11-10 targeted two formations, the Cretaceous Hades prospect and the Jurassic Iris prospect located directly underneath. The well has been drilled to a total depth of 4,536 metres. Preliminary results based on coring, wireline logs, fluid sampling and pressure data show that the well has encountered gas or condensate bearing reservoir within both prospects.
In the Hades prospect, at a depth of 3,932 metres, the well encountered a 35 metres gross gas or condensate column within the Cretaceous Lange Formation of which 15 metres are net reservoir sandstones of moderate to good reservoir quality. Gross volumes of recoverable hydrocarbons for the Hades prospect are estimated to be in the range of 19 to 113 million barrels of oil equivalent, exceeding pre-drill estimates.
In the Iris prospect, at a depth of 4,223 metres, the well encountered a 218 metre, high net-to-gross sandstone interval, within the Jurassic Garn Formation, containing a 93 metre column of gas or condensate. Within the gas or condensate column, net reservoir has been estimated at 85 metres, consisting of sandstones of moderate to excellent reservoir quality.
Pressure data indicates that the Hades and Iris prospects are separate hydrocarbon accumulations. Gross volumes for the Iris prospect are estimated to be 19 to 132 million barrels of oil equivalent, exceeding pre-drill estimates.
The Iris and Hades discoveries are located approximately 8 kilometres to the north of the producing Morvin Field and 20 kilometres to the northwest of the Asgard Complex, where large quantities of gas and condensate continue to be produced and transported to several landing points on the European continent.
"We are very pleased to announce significant discoveries in both the Hades and Iris prospects. Both are well in excess of pre-drill estimates. These discoveries are located in one of our core areas and build on Faroe's already significant position in the Norwegian Sea," Chief Executive Graham Stewart.
"The Hades and Iris prospects, previously known as Aerosmith and Zappa respectively, have been part of Faroe's portfolio for many years, forming the main part of a successful APA licence application made in 2009. It is extremely gratifying to see both of these prospects delivering significant discoveries, further confirming Faroe's consistent and industry-leading exploration track record, which has directly and indirectly generated approximately 75% of our 2P reserves," Stewart continued.
