LONDON (Alliance News) - Faroe Petroleum PLC on Wednesday said it has been awarded four new exploration licences under the latest licensing round in Norway, teaming up with a number of well-known partners and taking over as operator of two sites.
Faroe has secured the licences under the Norwegian Awards in Pre-defined Areas Licence Round on the Norwegian Continental Shelf.
"We are very pleased to announce the award of four important new licences in the latest Norwegian licensing round. We have added new exploration plays to our portfolio as well as consolidating our position around the high quality 2016 Brasse discovery which we will be appraising later in 2017," said Chief Executive Graham Stewart.
In the Norwegian North Sea, Faroe will be the operator of and hold a 50% stake in licence PL740B, which is the Brasse extension covering block 31/4 and 31/7. Point Resources will partner Faroe on the project with a 50% stake.
The area could be a possible northward extension of the Brasse discovery on the eastern side of the Brage field, in which Faroe owns a 14.26% equity stake alongside Point Resources and three other partners.
Faroe said the work programme for the Brasse extension will be the same as the existing programme for the main Brasse licence, which Faroe also holds 50% of.
Faroe will also take a 20% stake in licence PL870, covering blocks 25/6, 9 and 26/7, otherwise known as Pabow. Statoil will own the rest of the area and operate the development. The area is located on the edge of the Stord basin, just east of the Shango licence that Faroe holds a 20% stake in.
Studies will be undertaken on the licence before a drill-or-drop decision is made in 2018, Faroe said.
Faroe will also have a 30% stake in licence PL881 over block 33/9, known as Goanna. Wellesley Petroleum will operate the project with the other 70% stake. The work programme involves the acquisition of 3D data and a drill-or-drop decision by 2018.
The fourth, licence PL888, is in the Norwegian Sea and is known as Canela. Faroe will operate the development with a 40% stake alongside ConocoPhillips and Wellesley, which will both hold 30% each.
The Canela prospect consists of down faulted blocks west of the producing Heidrun field. Reservoirs are expected to be the same Fangst group sands as found in Heidrun. The work programme consists of the acquisition or reprocessing of 3D seismic ahead of a drill-or-drop decision in 2019.
"We look forward to integrating these new licences into the exploration portfolio. The addition of good quality exploration acreage, our enhanced production portfolio and development pipeline ensures that we continue to expose our shareholders to balanced but high impact growth opportunities," said Stewart.
Faroe shares were 1.5% higher on Wednesday morning at 104.00 pence.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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