LONDON (Alliance News) - Faroe Petroleum PLC on Thursday said it has built on its existing position in the Norwegian North Sea, revealing the discovery of oil and gas in the Brasse exploration well it operates in licence PL740 in the Norwegian North Sea.
Faroe, which has a 50% interest in licence PL740, said the well was drilled to a total depth of 2,780 metres, and found about 18 metres of gross gas-bearing and approximately 21 metres of gross oil-bearing Jurassic reservoir.
It is believed to be analogous to the effective reservoir at the Brage producing oil field, in which Faroe has a 14.3% interest, about 13 kilometres to the north of Brasse, the company said.
Preliminary results show that the well encountered oil and gas in reservoir sandstones of good quality, Faroe said, with the presence of oil and gas confirmed by fluid sampling.
A decision has been made to drill a sidetrack to help confirm both the reservoir distribution and hydrocarbon contacts, Faroe said. The company's partner in the PL740 licence is Point Resources AS. The pair are awaiting the results of the sidetrack.
"This discovery in one of our core areas, builds on Faroe's already significant position in the Norwegian North Sea via a low cost exploration well. If the Brasse drilling results prove a commercial discovery, it could be tied-back to the Brage production facilities or alternatively to other nearby installations. Once there is further information in relation to results from the sidetrack well we will update the market," Graham Stewart, chief executive of Faroe, said in a statement.
In line with previous guidance, Faroe said, production from the Njord and Hyme fields, in which the company has a 7.5% interest, has been suspended, and the Njord A platform will be towed to shore for refurbishment and modification.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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