Faroe Petroleum Plc Share News (FPM)

LONDON (Alliance News) - Faroe Petroleum PLC said Tuesday that it has commenced spudding of the VNG-operated Pil exploration well in the Norwegian Sea.

Faroe said it has begun spudding the VNG-operated Pil exploration well 6406/12-3S, in which it has a 25% holding. The Pil prospect, licence PL 586, is located within "tie-back" distance to the Njord platform in which Faroe holds a 7.5% interest, of 33 metres.

Faroe said the prospect is a combined structural and stratigraphic closure and the primary target is at the shallower upper Jurassic Rogn formation sandstone which has proved to be an effective reservoir in the producing Draugen field, located 60 kilometres to the north east.

The independent oil and gas company principally operates in the Atlantic margin, the North Sea and Norway.

The drilling operations are operated by VNG Norge AS, with a 30% holding, using the Transocean Arctic drilling rig with partners Spike Exploration Holdings AS (30%) and Rocksource Exploration Norway AS (15%).

Graham Stewart, Chief Executive of Faroe Petroleum said, "Pil is situated in close proximity to the Njord hub facilities, which act as host to the Hyme field, and is also likely to host the significant Snilehorn oil field and potentially further yet to be discovered fields in the vicinity.

"Pil is the third well in our 2014 exploration programme. This exciting exploration campaign commenced with the Butch East well (Faroe 15%), currently drilling, close to the producing Ula, Tambar and Gyda oil fields and continues with the Novus well, currently drilling, close to the producing Heidrun oil field, operated by Statoil. Pil follows the significant Snilehorn discovery announced in November 2013. Following these wells, we also look forward to the drilling of the Solberg (Faroe 20%) and Butch South West (Faroe 15%) prospects, also in Norway," he said.

Looking ahead, the company remains confident about its prospects, with Stewart stating, "With material equity stakes held in a portfolio of excellent quality licences across the prolific North Sea, Norwegian Sea and Barents Sea in Norway, Faroe Petroleum has the real potential to generate considerable shareholder value through our sustained programme of exploration and appraisal drilling."

Shares in Faroe were trading up 1.45% at 122.25 pence per share Tuesday morning.

By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance

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