LONDON (Alliance News) - Faroe Petroleum PLC said Tuesday it has farmed into the UK Continental Shelf Agar Plantain exploration & appraisal well operated by Azinor Catalyst Ltd.
The Plantain exploration prospect will be drilled first followed by a contingent side-track to appraise the Agar oil field.
Operator volumes in Agar and Plantain have been estimated by Catalyst at a combined mid-case resource of 60 million barrels of oil equivalent, with an upside case of 98 million barrels of oil equivalent.
Drilling on Agar Plantain will start later this month at a total estimated cost of USD15 million.
Faroe joins Catalyst, which holds 25% stake and is an operator in this sole-risk well. Cairn Energy holds 50% interest in the Plantain exploration prospect.
Faroe took 25% interest in the Plantain well, which will be funded through its existing cash resources. Through the same transaction Faroe will become a 12.5% equity interest holder in the wider P1763 licence.
Chief Executive Graham Stewart said: "We are pleased to announce the Agar Plantain farm-in, targeting two oil prospects, adding a seventh well to our ongoing committed exploration and appraisal programme and further increasing the near term upside potential in our growing asset base."
Stewart added: "The Agar Plantain well represents a good opportunity to leverage our extensive Norwegian exploration expertise and track record onto the UK Continental Shelf, and in a cost-effective manner, taking advantage of continuing low rig rates."
Shares in Faroe Petroleum closed flat Tuesday at 139.00 pence each.
