LONDON (Alliance News) - Faroe Petroleum PLC Tuesday said it has started to drill the Brasse exploration well 31/7-1 in the Norwegian North Sea which it hopes can be connected to its nearby producing Brage oilfield if successful.
Faroe is the operator and holds a 50% interest in the exploration well alongside its partner Core Energy AS. The well will target Jurassic aged sandstones by being drilled to a total vertical depth of 2,750 metres.
Notably, the exploration well is just south of the Brage oilfield, which is producing and partly owned by Faroe through its 14.3% stake. If the well is successful, Faroe believes it could be tied back to the facilities at Brage but said it could potentially be connected to "other nearby installations".
"This is a near field exploration target which provides significant upside potential to Faroe, in one of our core areas. On a post-tax basis the well is expected to cost Faroe less than GBP2.0 million," said Chief Executive Graham Stewart.
Faroe shares were down 1.1% to 70.50 pence per share on Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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