LONDON (Alliance News) - Takeover target Faroe Petroleum PLC on Friday said it would be revising the range of recoverable hydrocarbons at the Brasse field.
Faroe has been drilling a side-track well at Brasse, 31/7-3A, in the North Sea. The company has a 50% interest in the field, and is the operator.
Faroe drilled to 2,254 metres below sea level, and wireline logging, pressure data, and fluid sampling has confirmed the well found 62 metres of gross hydro-carbon bearing reservoir from the Jurassic period.
Drilling also found an approximate 20 metre oil water contact in the northern part of Brasse, deeper than the south or centre.
"Based on the extensive data collected from the four previous well bores and the excellent quality sands encountered in the Brasse East exploration well 31/7-3 S, immediately to the east of Brasse and the northern appraisal side-track, the uncertainty range for the total gross volumes of recoverable hydrocarbons in the Brasse field will be revised," commented Faroe.
"The sidetrack well encountered a lower than expected net to gross ratio and a significantly deeper oil water contact. These new data points will now be incorporated in the Brasse geological models and an updated reserves range will be reported in due course."
The well is now to be plugged and abandoned as planned.
Earlier Friday, Norway's DNO ASA said acceptances and its own stake in Faroe have passed 75%, the threshold it had set to de-list Faroe.
DNO has made a GBP641.7 million offer for Faroe, at 160 pence per share, from an initial 152p offer. Shares were flat Friday afternoon at 160p.
