LONDON (Alliance News) - Faroe Petroleum PLC Wednesday said it has begun drilling an exploration well on the Pil/Bue discoery in the Norwegian Sea, and said an exploration well on the Portrush prospect will be drilled in the third quarter by oil giant Royal Dutch Shell PLC.
The exploration well on the Pil/Bue discovery, which sits on the PL586 license, will target the Boomerang prospect. Faroe holds a 25% interest in the exploration well.
On the PL793 license, operated by Shell with a 40% stake whilst Faroe holds a 20% stake, an exploration well has been added by Shell to the exploration programme expected to begin in the third quarter of 2015. That prospect is also in the Norwegian Sea near the producing Njord field and Pil discovery.
Faroe said average production between January 1 and May 31 was 11,324 barrels of oil equivalent per day, "reflecting better than forecast performance" from its main producing fields in the UK and Norwegian North Sea, it said.
"Average production guidance for the year is under review but currently remains at 8,000 to 10,000 barrels of oil equivalent per day. A review of this guidance will be undertaken following the summer maintenance period," said Faroe.
Higher production and lower general costs have also seen the average operating cost per barrel fall to around USD22. For the whole of 2015, Faroe is expecting the average cost to come in at around USD30 per barrel.
"I am delighted to report that Faroe Petroleum is performing very well despite continuing low oil prices and sector instability. 2015 is proving to be Faroe's most active year to date, with several exceptional prospects to be drilled and production at an all-time high," said Chief Executive Graham Stewart.
Faroe shares were up 2.4% to 85.00 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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