LONDON (Alliance News) - Faroe Petroleum PLC said Thursday it has secured a rig for drilling on the Brasse prospect in the Norwegian North Sea, and that production from the Enoch Field in the UK North Sea has recommenced.
Faroe has agreed a contract with Transocean Offshore (North Sea) Ltd for the Brasse prospect to lease a semi-submersible Transocean Arctic drilling rig on behalf of its 50% owned joint venture. It has budgeted its net share of the well costs after tax to be less than GBP2 million.
Elsewhere, the Enoch Field, in which Faroe has a 13.86% stake, has recommenced production after an extended period of shut-in for repair and maintenance.
"Despite the challenging industry backdrop, Faroe is robust with a strong cash position and balance sheet, and continues to perform very well, with production in line with our increased guidance. We look forward to an exciting three well exploration drilling programme for 2016 in Norway, which is firming up on cost efficient terms, and continue to evaluate the potential to take advantage of further good-quality growth opportunities," said Chief Executive Graham Stewart in a statement.
Shares in Faroe were flat at 51.25 pence Thursday, shortly after midday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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