100% stake in Licence 002

15 Jun 2005 07:00

Faroe Petroleum PLC15 June 2005 15th June 2005 Faroe Petroleum Takes Over Faroes Licence 002 Faroe Petroleum (the "Company") is pleased to announce that it has increased itsstake in Licence 002 in the Faroes from 25% to 100% and assumed operatorship. The Licence was awarded under the First Faroese Licensing Round in 2000 and heldin a joint venture between Faroe Petroleum and Eni. The Licence is located inthe south easterly corner of the Faroese territorial waters, extending overblocks 6004/11, 12, 13, 16 & 17, bordering the UK and close to the majorproducing oil fields Foinaven and Schiehallion. Licence 002 covers 214 square kilometres and, in addition to the potentialextension of the Marjun discovery from the adjacent Licence 001, it contains apromising un-drilled structural lead, Orodruin, with significant reservepotential. The Licence benefits from both 2D and 3D seismic coverage and the considerabledata generated from the 2003 well. The first exploration well on Licence 002was drilled in 2003 by Eni on a large stratigraphic prospect on behalf of theEni/Faroe Petroleum joint venture but only encountered traces of hydrocarbons. The term of the Licence currently extends to August 2006, and all work programmeobligations have been met. Licence 002 lies near to the undeveloped Suilven discovery which is in UK waterson the same structural trend as Orodruin. There have also been a number ofdiscovery wells drilled on the UK side of the territorial boundary, includingthe latest announced discovery by Chevron on the Rosebank/Lochnagar prospectdrilled in 2004. Several other exploration and appraisal wells are scheduled tobe drilled on surrounding acreage in both the Faroes and the neighbouring westof Shetlands area in the near future. The Company is also pleased to report the successful completion of itsproprietary 2D long-offset seismic acquisition survey over the Freya field inLicence, operated by Faroe Petroleum. This is the first survey in an extensiveseismic data programme being acquired over 6 of the Company's Atlantic marginlicences this year. Graham Stewart, chief executive of Faroe Petroleum commented: "We are very pleased to have increased our stake in Licence 002 which we believehas the potential to yield significant value. Following this acquisition, FaroePetroleum is the operator of two of its four Faroese Licences, in a portfolionow encompassing 11 Licences in total. This transaction further enhances FaroePetroleum's appeal to the investor seeking a direct route to the value potentialof the Atlantic margin region." Ends Enquiries: Graham Stewart, chief executive, Faroe Petroleum plc 01224 652 810 Jonathon Brill/Billy Clegg, Financial Dynamics 0207 831 3113 This information is provided by RNS The company news service from the London Stock Exchange