Faroe Petroleum Plc Regulatory News (FPM)

19 Jul 2006 12:26

Faroe Petroleum PLC19 July 2006 19 July 2006 Faroe Petroleum plc ("Faroe Petroleum", "Faroe" or the "Company") Faroes Brugdan Well Drilling Update Faroe Petroleum, the oil and gas exploration Company with a portfolio of 17licenses in the Faroes, West of Shetland and the North Sea, announces that thedrilling of the Brugdan Licence 006 well in the Faroes has commenced. Statoilis operator of the well and the Licence group, which in addition to Statoil andFaroe Petroleum also consists of Amerada Hess, Anadarko, Atlantic Petroleum, BGGroup, DONG and Enterprise Oil (Shell). Faroe Petroleum holds a 4.04% equityinterest in the Licence, which it acquired in December 2005 on favourable terms,and as a result benefits from a substantial reduction in cost exposure in thewell. The deep water semi-submersible drilling rig Stena Don, is drilling the well in478 metres of water and the drilling operation is expected to take approximatelythree months. Graham Stewart, Chief Executive of Faroe Petroleum said: "The well is an important step towards unlocking the regional geology to thebenefit of the Company's four further Faroes licences, in which we hold directinterests ranging from 10% to 100%. Through participation in this well, we willgain access to significant new geological data, but will also have exposure tohigh reserve potential in the Brugdan prospect at a reasonable cost." - Ends - Enquiries: Faroe Petroleum plc Graham Stewart Tel: 01224 652 810 Financial Dynamics Billy Clegg/Edward Westropp Tel: 0207 020 7831 3113 This information is provided by RNS The company news service from the London Stock Exchange