Faroe Petroleum Plc Regulatory News (FPM)

1 Feb 2007 15:07

Faroe Petroleum PLC01 February 2007 1st February 2007 Faroe Petroleum plc ("Faroe Petroleum", "Faroe" or the "Company") UK 24th Licensing Round Awards Faroe Petroleum, the AIM quoted oil and gas company focusing on exploration anddevelopment opportunities in the Atlantic margin, the North Sea and Norway,announces that it has been awarded five licences, two West of Shetland and threein the North Sea, under the UK 24th Licensing Round announced by the Minister ofthe Department of Trade and Industry today. This award increases the number oflicences held by the Company to thirty three, of which it operates nine. HIGHLIGHTS • five licences including nine blocks and seven part-blocks covering approximately 2,300 sq km gross • two Licences awarded to Faroe as an operator in its own right • further joint ventures with Chevron and Oilexco • six large exploration leads identified on the acreage together with one smaller undeveloped discovery • three "Traditional" and two "Promote" licences awarded The following awards have been made: Glenshee (Blocks 217/21, 22, 26 & 216/30) - Faroe Petroleum 30% This West of Shetland Traditional Licence which has been awarded to Chevron U.K.Limited (70% and Operator) ("Chevron"), and Faroe Petroleum (30%), covers 800square kilometres and is situated on the prospective Corona Ridge play in closeproximity to the 22nd Round Talisker licence interest, also held by Faroe andChevron U.K. Limited. The work programme consists of high technology electromagnetic /telluric acquisition and associated studies. Marjun (Blocks 204/16,17,21,22) - Faroe Petroleum 100% and Operator This Promote Licence which covers 600 square kilometres is adjacent to the UKFaroes border line and contains an extension of the Faroes Marjun discovery andother exploration leads. The work programme consists of high technology seismicacquisition, and geological studies in the first two years to identify adrilling location and to screen the entire area for prospectivity in advance ofa drill or drop decision. The Greater Halibut Area Oilexco North Sea Limited ("Oilexco") and Faroe Petroleum drilled the firstwildcat exploration well in this under-explored play in 2006 on the NorthHalibut licence (Well 14/21a-1) in the inner Moray Firth and Oilexco has nowtaken up its rights to acquire a 55% working interest and operatorship in thisLicence. Oilexco and Faroe have been actively working up a regional study of theplay which has culminated in the application for and successful award of thefollowing licences in this core area: Halibut Lead A (14/16, 17 part, 21b & 22b, 13/20) - Oilexco (55% and Operator)Faroe Petroleum 45% This Traditional Licence which covers 600 square kilometres contains asubstantial lead and is situated immediately to the North of the Company'sexisting acreage on the Halibut Horst, and is directly adjacent to the oil proneWitch Ground Graben. The work programme consists of shooting new high technology seismic, andgeological studies in the first two years to identify a drilling location and toscreen the entire area for prospectivity in advance of a drill or drop decision. Halibut Area (Block 13/14,15) - Oilexco (55% and Operator) Faroe Petroleum 45% This Promote Licence which covers 400 square kilometres contains a substantiallead and is located in a reservoir and oil migration fairway some 20 kilometresto the north west of the Company's existing acreage on the Halibut Horst. The work programme consists of high technology seismic acquisition, andgeological studies in the first two years to identify a drilling location and toscreen the entire area for prospectivity in advance of a drill or drop decision. Keira (Block 12/29) - Faroe Petroleum 100% and Operator This Traditional Licence, located immediately North of the Company's Inner MorayFirth Olivia Licence (Blocks 18/3, 4) covers approximately 200 square kilometresand contains the 12/29-1 oil discovery which tested 38 degree API oil (Beatricetype) from Jurassic reservoir. There are low risk exploration leads up-dip from this discovery well on block,and an appraisal well will be planned up-dip from the discovery to test both theJurassic oil column and the exploration potential in the deeper Devonianreservoirs. The work programme consists of high technology seismic acquisition, andgeological studies in the first two years to identify a drilling location and toscreen the entire area for prospectivity in advance of a drill or drop decision. Graham Stewart, Chief Executive of Faroe Petroleum, commented: We are very pleased with these awards, which have come in the same week as theaward of our six new Norwegian licences. These new licences further broaden andimprove the balance of our portfolio. We have significantly consolidated ourposition in the West of Shetlands area as well as in the Moray Firth area of theCentral North Sea. The new licences, cover a total area of approximately 2,300square kilometres, adding greater potential for near term drilling activity inthe proximity of infrastructure, and enhancing our potential to createsignificant value for our shareholders." - ends - Enquiries: Faroe Petroleum plcGraham StewartTel: 01224 652 810gstewart@faroe-petroleum.com Financial DynamicsBilly CleggTel: 0207 269 7157billy.clegg@fd.com This information is provided by RNS The company news service from the London Stock Exchange