Faroe Petroleum Plc Regulatory News (FPM)

24 August  2012

Faroe Petroleum plc ("Faroe Petroleum", the "Company")

Results from Cooper well flow test

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic Margin, the North Sea and Norway, announces further results on the 6506/11-9 S Cooper well in the Norwegian Sea (Centrica 40% and operator, Suncor 30% and Faroe Petroleum 30%).

The primary target for the well was to prove up hydrocarbons in the Middle Jurassic Garn, Ile, Tofte and Tilje Formations. The secondary target was to prove up hydrocarbons in the Cretaceous Lysing and Lange formations. The well encountered oil in a 59 metres gross section within the Garn Formation and 10 metres within the Ile Formation. Extensive data acquisition and sampling has been carried out. In addition oil was encountered in thin sand stringers within in the Cretaceous Lysing and Lange formations.

A formation drill stem test (DST) has been performed on the Garn Formation, however no hydrocarbons flowed to surface. Several formation and pressure tests were also carried out and confirmed restricted flow within the reservoir, however no interpretation of potential fluid contacts was possible. The partnership will now evaluate these Jurassic and Cretaceous discoveries, together with the results from the DST and how this will impact the remaining licence potential

The Cooper well is the first exploration well within the production license PL 477 and was awarded through the APA 2007 license round. The well, which is now being plugged and abandoned was drilled to a vertical depth of 4954 meters (5330 meters measured depth) below sea level and was completed in Lower Jurassic Åre Formation.

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

"Although the DST results on the Garn formation were disappointing we take encouragement from the discoveries made at multiple horizons and that the poor flow characteristics of the Jurassic reservoir observed in this well are not seen in the other nearby producing fields.

"We will continue to evaluate the large amount of data that has been collected in the Cooper well to try to resolve why the Garn formation is tight and whether this is likely to be a local or a field wide reservoir phenomenon. It is a testament to the technical team at Faroe who identified the Cooper prospect and have again delivered, on prognosis, a discovery of hydrocarbons in multiple horizons.

"Our high impact drilling campaign continues with the North Uist well with BP as operator, West of Shetlands and we look forward to spudding the Spaniards well in the UK with Premier Oil as operator in October 2012."

For further information please contact:

Jan-Tore Paulsen, Exploration Manager Norway of Faroe Petroleum and a Geophysicist (MSc. in Geophysics from University of Bergen), who has been involved in the energy industry 15 years, has read and approved the technical disclosure in this regulatory announcement.

Notes to Editors

The Company has, through successive licence applications and acquisitions, built a substantial portfolio of exploration, appraisal, development and production assets across the Atlantic Margin, the UK and Norwegian North Sea and the Norwegian Sea. Faroe Petroleum has extensive experience working with major oil companies and its joint venture partners include BP, Chevron, DONG, ENI, E.ON Ruhrgas, GDF, OMV, RWE Dea, Statoil and Wintershall.

The Company's licence portfolio provides considerable spread of risk and reward, encompassing over 40 licences located in the West of Shetlands, offshore the Faroe Islands, the UK North Sea and Norway. In addition Faroe Petroleum currently has interests in six producing oil and gas fields in the UK and Norway.

Faroe Petroleum is quoted on the AIM Market of London Stock Exchange plc with offices in Aberdeen, Stavanger, London and Torshavn. The Company is well financed with a fully funded drilling programme extending into 2013 and has highly experienced technical teams at the leading edge of seismic and geological interpretation, reservoir engineering and field development, focused on creating exceptional value for its shareholders.