Faroe Petroleum Plc Regulatory News (FPM)

7 Sep 2005 06:00

Wednesday 7 September 2005Granby Oil and Gas plc("Granby" or "the Company" or "the Group")Granby Successful in North Sea Licensing RoundGranby Oil and Gas plc is pleased to announce that it has been offered 12additional blocks and part blocks to be held under six licences in the NorthSea as part of the 23rd UKCS Licensing Round announced by the DTI. Granbyreceived one of the highest number (11) of operated blocks for an independentcompany.This award takes Granby's acreage position in the North Sea to 22 blocks andpart blocks in total, and has significantly strengthened the company's presencein its existing core area in the central North Sea, and brings the company intothe Southern Gas and Firth of Forth basins for the first time. A number of theblocks offered are adjoining Granby's existing licences, where cross boundaryprospects had previously been mapped.Granby has been offered one traditional licence with a seismic work programme,and five promote licences with work programmes including reprocessing andre-evaluations of pre-existing datasets. The geophysical company TGS-NOPEC is apartner with Granby in a number of the promote licence awards. Faroe Petroleumplc (as operator) is also a partner with Granby in one of the awards.The offered blocks and initial interests are as follows:Block Numbers Licence Type Granby Initial Partners Interest 14/8 (part); 14 Traditional 100% (operator) n/a /9 (part) 13/25 Promote 50% Faroe Petroleum plc 50% (operator) 26/4 (part); 26 Promote 66.67% (operator) TGS-NOPEC 33.33% /5; 26/9; 26/10 (part); 27/1 (part); 27/6 (part 42/28c Promote 66.67% (operator) TGS-NOPEC 33.33% 43/7 Promote 66.67% (operator) TGS-NOPEC 33.33% 44/27b Promote 66.67% (operator) TGS-NOPEC 33.33% Applications for blocks 13/25, 14/9, 43/7 and 44/27b are covered by an existingAcquisition and Alliance Deed, under which Elixir Petroleum Ltd has the optionto be assigned one half of Granby's interest in these blocks.Commenting on these awards, Managing Director David Grassick said:"These awards enable Granby to continue its successful strategy of building asignificant portfolio of assets through the discovery and exploitation of oiland gas reserves in the North Sea. The new plays and prospects in this acreagehave increased the value and diversity of our portfolio significantly."Executive Director Richard Moreton added:"We are very pleased with these awards which enhance Granby's presence in theCentral North Sea and add a number of exciting new prospects to the company'sinventory. We look forward to working with our new partners, TGS-NOPEC in theSouthern Gas Basin, and with Faroe Petroleum in the Central North Sea."Martin Whitehead, Exploration Director of Granby Oil and Gas, said:"This is an excellent result for Granby's exploration team, in a verycompetitive licensing round. We are pleased to have been offered so many blockswith only modest work obligations, demonstrating the quality of our technicalwork for the applications."Enquiries:Granby Oil and Gas 020 7464 8473 David Grassick, Managing Director 07785 921080 Richard Moreton, Executive Director 07814 579246 Nigel Burton, Finance Director 07785 234447 KBC Peel Hunt 020 7418 8990 Jonathan Marren College Hill 020 7457 2020 Ben Brewerton / Jim Joseph ENDGRANBY OIL AND GAS PLC