faroe petroleum plc (FPM) Snapshot

Faroe Petroleum plc announced the appointment of Jonathan Cooper as Chief Financial Officer. Jonathan will take up his appointment on July 1, 2013. Iain Lanaghan is remaining with the company until June 30, to ensure a seamless handover.

Faroe Petroleum plc announced the results of the Darwin frontier exploration well (7218/11-1) (Faroe 12.5%). The objectives of the well, which is the first to be drilled in this Norwegian Barents Sea licence, were to prove hydrocarbons in the Paleocene and Upper Cretaceous reservoirs. Gas shows were recorded in the Paleocene interval although no hydrocarbons were found in the Cretaceous and accordingly the well has been declared dry. An extensive data set has been collected, including wire-line logs, pressure data and side-wall cores and a full formation evaluation is underway. The Darwin prospect is located on the Veslemøy High in the frontier western part of the Barents Sea approximately 60 to 80 kilometres to the south west of the recent significant Statoil Skrugard and Havis oil discoveries. The well was drilled to a total depth of 2,542 metres in the Lower Cretaceous. The well will now be permanently plugged and abandoned. The drilling operations have been undertaken by Repsol Exploration Norge AS (20%) utilising the Transocean Barents semi-submersible drilling rig. The other joint venture partners are Talisman Energy Norge AS (12.5%), Marathon Oil Norge AS (10%), RWE Dea Norge AS (15%), Det norske oljeselskap ASA (10%) and Concedo ASA (20%).

Faroe Petroleum plc announced the results of the North Uist exploration prospect west of Shetland. The 213/25c-1V exploration well targeted several reservoir objectives, the most significant of which was the North Uist prospect. The well reached a total vertical depth of 4,700 metres and encountered gas condensate in sandstone reservoirs in the target section. An extensive data set has been collected, including wire-line logs, pressure data and side-wall cores. A full formation and volume evaluation is underway. Preliminary results indicate varying reservoir quality and the commercial potential has yet to be evaluated. The shallower Cardhu prospect encountered traces of hydrocarbons. This deep water frontier exploration well (Blocks 213/20b, 214/16b, 213/25c) is located near to Chevron's Rosebank oil discovery, also on the Corona Ridge, west of the Shetland Islands. To manage the typically higher well costs in this region, Faroe secured a financial carry of a portion of the well costs through farm-out arrangements and a relatively low retained licence equity. The drilling operation has been undertaken by BP Exploration Operating Company Limited using the Stena Carron drill-ship. The well will now be plugged and abandoned, as planned.