Faroe reports successful Agar/Plantain exploration well

ABERDEEN -- Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, is pleased to announce a successful result with the Agar/Plantain exploration and appraisal well in license P1763 (Faroe 25% of Agar/Plantain, 12.5% of the wider license), located in the UK Continental Shelf  (“UKCS”).

Highlights

• Recoverable resources in Agar estimated between 15 MMboe and 50 MMboe (between 3.8 MMboe and 12.5 MMboe net to Faroe).
• Reservoir encountered close to prognosis: 20 m gross hydrocarbon-bearing reservoir section with excellent reservoir quality and high net to gross ratio.
• Significant discovery adjacent to infrastructure.
• Further evaluation of development options to establish commerciality will be undertaken in coming months.
• High value barrels due to Faroe’s UK tax losses and attractive fiscal regime in UK

Agar appraisal

The initial wellbore of the exploration well 09/14a-17B targeted the plantain prospect and was drilled to a total depth of 2,254 m MD. The well encountered a thin oil column in a high quality sandstone reservoir. Based on this promising result, the partnership elected to drill a sidetrack 09/14a-17BZ up-dip to appraise the 2014 Agar oil discovery.

The Agar sidetrack successfully encountered the Upper Frigg Formation at 1,763 m MD and penetrated a gross reservoir zone of 20 m, with a high net to gross ratio confirmed by log and pressure analysis, and an average porosity of approximately 30%. No oil-water contact was observed in the well. All data from the discovery is being assimilated and a future work program on the license is now being considered by the joint venture partners. The sidetrack well 09/14a-17BZ was drilled to a total depth of 1,962 m MD.

Plantain discovery

In the plantain prospect, at a depth of 2,066 m MD, the well encountered approximately 27 m TVD of high quality net reservoir sandstones of the Eocene Lower Frigg Formation. Logging-while-drilling and pressure analysis indicates a thin net oil pay zone with a significant underlying zone of residual hydrocarbons.

Close proximity to production infrastructure

The Agar/Plantain discovery is located approximately 12 km from the Apache-operated Beryl Bravo facility to the south west, and the Alvheim FPSO is located approximately 14 km to the southeast. These facilities both offer potential for development of the Agar discovery.

The well was drilled by the Transocean Leader semi-submersible drilling rig, and will now be plugged and abandoned as planned. The Agar/Plantain wells are operated by Azinor Catalyst (25%) with partners Cairn (50%) and Faroe (25%). License P1763 is operated by Apache Beryl Limited (50%), with partners Cairn (25%), Faroe (12.5%) and Azinor Catalyst (12.5%).

Graham Stewart, chief executive of Faroe Petroleum, commented, “We are pleased to announce a very promising discovery in the Agar Plantain prospects. This is our first exploration well in the UK since 2013 and this together with the award of the exploration license on the exciting Edinburgh prospect earlier this year marks a return of focus to the UKCS which offers significant value potential, especially with our existing tax losses in the UK.

“The company’s exploration program will continue over the remainder of the year with two further committed exploration wells in Norway: the Brasse East (Faroe-operated) and Cassidy wells.”