Faroe Petroleum PLC (FPM.LN), an independent oil and gas company
focusing principally on exploration, appraisal and production
opportunities in the Atlantic margin, the U.K. and Norway, Monday
announce a small discovery of oil at the Novus exploration well, in
which it has a 30% interest.
MAIN FACTS:
-Preliminary volumetric gross estimate of the size of the
discovery is 6 million - 15 million barrels of oil equivalent, or mmboe,
recoverable (net to Faroe 1.8 mmboe - 4.5 mmboe)
-Due to the presence of a large gas cap in the reservoir,
Novus is unlikely to be of commercial size on its own; nearby de-risked
prospects and leads offer potential for a future commercial combination
-Well encountered a 12 meter net gas column and a 12.5 meter
net oil column in a high quality, thicker than expected Garn formation
-Well confirmed the play model, with excellent quality
reservoirs in the area, and that 3D seismic anomalies are diagnostic as a
direct hydrocarbon indicator in these types of reservoirs
-Well result will be used to refine the geological model and
de-risk additional prospects and leads on the license for potential
future drilling
-Well cost significantly mitigated through August 2013 farm
down from 50% to 30%, on a cost carried basis, together with the
Norwegian tax rebate.
-Shares at 0825 GMT down 4 pence, or 3.63%, at 120 pence valuing the company at 263.73 million pounds.