30th Dec 2013 10:15
LONDON (Alliance News) - Faroe Petroleum PLC said Monday it has commenced spudding of the Centrica-operated Butch East exploration well 8/10-5S, the first of two back-to back-wells in Licence PL405/PL405B.
The independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, has a 15% stake in Butch East which is adjacent to the company's 2011 Butch discovery. The site is situated in approximately 65 metres water depth in the Norwegian North Sea, close to significant existing infrastructure with the giant Ula field approximately seven kilometres to the north-west, Tambar approximately 10 kilometres to the south-west and Gyda approximately 20 kilometres to the south.
The Centrica-operated Butch Main discovery was made in late 2011 and contains a significant presence of light crude oil in the Upper Jurassic reservoir of the Ula formation. Since the main Butch discovery was made, licence operator Centrica Energy Norway has acquired new high quality seismic data, which has been applied in the planning of two further exploration wells on the untested eastern and south-western sides of the large central Butch salt structure, said the firm.
Centrica is currently working on a development plan for the Butch Main discovery, in parallel with drilling the Butch East and Butch South West wells, according to Faroe.
The Butch licence drilling operations are operated by Centrica (40%) using the Maersk Giant jack-up drilling rig, together with the other joint venture partners Suncor Norge AS (30%) and Tullow Oil Norge AS (15%).
Graham Stewart, Chief Executive of Faroe Petroleum said, "If successful, Butch East offers the potential to substantially add to the value of the Butch field. [It is] the third well to spud in our near-term six well exploration programme. This exciting exploration campaign commenced with the significant Snilehorn discovery announced last month, and continues with the Novus well, currently drilling, close to the producing Heidrun oil field. Following these wells, we also look forward to the drilling of the Solberg and Pil prospects, both in the Norwegian Sea."
Shares in the firm were trading up 0.66% at 115 pence per share Monday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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