6th Mar 2014 09:15
LONDON (Alliance News) - Faroe Petroleum PLC said Thursday it has discovered oil and gas at its Pil exploration well in the Norwegian Sea.
Faroe said a gross hydrocarbon-bearing reservoir section with approximately 135 metres of oil and 91 metres of gas has been penetrated at the Pil well (6406/12-3S) in the Jurassic reservoir of the Rogn Formation, which has proved to be an effective reservoir at the Shell-operated Draugen oil field, located 60 kilometres to the north east, said the company.
The firm has conducted preliminary results on extensive coring, wireline logs and pressure data, these show that the well has encountered oil and gas in reservoir sands with a very high net to gross ratio.
Faroe will now conduct a drill stem test once total vertical depth has been reached; subject to positive test results, an immediate side-track well is expected to be drilled to confirm the lateral extent of the Rogn reservoir on this discovery, it said.
Graham Stewart, Chief Executive of Faroe Petroleum, said, "This discovery builds on Faroe's already significant position in this prolific part of the Norwegian Sea and we look forward to unlocking further potential on this licence. Pil is one of three exploration and appraisal wells we are drilling concurrently in our continuing high impact exploration and appraisal programme.
"The two other wells currently drilling are the Solberg well (Faroe 20%), on the Halten Terrace, and the Butch East well (Faroe 15%), adjacent to the Butch Main discovery (Faroe 15%) in the Norwegian North Sea. Results are expected on Solberg and Butch East in the coming weeks," Stewart added.
Faroe has a 7.5% working interest in the well. The Pil licence drilling operations are operated by VNG Norge AS (30%) using the Transocean Arctic drilling rig with partners Spike Exploration Holdings AS (30%) and Rocksource Exploration Norway AS (15%).
Shares in the AIM-listed exploration were trading up 12.82% at 120 pence per share Thursday morning, one of the biggest gainers on the market.
By Alice Attwood; [email protected]; @AliceAtAlliance
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