16th Mar 2015 08:12
LONDON (Alliance News) - Faroe Petroleum PLC Monday said drilling has begun on the Shango exploration well in the Norwegian North Sea by the operator of the project.
Faroe holds a 20% stake in the exploration well, with Total Exploration and Production Norge AS holding 40% and the balance being evenly split between Det norske oljeselskap AS and Centrica Resources Norge AS, part of Centrica PLC, with 20% each.
Faroe said the operator, Total, began drilling the Shango well which lies five kilometres from the producing Skirne field, which is also operated by Total.
Faroe said Shango is located on the spill-route from the Skirne field, which could mean Total will "fast-track" a subsea development from Shango to the Skirne field if it's found to contain a similar gas and condensate product as found in the Skirne field.
"I am very pleased to announce the commencement of our 2015 exploration drilling programme, with the high impact Shango well," said Chief Executive Graham Stewart.
Faroe shares were up 2.2% to 71.53 pence per share Monday morning, whilst Centrica shares were down 0.3% at 237.30 pence.
By Joshua Warner; [email protected]; @JoshAlliance
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