2nd Jun 2014 09:11
LONDON (Alliance News) - Faroe Petroleum PLC Monday said drilling has started at the Centrica PLC operated Butch South West exploration well 8/10-6S in the Norwegian North Sea.
The oil and gas company, with operations in Norway, the Atlantic margin and the North Sea, said the well, which is next to its major 2011 Butch discovery, has the potential to add substantial value to the Butch field.
The Butch Main oil discovery contains light crude oil in a high-quality reservoir, and Centrica is currently working on a development plan for the discovery, in parallel with drilling the Butch South West well.
Faroe said that if Butch South West is successful, the development has the potential to become a stand-alone design, with its own dedicated facility, instead of a sub-sea tie-back to existing nearby infrastructure.
The Butch licence is owned and operated by Centrica, which has a 40% stake, while Faroe has a 15% stake, Tullow Oil Norge AS, a subsidiary of Tullow Oil PLC, has a 15% stake, and Suncor Norge AS holds the other 30%.
"We are pleased to announce the spudding of the Butch South West exploration well which, if successful, offers the potential to add substantially to the volumes and value of the Butch field, as the adjacent Butch Main field is already on track for near-term development," Chief Executive Graham Stewart said in a statement.
Faroe Petroleum shares were trading off 0.4% at 135.25 pence, Centrica shares were up 0.2% to 336.40 pence and Tullow Oil shares were up 0.3% to 845.63 pence on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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