31st May 2006 07:31
Faroe Petroleum PLC31 May 2006 31 May 2006 Faroe Petroleum plc ("Faroe Petroleum", "Faroe" or the "Company") Drilling Update: First Halibut Horst Exploration Well Completed Faroe Petroleum, the independent oil and gas company with a portfolio of 15licences in the Faroes, West of Shetland and the North Sea, announces thatdrilling of the first exploration well on the Halibut Horst (North Halibut 14/21a-A) in the North Sea has been completed. The well which was operated byOilexco North Sea Limited encountered traces of hydrocarbons but not incommercial quantities and the well is being plugged and abandoned. The well was drilled to a total depth of 3,692 feet (approximately 1,125 metres).Under a farm-in agreement, Oilexco North Sea Limited incurred 80% of thecosts associated with the well work programme, in return for the right to anequity interest of 55% on satisfying this well obligation. Faroe Petroleum'scost exposure is limited to 20% of the work programme costs. The well wasdrilled quickly and relatively inexpensively. Graham Stewart, Chief Executive of Faroe Petroleum, commented: "Although we are disappointed the North Halibut exploration well was not adiscovery, it provides us with significant new information from which to gain amuch greater understanding of the geology in this under-explored area. We arealso pleased with the successful partnership with Oilexco North Sea Limited. "Our team is focused on progressing and growing the company's portfolio of 15licences in the Atlantic Margin and the North Sea and increasing further thenumber of licenses now that we have pre-qualified as a licencee in Norway. Withtwo firm well committments and several other significant wells being prepared,we are making good progress and can look forward to an active period ahead." - Ends - Enquiries: Faroe Petroleum plc Graham Stewart Tel: 01224 652 810 Financial Dynamics Billy Clegg/Edward Westropp Tel: 0207 020 7831 3113 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Faroe Petroleum Plc