22 January 2009
Faroe Petroleum plc ("Faroe Petroleum", "Faroe" or the "Company")
Successful testing of the Breagh horizontal Well
Faroe Petroleum, the independent oil and gas company focusing
principally on exploration, appraisal and undeveloped field
opportunities in the Atlantic Margin, the North Sea and Norway, is
pleased to announce the successful testing of the 42/13-5 and
42/13-5z wells on the Breagh gas field, located in the UK Southern
North Sea Gas basin (Faroe 10%).
The well tested dry gas at a maximum rate of 26 million standard
cubic feet per day (mmscfd) from a number of perforations at various
intervals along a horizontal sand section of 1,200 feet and confirms
the economic benefits of utilising conventional horizontal wells in
the development of the field. The well will be suspended as a future
production well.
The well test results will now be incorporated into the partnership's
reservoir model to optimise the well requirements for the
development. The operator's geological mapping work, which will be
updated for the results of the 42/13 - 5 and 5z wells, is expected to
show an increase in gross rock volume in excess of 20% to its
previous estimate.
Graham Stewart, Chief Executive of Faroe Petroleum commented:
"We are very pleased to confirm that all of the objectives set for
the appraisal of the Breagh field during the 2008 drilling campaign
have been achieved. Additional gas was proved up with the 42/13-4
well, and the operator has now drilled and tested the 42/13-5z well
bringing the Breagh Field one step closer to development."
- Ends -
Trine Bjørvik, who has a degree in Petroleum Engineering from
Rogaland Regional College 1982 and an MBA from the Norwegian School
of Business and Administration is Asset Manager at Faroe Petroleum,
has been involved in the energy industry for more than 25 years and
has read and approved the technical disclosure in this regulatory
announcement.
Enquiries:
Faroe Petroleum plc
Graham Stewart
Tel: +44 (0)1224 650 920
Panmure Gordon
Ashton Clanfield
Katherine Roe
Tel: +44 (0)20 7459 3600
Financial Dynamics
Jonathon Brill/Billy Clegg/Edward Westropp
Tel: +44 (0)207 269 7157
Notes to Editors
The Company is actively building a balanced portfolio of operated and
non-operated exploration and appraisal properties, with significant
stakes and an active work programme. Faroe Petroleum has through
successive licence applications and acquisitions built a substantial
portfolio of exploration, appraisal and development assets across the
Atlantic Margin, the UK and Norwegian North Sea and the Norwegian
Sea. The licence portfolio provides considerable spread of risk and
reward, encompasses over fifty licences with eight licences West of
Shetlands, six licences offshore the Faroe Islands, six licences in
the Moray Firth area of the UK Central North Sea, eleven licences in
the Southern gas basin and twenty three licences in the Norwegian
North Sea and Norwegian Sea. Faroe Petroleum joint venture partners
include BP, Chevron, ConocoPhillips, DONG, DSM, Eni, E.ON Ruhrgas,
GDF, Oilexco, OMV, RWE, Shell and Statoil all of which have an
outstanding track record in oil and gas exploration and development.
The Company is well financed and is pursuing an active, fully funded
drilling programme with wells in each of its core areas being drilled
over the coming 18 months.
Faroe Petroleum is quoted on the AIM Market of the London Stock
Exchange with offices in Aberdeen, Stavanger and Torshavn. The
Company has a highly experienced team of professionals focused on
creating exceptional value for its shareholders.
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