Faroe Petroleum Makes Oil and Gas Discovery

Published at 08:03AM - 18/10/16

Faroe Petroleum announced an oil and gas discovery at the Njord North Flank in the Norwegian Sea, where it holds a 7.5% stake.

The well and side-track well drilled are located approximately 3.7 miles to the north of the Njord production facility.

“We are pleased to announce this oil and gas discovery on the Njord North Flank, Faroe’s second discovery of the year, following our significant Brasse oil and gas find announced in summer, which is also located very close to infrastructure,” Faroe Petroleum CEO Graham Steward, said.

Faroe Petroleum Makes Oil and Gas Discovery

Following the drilling of exploration well NF-2, a side-track well was drilled to test a fault-block lying to the east, with another oil and gas find.

Based on the extensive data acquisition and sampling performed on both wells, Faroe Petroleum announced a preliminary estimate of between 1.3 and 18.9 million barrels of oil equivalent (mboe) for NF-2 and between 0.6 and 9.4 mboe for side-track NF-3.

Faroe Petroleum Makes Oil and Gas Discovery
Njord A being towed to Kvaerner’s Stord yard

Overall, this means the two discoveries are equivalent to a rage of 1.9 mboe to 28.3 mboe, which is line with pre-drill estimates, the company informed in a statement.

The well has now been plugged and abandoned as planned and the partners will start work on assessing the commercial potential of the discovery.

New Find Adds Reserves to Njord Future Project

 “This new Greater Njord Area discovery builds on Faroe’s already significant position in this core area of the Norwegian Sea and has the potential to add further value and reserves to the Njord Future Project, which is scheduled to commence in early 2017,” Stewart added.

“The North Flank discovery has also benefitted from low rig rates and hence drilling costs, which, coupled with the Norwegian exploration tax rate, has ensured Faroe’s cost exposure was very low and maintains our low finding costs”, he stated further.

According to the CEO, the company will now move on to the high impact exploration well on the Dazzler prospect located in the Barents Sea, where it holds a 20% stake.

“Dazzler will be operated by Eni and is scheduled to spud around year-end,” he explained.