Faroe Petroleum announces results of Spaniards exploration well

by on November 7, 2012 1:55 am BST

Faroe Petroleum announces results of Spaniards exploration well

Faroe Petroleum focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, announces the results of the Spaniards East exploration well Faroe 8.4% – free carried.

The Spaniards East well was drilled in UK block 15/21, reached a total depth of 10,694 feet and encountered 75 feet of Jurassic sands which were water wet. The well is now being plugged and abandoned.

The drilling operations were undertaken by Premier Oil as operator. Faroe Petroleum had a free carried interest of 8.4% in the well carried by Premier, Cairn and Serica and was not required to make any cash contribution to the dry hole cost of this well.

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

“Although the Spaniards East well carried a reasonably high level of risk, we agreed to participate, given the upside potential in the event of success, and the fact the well was drilled at no cost to Faroe Petroleum.”

“The paying partners approached Faroe, as part of the Perth group, to drill the Spaniards East prospect on a Faroe held licence located close to the undeveloped Perth oil field – Faroe 33.4%. Although the well was unsuccessful, the partnership has gained useful data from the well, which will further our regional knowledge”.

“In the meantime, Faroe will be participating in a very active ongoing drilling programme in 2013 and we also await the results from the BP operated North Uist exploration well, west of Shetland.”