Faroe Petroleum plc Announces Results of the Skirne East Exploration Well in Norway
Apr 10 15
Faroe Petroleum announced the results of the Skirne East exploration well (Faroe 20%) in Norway. Highlights: The Total E&P Norge AS operated Skirne East exploration well 25/6-5S, in the Norwegian North Sea is a gas discovery, which encountered a net 10 metre gas column in the high quality Middle Jurassic Hugin formation; The preliminary volumetric gross estimate of the size of the discovery is 3 to 10 million barrels of oil equivalent ("mmboe") recoverable (0.6 to 2.0 mmboe net to Faroe). Exploration well 25/6-5S has encountered a net gas-bearing reservoir section estimated at 10m in the Middle Jurassic Hugin formation, confirming hydrocarbons at the same reservoir level as in the adjacent producing Skirne field. Reservoir properties were found to be excellent and extensive data gathering has been conducted. The Skirne East exploration well 25/6-5S spudded on 13 March 2015 and was drilled to a total depth of 2,366 metres below sea level. The Skirne East discovery in Licence PL 627 is located in the Norwegian North Sea on the northern part of the Utsira High approximately 5 kilometres from the Total operated producing Skirne field. The partners are Total (40%), Centrica Resources Norge AS (20%) and Det norske oljeselskap AS (20%). The Skirne East exploration well will now be plugged and abandoned as planned.
Faroe Petroleum plc Announces Audited Preliminary Group Earnings Results for the Year Ended December 31, 2014
Mar 24 15
Faroe Petroleum plc announced audited preliminary group earnings results for the year ended December 31, 2014. For the year, the company’s revenue was £129,222,000 against £129,387,000 a year ago. Operating loss was £152,639,000 against operating profit was £20,971,000 a year ago. Loss on ordinary activities before tax was £165,796,000 against profit on ordinary activities before tax of £10,024,000 a year ago. Loss for the year was £54,981,000 or 22.6 pence per diluted share against profit for the year of £14,074,000 or 6.0 pence per diluted share a year ago. The loss before and after tax year-on-year is due primarily to the higher exploration write-offs and impairment charges on producing assets in the year ended 31 December 2014. Net cash generated from operating activities was £71,404,000 against £118,940,000 a year ago. Purchases of intangible and tangible assets were £136,019,000 against £121,990,000 a year ago. Exploration and evaluation expenses for the year were £139,374,000 compared to £22,233,000 a year ago. This includes pre-award exploration expenses of £7.7 million and write-offs of licence-specific exploration and evaluation expenditure on previously capitalised licences where active exploration has now ceased was £131.7 million.
Faroe Petroleum plc Announces Spudding of the Shango Exploration Well 25/6-5S
Mar 16 15
Faroe Petroleum plc announced the spudding of the Shango exploration well 25/6-5S (Faroe 20%). The Shango prospect in Licence PL 627 (named Skirne East by the operator Total E&P Norge AS (Total)) is located in the Norwegian North Sea on the northern part of the Utsira High approximately 5 kilometres from the producing Skirne field, which is also operated by Total. Shango is a structural prospect where the primary target is the Middle Jurassic Hugin formation reservoir, which has proved to be of excellent quality in the neighbouring Skirne field. Shango is located on the spill-route from the Skirne field which is producing above expectations and has been interpreted to be filled to spill. A fast-track subsea development to the Skirne field is planned if the prospect is found to contain a similar gas and condensate hydrocarbon type as found in Skirne. Skirne has been developed as a tie-back to the Statoil-operated Heimdal platform approximately 24 kilometres to the west. The Shango exploration well, located in approximately 120 metres of water, is being operated by Total (40%) using the Leif Eriksson drilling rig with partners Centrica Resources Norge AS (20%) and Det norske oljeselskap AS (20%). Results from the well will be announced when drilling operations are complete.