Faroe Petroleum's North Uist well falls short of expectations

Faroe Petroleum's Chief Executive Graham Stewart said on Friday he had hoped for a 'better quality reservoir' at the North Uist exploration well as it was plugged and abandoned.

The company discovered gas condensate at the well, located west of Shetland, after reaching a total vertical depth of 4,700 metres.

However, preliminary results indicated varying reservoir quality and the commercial potential is yet to be evaluated.

Extensive data has been collected and a formation and volume evaluation is underway.

BP Exploration Operating Company was in charge of the drilling operation.

To manage the typically higher well costs in this region, Faroe secured a financial carry of a portion of the well costs through farm-out arrangements and a relatively low retained licence equity.

"After a long period of drilling activity on this wild-cat exploration well, we are pleased to have made a discovery in the North Uist exploration well, although we had however hoped for better quality reservoir," said Chief Executive Graham Stewart.

"The result proves another working hydrocarbon system in the frontier west of Shetlands which is good news for further prospectivity in these UK waters. The partnership will now undertake extensive analysis of the considerable volumes of data and samples collected from the well operations before deciding on the next steps."

RD