Faroe Petroleum is giving up the ghost on its P1161 licence (Freya and Fulla), west of Shetland, in which it has a half-share and is the operator.
Analysis of the results from an exploration well (206/5a-3) drilled on the Fulla prospect back in July confirm relatively poor oil quality, smaller than expected resource size and limited access to infrastructure. No economically viable solution has been found to bring these discoveries to development at this time, and consequently the licence will be relinquished.
In the meantime the company, which is focused on exploration, appraisal and production opportunities in the Atlantic Margin, the North Sea and Norway, awaits the results of two UK exploration wells currently being drilled, namely the N. Uist well, in which it has a 6.25% stake, and the Spaniards East well; the former is in the region west of Shetland the latter is in the UK bit of the North Sea.
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"The high potential West of Shetlands area continues to be a core element of Faroe Petroleum's strategy. The company has considerable knowledge and experience in this important region, holding a large portfolio position there, including the Glenlivet and Tornado gas discoveries, which are progressing towards development," Graham Stewart, Chief Executive Officer of Faroe Petroleum noted.
