DONG, Faroe agree North Sea asset swap

Faroe Petroleum is exchanging various field interests in the Norwegian North Sea with DONG Energy E&P Norge.

Offshore staff

ABERDEEN --Faroe Petroleum is exchanging various field interests in the Norwegian North Sea with DONG Energy E&P Norge.

DONG will take Faroe's 10% stake in the Trym gas field, currently undergoing development approval. In exchange, Faroe gains 9.3% and 1.86% shares respectively in the producing Glitne and Enoch oil fields.

It will also receive up to NOK 40 million ($6.2 million) in cash, half of which is payable once defined production targets have been accomplished at Trym.

Glitne, which came on stream in 2001, produces through subsea wells tied back to the FPSOPetrojarl I. Current output is around 7,000 b/d (around 650 b/d net to Faroe).

New seismic was acquired last year to identify remaining oil and potential new in-fill well locations, and 4D seismic interpretation is in progress.

Enoch, operated by Talisman Energy, is nearby on the Norway/UK median line. It produces via a single subsea well connected to Marathon's Brae A platform, 14 km (8.7 mi) to the west.

Production last year averaged around 8,000 b/d following implementation of gas lift. Faroe's share will be around 150 boe/d, with potential for further production increases following facilities investment.

05/19/2009

More in Company News