Faroe takes controlling stake in Clapton license

Faroe Petroleum is set to take on its first operatorship in the Norwegian sector. The company has reached agreement with Det norske oljeselskap, to acquire a further 20% of license PL440S in the North Sea.

Offshore staff

ABERDEEN, UK -- Faroe Petroleum is set to take on its first operatorship in the Norwegian sector.

The company has reached agreement with Det norske oljeselskap, to acquire a further 20% of license PL440S in the North Sea. Subject to approval from the Norwegian authorities, this will increase the company’s interest from 20% to 40%, also securing operatorship.

The partners, who also include Noreco, Lundin Petroleum, and Dana Petroleum, have committed to drill the Clapton prospect, operations probably getting under way in late 2011 or early 2012.

Faroe says the license, awarded under Norway’s 2006 APA round, is in a prolific area close to the Ekofisk, Valhall, and Eldfisk, which hold reserves of 6-7 Bbboe. The location is on the eastern edge of the Lindesnes Ridge, 25 km (15.5 mi) from Faroe’s PL006C South East Tor discovery.

Clapton is on the edge of the Mode Dome, a salt-induced structure previously explored in the 1980s. The main targets in the structure are the Upper Cretaceous Hod, Tor, and Ekofisk formation, a proven reservoir in the central graben which, according to Faroe, exhibits good flow properties through the matrix as well as secondary fracture network development.

08/17/2010

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