Three wells in prospect off the Faroes

The Faroe Islands’ Minister of Trade and Industry Johan Dahl has approved extensions for three hydrocarbon exploration licenses.

Offshore staff

TORSHAVN, Faroe Islands – The Faroe Islands’ Minister of Trade and Industry Johan Dahl has approved extensions for three hydrocarbon exploration licenses. Included in this agreement is a firm commitment for an exploration well.

The licenses are 006, 009, and 011, but no decision has been taken yet as to where the well will be drilled. However, it will be drilled and evaluated prior to expiry of the license periods in 2013.

In License 006, the partners are Statoil Faroes (operator - 99%) and Atlantic Petroleum (1%). The Ministry says that 58% of the acreage has been relinquished in connection with the extension. Anadarko, Amerada Hess, British Gas, Dong, and Enterprise have withdrawn from the license.

In License 009, Statoil Faroes has taken a 100% interest - Dong, Shell, and Faroe Petroleum have opted to exit. In License 011, Statoil Faroes will maintain its 100% interest.

“It is very encouraging that Statoil and Atlantic Petroleum share our perception of the potential in the Faroese sub-soil and commit to yet another exploration well,” Dahl said. “The fact that the licensees have not yet decided in which license the well will be drilled can also be considered as a positive indication of the potential in the three licenses.”

In the last month two wells have been committed, making a total of three future exploration wells in the Faroese area. The first to be drilled is the ENI-operated well in License 005 and this will be spud this spring.

02/15/2010

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