Spring farms into Norway licenses

Faroe Petroleum has entered into a farm-down agreement with Spring Energy related to two Norwegian sector licenses.

Offshore staff

ABERDEEN, UK --Faroe Petroleum has entered into a farm-down agreement with Spring Energy related to two Norwegian sector licenses.

Spring is acquiring a 15% share from Faroe in PL405 and PL405B, leaving Faroe with similar equity in the two licenses. In exchange, Spring will carry Faroe's costs associated with the first exploratory well on the acreage.

The licences were awarded to Faroe under Norway's 2006 and 2007 APA rounds, and include several Upper Jurassic Ula formation prospects. The transaction is contingent on support from the Norwegian authorities, operator Centrica Norge, and partner Petro-Canada Norge.

3/5/2009

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