Offshore staff
ABERDEEN, UK --Faroe Petroleum is set to gain interests in three North Sea licenses, following a proposed asset swap with Germany's E.ON Ruhrgas.
Subject to approval from the UK and Norwegian governments and the various license partners, Faroe will cede half its 30% interest in the Norwegian license PL433, Fogelberg Fogelberg, which it secured under Norway's 2006 APA licensing round.
E.On Ruhrgas will also receive from Faroe a $13.98 million cash consideration and a well carry. In exchange, Faroe will gain a 4.83% interest in the producing Schooner gas field and a 7.53% stake in the undeveloped Topaz gas field (both in the UK sector); and 10% of Norwegian North Sea license PL376.
According to Faroe, Topaz, a 32bcf accumulation operated by RWE Dea, will likely be developed via a single-well tieback to Schooner and the Caister-Murdoch transport system. Production should start early in 2009.
No wells have been drilled on license PL376, comprising block 35/6 and part-block 35/9. However, the partners have identified numerous prospects in structural and stratigraphic closures, with Jurassic and Lower Cretaceous objectives. There is a commitment to drill and complete a Jurassic well by January 2009 – this is the part-funded well covered under the transaction.
11/30/2007
