Statoil resumes Faroes exploration

Statoil will drill a well next year on previously unexplored acreage off the Faroe islands.

Offshore staff

(Europe) - Statoil has announced plans to drill a well next summer on the Brugdan prospect in Faroese license 006.

The program will be handled by the semisubStena Don, currently on long-term charter to Statoil in the Norwegian sector.

Concurrently, the partners in licenses 003 and 001, operated respectively by Statoil and Amerada Hess, have signed an agreement to farm into the 006 license.

The Faroese Petroleum Administration has allowed the two groups to offset their drilling commitments by participating in the planned wildcat.

Brugdan's well will be drilled to a total depth of 3,780 m, in around 450 m of water. The main target lies 70 km distant from the nearest discovery, Chevron's Rosebank, west of Shetland.

According to Statoil, the main difficulty to date has been interpreting what may lie beneath very thick sections of volcanic rock.

12/14/05

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