Centrica finds no oil at Butch South West well

Faroe Petroleum has announced that drilling has reached target depth on the Centrica-operated Butch South West exploration well 8/10-6S which follows up the Butch East well and the Butch Main discovery (Faroe 15%).

The Butch South West exploration well 8/10-6S spudded in early June 2014 and reached total depth of 1,945 metres in the Permian Zechstein salt formation. The well targeted sandstones of the Upper Jurassic reservoir of the Ula formation and whilst a good quality reservoir was confirmed with a 55 metre gross section, no hydrocarbons were encountered.

The Butch South West drilling operations were undertaken by Centrica (40%) using the Maersk Giant jack-up drilling rig, together with the other joint venture partners Suncor Norge AS (30%) and Tullow Oil Norge AS (15%). Well 8/10-6S will now be plugged and abandoned.

The operator is currently working on a development plan for the significant Butch Main discovery, with concept selection expected in early 2015.

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

“Whilst it is disappointing that the eastern and south western flanks of the Butch salt structure have not added further resource, the focus of the joint venture is now turning to commercialising the Butch Main oil field. Plans to develop Butch Main are already advanced and we look forward to reporting further progress on this important oil field in the coming months.

“In the meantime, following a very busy period of exploration drilling for the Company, we expect to announce the results of the Bue side-track exploration well in Norway in the coming days.”