Faroe Petroleum Acquires Interest in Perth Oil Field Offshore UK

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic margin, the North Sea and Norway, is pleased to announce that it has acquired a 28% interest in each of UK licences P218 and P588 containing the undeveloped Perth oil field.

The Perth field is located 185 kilometres north east of Aberdeen in block 15/21c, which together with 15/21b (residual area) forms licence P588. Water depth at this location is approximately 130 metres and neighbouring infrastructure includes the Tartan platform seven kilometres to the North and the Scott platform 11 kilometres to the South East.

The Perth Field has remained undeveloped since its discovery by well 15/21a-7 in 1983, drilled by Monsanto. Three appraisal wells and one side-track have been completed on the field, the latest of which was drilled by Hess in 1997. The crude tested from the field’s Claymore sands has ranged in gravity from 29 to 32°API and has flowed at rates between 1,000 and 6,000 barrels of oil per day with associated sour gas.

Faroe Petroleum is working closely with the operator, Deo Petroleum to address technical challenges relating to development of the Perth field, and will investigate further exploration and appraisal opportunities on the licence block, in advance of progressing to a field development decision.

Faroe Petroleum is acquiring this 28% interest from Nexen Petroleum U.K. Limited and completion is subject to consent of the joint venture parties, the waiver of pre-emption rights and U.K. Department of Energy and Climate Change approval.

The other joint venture parties in the licence are Deo Petroleum UK Limited (operator, 42.08%), Maersk Oil UK Limited (19.13%) and Atlantic Petroleum UK Limited (10.79%).

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

”We are very pleased to announce this acquisition, which fits Faroe Petroleum’s strategy of securing suitable opportunities which draw upon the skills and experience of our technical team with the aim of adding significant upside value. To that end, the Company intends to play a key role in assessing the sub-surface potential, ahead of a field development decision.

The Perth field has the makings of becoming an important new field development in the near term, with scope to tie-back several additional undeveloped discoveries as well as offering exploration upside in the area.”

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Source:Faroe Petroleum, January  13, 2011; Image: Nexen