Faroe Petroleum Acquires Stake in Blane Oil Field

Faroe Petroleum plc, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the Atlantic Margin, the North Sea and Norway, is  announced that it has completed the acquisition of the 18.0% interest in the Blane oil field from ENI UK Limited and ENI ULX Limited.

Graham Stewart, Chief Executive of Faroe Petroleum plc, commented:

“The acquisition of a material interest in the high quality producing Blane oil field significantly boosts Faroe’s oil and gas revenue generation capacity and is very tax efficient for the Company.”

“The transaction which adds approximately 1,900 barrels of oil equivalent per day (boepd) to Faroe’s production, is in line with our strategy to grow and strengthen the production base towards funding the ongoing exploration programme.”

Blane is an offshore oil field located in the southern Norwegian and northern British sectors of North Sea. The Blane facilities are located on the British continental shelf and are tied to the Ula field which is located 34 km (21 mi) to the northeast via subsea pipeline.The field was discovered in 1989 and produces high quality oil.

The Company is actively building a balanced portfolio of exploration, appraisal and production opportunities, with significant stakes and a fully funded, dynamic work programme. Faroe Petroleum has, through successive licence applications and acquisitions, built a substantial portfolio of exploration, appraisal, development and production assets across the Atlantic Margin, the UK and Norwegian North Sea and the Norwegian Sea.

The licence portfolio provides considerable spread of risk and reward, encompassing 40 licences located in the West of Shetlands, offshore the Faroe Islands, the UK North Sea and Norway. In addition Faroe Petroleum has interests in five producing oil and gas fields in the UK and Norway. Faroe Petroleum has extensive experience working with major oil companies and its joint venture partners include BP, Chevron, DONG, ENI, E.ON Ruhrgas, GDF, OMV, RWE Dea, Statoil and Wintershall. The Company has proprietary technical teams at the leading edge of seismic and geological interpretation, reservoir engineering and field development.

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Source:Faroe Petroleum , May 17, 2011;