Faroe Petroleum Confirms Gas Condensate Discovery at Rodriguez Well

Faroe Petroleum Confirms Gas Discovery at Rodriguez Well

Faroe Petroleum has announced that further results from the Rodriguez exploration well in PL475 (6407/1]6S) (Faroe 30%) have confirmed a significant gas condensate discovery in the Lower Cretaceous interval.

The Rodriguez prospect is located in the APA 2007 license PL475 on the Halten Terrace in the Norwegian Sea four kilometres north-east of the Tyrihans field and eight kilometres south-east of the Maria discovery (made by Faroe in 2010).

On 16 January 2013, the Company announced that hydrocarbons may be present in the well’s secondary target, the shallower Lower Cretaceous intervals, where samples had been acquired and were the subject of further analysis. The Operator has now confirmed the discovery of moveable hydrocarbons in these sandstone layers in the Lange formation, which contain an estimated gas condensate column of nine metres net pay and where it is interpreted that the reservoir at the edge of its lateral extent has been penetrated. The Operator’s preliminary volumetric estimates of the size of the discovery are between 19 and 126 million barrels of recoverable oil equivalent (net to Faroe c.6 ] 38mmboe). This is the first exploration well drilled on the Rodriguez license PL475 and further appraisal will be required to establish the lateral extent and size of this discovery.

Faroe Petroleum already has the Fogelberg gas discovery in the Norwegian Sea, which is being matured towards a development decision to coincide with gas export capacity becoming available in the Norwegian pipeline system in a few years time. In this context, it is noted that the Norwegian Authorities have recently proposed a significant reduction in gas transportation tariffs for new gas field developments. This proposal is now in a consultation process, to be completed by 15 March 2013. If introduced, this change to tariffs would significantly improve project economics both of Fogelberg and this new gas condensate discovery.

Graham Stewart, Chief Executive of Faroe Petroleum, commented: “We are very pleased to announce this gas condensate discovery on the secondary target of this Norwegian Sea exploration well. This significant discovery gives the partnership a good indication of further upside potential on the rest of the licence block with at least two further matured and partially derisked prospects and we look forward to its further appraisal.”

The drilling operation was undertaken by Wintershall Norge AS (50%) as operator, using the Transocean Arctic drilling rig, the other partner being Centrica Resources (Norge) AS (20%).

Press Release, January 31, 2013


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