Faroe, Tullow complete North Sea transaction

Faroe Petroleum has completed the acquisition of a 53.1% operated interest in the Schooner Field and a 60% operated interest in the Ketch Field in the UK Southern North Sea gas basin  from Tullow Oil.

Remaining Proved and Probable Reserves, as evaluated by the Faroe Petroleum, as at 1 January 2014 were 5.9 million barrels of oil equivalent (“mmboe”) net to Faroe Petroleum. Average economic production for the first six months net to Faroe Petroleum was approximately 3,700 boepd.

Graham Stewart, Chief Executive of Faroe Petroleum, commented: “We are very pleased to announce the completion of this acquisition, which broadens our production base further and both boosts and diversifies our oil and gas production portfolio. 

“Schooner and Ketch are good quality producing fields, well known to the Company and which offer upside potential in the form of increasing reserves, production and field life. The transaction is tax efficient for us, providing shelter for both past and future tax losses in the UK and is in line with our strategy to grow our production portfolio to continue the efficient funding of Faroe’s ongoing exploration and appraisal programme.”