Faroe Petroleum Announces Results of Darwin Exploration Well

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, announces the results of the Darwin frontier exploration well (7218/11-1) (Faroe 12.5%).

The objectives of the well, which is the first to be drilled in this Norwegian Barents Sea licence, were to prove hydrocarbons in the Paleocene and Upper Cretaceous reservoirs. Gas shows were recorded in the Paleocene interval although no hydrocarbons were found in the Cretaceous and accordingly the well has been declared dry. An extensive data set has been collected, including wire-line logs, pressure data and side-wall cores and a full formation evaluation is underway.

The Darwin prospect is located on the Veslemøy High in the frontier western part of the Barents Sea approximately 60 to 80 kilometres to the south west of the recent significant Statoil Skrugard and Havis oil discoveries. The well was drilled to a total depth of 2,542 metres in the Lower Cretaceous. The well will now be permanently plugged and abandoned.

The drilling operations have been undertaken by Repsol Exploration Norge AS (20%) utilising the Transocean Barents semi-submersible drilling rig. The other joint venture partners are Talisman Energy Norge AS (12.5%), Marathon Oil Norge AS (10%), RWE Dea Norge AS (15%), Det norske oljeselskap ASA (10%) and Concedo ASA (20%).

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

“We are pleased that this frontier well proved the existence of a working hydrocarbon system in the licence area. It is disappointing that no hydrocarbons were present in the Cretaceous section at this location, however it does provide important new data and information which will allow further evaluation and de-risking of this extensive licence in the Barents Sea province in which Faroe has a strategic position.

“Looking ahead, Faroe’s extensive and diversified northern seas portfolio is delivering an exciting, fully funded exploration and appraisal drilling programme for 2013 and beyond. This year we have five further wells planned with three exploration wells scheduled in Norwegian waters on Snilehorn, Novus and Butch East (with a further well to be drilled back to back on Butch South West in 2014, to follow up last year’s significant Butch oil discovery), and two appraisal wells, one on Perth North (UK) to prove up more resource in the Perth licence and one on Solberg (Norway) to appraise the recent Rodriguez discovery.

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Press Release, April 8, 2013