Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, has completed the sale of its 10% interest in the undeveloped Glenlivet gas field, West of Shetland, Scotland, to Total E&P UK Limited.
The Glenlivet field is located in UK Production License P1195 on Block 214/30, along the Atlantic Margin West of the Shetland Islands. Dong serves as the operator of the field and the firm holds a 80% interest. First Oil Expro holds 10% and Faroe Petroleum held the remaining 10%.
The consideration for the sale of the Glenlivet interest is £10 million (US$15.7 million), with an effective date of 1 January 2014, of which a proportion is deferred until the submission of the field development plan and certain production targets being achieved.
Graham Stewart, Chief Executive of Faroe Petroleum, commented:
“I am pleased to announce completion of the sale of our Glenlivet interest to Total – a transaction directly in line with our stated monetisation strategy to ensure we fully leverage our exploration to create maximum shareholder value."
“Faroe has a very exciting continuing exploration and appraisal programme to look forward to in 2015. Our unique and robust financial position ensures we can participate in another five well high impact campaign in Norway. This will target significant resource potential and is funded from a combination of cash flow from our significant production base and Norwegian state funding.”
Faroe is targeting a very active drilling programme throughout 2015 and 2016 and it currently has interests in four principal producing oil and gas fields in the UK and Norway, including interests in the Blane oil field in the UK, and interests in the producing Njord, Brage and Ringhorne East fields in Norway, which collectively produced on average 6,059 boepd (economic production) in 2013.
In November 2013 and March 2014 Faroe announced the Snilehorn and Pil discoveries in the Norwegian Sea in close proximity to the Hyme and Njord fields and in April 2014 the company announced the Solberg discovery in the Norwegian Sea. In July 2014 the Company announced the successful drilling of the Bue side-track well and provided an update of the resource range for the Pil and Bue discoveries of between 80 and 200 mmboe (gross). Faroe has an exceptional exploration and appraisal programme scheduled for 2015 with five wells planned, all in Norway, including two Pil follow up wells.