Faroe Petroleum awarded new licence in Irish Atlantic margin

Oil and gas company Faroe Petroleum was awarded a new three-year licence option in the Irish offshore by the 2015 Atlantic margin licensing round (AMLR).

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The 16/23 licensing option covers 960km in the Slyne/Erris Basin. It is one of the second tranche of awards made under the AMLR.

Faroe Petroleum operates the licence and has a 100% working interest in it.

The operating licence is about 280 meters of water and is about 15km east of Royal Dutch Shell’s Corrib gas field, which went on-steam at the end of 2015.

The AIM listed company said its main objective was to improve the seismic image of the company by applying recent advances in modern seismic reprocessing techniques, which will be carried out alongside other geological tests.

"We are pleased to have been awarded this licensing option, offshore Ireland, where we see attractive prospectivity in the same play as the significant Corrib field.” said chief executive Graham Stewart.

“We now have an opportunity to screen potentially significant exploration targets, close to the producing Corrib field, using our extensive knowledge and experience in seismic reprocessing and interpretation. If the results of the initial work programme are successful and prospectivity is firmed up, the next steps would be to commit to the acquisition of new seismic data and bring in suitable partners ahead of potential exploration drilling.”

Shares in Faroe Petroleum rose 1.52% to 67p at 1448 BST.