Faroe Petroleum commits to new North Sea exploration well

The AIM-traded company said that a rig contract has been awarded and drilling operations are expected to start in the fourth quarter of 2018 following the identification of significant hydrocarbon potential in the vicinity of the eastern flank of the Brasse field off the coast of Norway.

The newly announced well brings the total number of exploration and appraisal wells planned for the year up to six.

Graham Stewart, chief executive of Faroe Petroleum, said: "The Brasse development programme continues apace as we work towards concept selection by year end. If successful the Brasse East well could contribute significant additional hydrocarbons, thereby potentially adding further value to this attractive flagship development project."

Success at the well could see some 30m barrels of oil resources added to the project and brought into the overall development.

"We await results of the ongoing side-track and potential flow testing operations at the Fogelberg field. We are also preparing for drilling of the exciting, high impact Faroe-operated Rungne exploration well, our next exploration well, scheduled to spud in late summer," said Stewart.

As of 1625 BST, Faroe Petroleum’s shares were down 3.92% at 142.20p.