Faroe noted that the PL271 and PL302 licenses contain the Yoda prospect. An exploration well to target the prospect is expected to commence drilling activities. The licenses also contain two additional prospects, the Vader and Agira prospects.
The joint venture partners in these Norwegian licenses include StatoilHydro with a 40% operator stake, Talisman Energy with 30% and Noreco with a 15% retained interest.
This transaction is reportedly in line with Faroe’s stated strategic objectives of building a portfolio of valuable licenses in Norway and participating in high impact exploration wells.
The Yoda prospect will be drilled by StatoilHydro using the Maersk Giant rig. Faroe has agreed to carry Noreco’s well cost obligations in respect of the Yoda exploration well, in return for a 15% share in the license.
Graham Stewart, Faroe Petroleum’s CEO, said: I am very pleased to be able to announce this transaction which secures Faroe a material stake in two high-quality licenses with significant prospectivity, and adds a further near-term well to our already exciting drilling program. We are delighted with the continued focused expansion of our Norwegian portfolio, which now comprises 18 licenses, and complements our significant UK and Atlantic margin positions.
