As per the terms of the farm-out agreement, Faroe will retain a 50% interest in this license and operatorship, while COPL will acquire a 50% interest and pay a proportionately larger share of costs on the Fulla exploration well.
Licence P.1161 covering Blocks 206/5a, 10a is located approximately 10km to the north east of the producing Clair oil field and contains the Freya discovery and Fulla prospect.
The Fulla prospect is situated along the same structural trend immediately to the north east of Freya, in relatively shallow water of under 150m. The plan is to drill a vertical exploration well on the Fulla prospect in 2011.
The completion of the farm-out is dependent upon the release of monies from escrow, following COPL’s recent fund raising, and satisfaction of various conditions precedent, including DECC’s consent to the transfer of the license interest and acceptance of the well commitment.
