The Palaeocene reservoir was encountered close to prognosis, with the upper reservoir section drilled with good indications of a gas filled sand, which was subsequently confirmed by open-hole wireline logs. Preliminary log analysis indicates a net gas column of 201 feet and excellent reservoir quality. The average porosity in the penetrated reservoir section is high and permeability is also expected to be very high.

Further analysis of the results is underway and the drilling of a potential immediate side track well on the discovery is currently being evaluated by the partnership, with a decision expected in the next two days. Whilst it is too early to assess the commerciality of the discovery, if proved to be commercial, Glenlivet could become a significant part of the planned new UK west of Shetland gas gathering system for which the Total-operated Laggan gas field is the focal point. Glenlivet is situated about 15 kilometers from the proposed Laggan gas export pipeline to Sullom Voe in the Shetland Islands, and Glenlivet license operator DONG E&P is also a 20% equity partner within the Laggan development project. The Glenlivet license also contains another gas discovery, Laxford (Faroe Petroleum 10%) and a number of further potential exploration targets, all situated close to the Glenlivet discovery. Some of these additional opportunities may also have the potential to be commercialized through the planned new UK west of Shetlands gas gathering system.

Graham Stewart, chief executive of Faroe Petroleum commented: “We are very pleased to report the successful outcome of this strategically important exploration well. Glenlivet is Faroe’s first Atlantic Margin discovery and confirms the presence of a significant accumulation of hydrocarbons in a high quality reservoir. We look forward to providing a further update on the results of the Glenlivet well analysis in the near future”.

“The Glenlivet well is the first of a firm five-well Atlantic Margin exploration drilling programme which Faroe is undertaking over the coming months. The second well in the programme, operated by OMV, is scheduled to commence drilling by the end of September 2009 and will test the Tornado oil prospect, located close to BP’s producing Schiehallion field. Following Tornado we are scheduled to drill three further high impact exploration wells, the Anne Marie oil prospect in the Faroes (operated by Eni), the Cardhu oil prospect in the UK (operated by BP) and the Lagavulin oil prospect in the UK (operated by Chevron)”.