Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, is pleased to announce results of an update of the independent technical report by Senergy (GB) Limited.
LR Senergy have completed their independent technical report on Faroe’s reserves for 2015, and the 2015 year-end numbers are materially higher than those reported for year-end 2014. Proved plus Probable 2P reserves net to Faroe at 1 January 2016 have been estimated at 60.6 mmboe, representing an increase of 98.0 per cent. as compared to 30.6 mmboe at 1 January 2015. The principal differences result from:
- Adding the Butch field in Norway (Faroe 15%) to 2P Reserves: in October 2015, the operator Centrica and partners announced that the Butch field will be developed as a subsea tie-back to the BP-operated Ula field. LR Senergy has assessed Butch 2P Reserves net to Faroe at 6.4 mmboe;
- Adding Pil field in Norway (Faroe 25%) to 2P reserves: LR Senergy has evaluated the progress that has been made by the operator VNG Norge AS and partners in maturing the Pil discovery towards project selection in 2016, and has also evaluated the development options, which have been demonstrated to be economically viable. On that basis, LR Senergy has concluded that the volumes associated with the Pil project can be categorised as 2P Reserves. These have been assessed at 23.8 mmboe net to Faroe. The Pil 2P Reserves do not include the volumes associated with the Bue and Boomerang discoveries, which are currently less mature technically and will remain as Contingent Resources for the time being;
- Further 2P Reserves have been added through the acquisition of Roc Oil (GB Holdings) Limited: LR Senergy have assessed 2P Reserves associated with the acquired 12.5% interest in the Blane Unit and 12.0% interest in the Enoch Unit at 1.6 mmboe;
- In addition, a number of positive technical revisions have allowed partial reserves replacement in the existing producing fields.
The table below presents the 2P Reserves net to Faroe by geographic location and split in terms of oil and liquids reserves and gas reserves. The reserves are reported in accordance with the Petroleum Resources Management System, the joint reserves/resources definitions of the Society of Petroleum Engineers, the World Petroleum Congress and the American Association of Petroleum Geologists.
|Area||Oil and LiquidsMMstb||GasBscf||TotalMMboe|
Faroe is in the process of completing its own internal assessment of reserves and resources at 1 January 2016 and will be announcing the outcome in the coming weeks together with an operational update to include estimates of production levels and planned expenditure for 2016.
Graham Stewart, Chief Executive commented:
‘I am very pleased to report this material increase in reserves over the year, generated principally from exploration success and which further underpins the significant value of the Company. This doubling of 2P reserves demonstrates clearly how our consistent strategy is delivering tangible results.
‘We look forward to an exciting three well exploration drilling programme for 2016 in Norway, which is firming up on cost efficient terms. Faroe enters 2016 in a robust financial position, with strong production, a solid cash balance and largely undrawn credit facilities.’
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