UK-based explorer Faroe Petroleum has awarded a rig contract for the drilling of Brasse exploration well in the Norwegian North Sea.
The firm also says production has restarted from the Enoch field, in which it has a 13.86% stake.
The rig for the Brasse well will be the Transocean Arctic semisubmersible drilling rig, which is currently drilling the Ornen well for Lundin in the southern Barents Sea. Faroe has budgeted its net share of the well costs (50%) after tax to be less than £2 million, and the well is expected to be drilled in the summer of 2016.
Brasse will test a structure immediately to the south of the producing Brage field and if successful could be tied-back to Brage (Faroe 14.3%) or alternatively to other nearby installations.
The co-venturer in the PL740 license is Core Energy (50%).
Production from the Enoch field in the UK North Sea was saw an extended period of shut-in for repair and maintenance. Initial production rates have been encouraging.
Faroe recently increased its interest in the Enoch field from 1.86% to 13.86% for a nominal consideration. The Enoch field, operated by Talisman Sinopec Energy UK, has been developed as a single well subsea tie-back to the Marathon-operated Brae field.
Graham Stewart, Faroe's CEO, says: “We are very pleased to announce the signing of the drilling contract for this exciting Faroe-operated exploration well – one of three exploration wells in Faroe’s drilling program for 2016 in Norway. The Brasse prospect will be drilled using the Transocean Arctic, which is the same rig as we used to make the Pil discovery in 2014. Faroe has taken the opportunity to capitalize on the low cost environment to drill a material prospect which offers real potential for an early and low cost tie-back to the Brage field in which Faroe is an owner.
“Despite the challenging industry backdrop, Faroe is robust with a strong cash position and balance sheet, and continues to perform very well, with production in line with our increased guidance. We look forward to an exciting three well exploration drilling program for 2016 in Norway, which is firming up on cost efficient terms, and continue to evaluate the potential to take advantage of further good quality growth opportunities.”
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