Faroe Petroleum, an independent oil and gas company, has announced the award of a rig contract for the drilling of the Brasse exploration well in the Norwegian North Sea.
Faroe is the operator of the Brasse prospect with 50% interest.
In addition, the company announced a re-start of oil production from the Enoch field in the UK North Sea where the company has 13.86% interest.
Rig for Brasse drilling
Faroe has entered into a contract with Transocean on behalf of the PL 740 joint venture for the lease of the semi-submersible Transocean Arctic drilling rig. Faroe has budgeted its net share of the well costs after tax to be less than £2m ($3m), and the well is expected to be drilled in the summer of 2016, the company said.
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 licence is Core Energy AS (50%).
Graham Stewart, Chief Executive of Faroe Petroleum commented: “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 programme 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 capitalise 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.”
Enoch resumes production
Production from the Enoch field in the UK North Sea has restarted following an extended period of shut-in for repair and maintenance.
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.
Stewart also said: “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 programme 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.”