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Centrica begins drilling at Butch South West well

ABERDEEN, United Kingdom -- Faroe Petroleum has reported the spudding of the Centrica-operated Butch South West exploration well 8/10-6S.

Butch South West, which is adjacent to the company' s 2011 Butch discovery, is situated in approximately 65 m water depth in the Norwegian North Sea, close to significant existing infrastructure with the giant Ula field approximately seven kms to the northwest, Tambar approximately ten kms to the southwest and Gyda approximately 20 kms to the south.

The significant Butch Main oil discovery was made in late 2011 and contains a light crude oil in a high quality reservoir, the Upper Jurassic reservoir of the Ula formation. The Butch South West exploration well is located in a separate segment from both the Butch East well and the Butch Main well.

The operator is currently working on a development plan for the Butch Main discovery, in parallel with drilling the Butch South West well. If Butch South West is successful the development has the potential to become a stand-alone design, with its own dedicated facility, instead of a subsea tie-back to existing nearby infrastructure.

The Butch license drilling operations are operated by Centrica (40%) using the Maersk Giant jackup drilling rig, together with the other JV partners Suncor Norge (30)%, Faroe (15%) and Tullow Oil Norge (15)%.

Graham Stewart, CEO of Faroe Petroleum commented: "We are pleased to announce the spudding of the Butch South West exploration well, which, if successful, offers the potential to add substantially to the volumes and value of the Butch field, as the adjacent Butch Main field is already on track for near-term development.

"In the near term we also look forward to reporting the results from exploration drilling on the Bue prospect (Faroe 25%) in the Norwegian Sea in close proximity to the recently reported significant Pil oil and gas discovery."



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