Faroe Petroleum brings Tambar wells into production in Norway

STAVANGER -- Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, has announced that both new infill wells drilled this year on Tambar field in Norway (Faroe 45%), have now been brought successfully into production. We also provide an update on the Fogelberg well operation, in which a technical sidetrack will now be drilled ahead of the potential Drill Stem Test (DST) to test reservoir productivity.

Highlights:

• The two new Tambar development wells have been completed and put on stream, with initial performance exceeding pre-drill expectations1. During the 14 days since both new wells have been on stable production, Tambar field has produced at an average flow rate of c. 18,507 boed (Faroe 8,328 boed)
• On April 20, 2018, Faroe reached a record net production level of 19,275 boed
• 2018 production guidance currently remains unchanged at 12-15,000 boed

The Tambar development project consists of two new infill wells, both of which have now been completed and put on stream, and the installation of gas lift in three existing wells, which is expected to complete in third-quarter 2018, to increase overall field life, production and reserves. The two infill wells successfully targeted undrained areas in the north and south of Tambar, which had been identified through application of a number of different modelling techniques, including 4D seismic technology. The initial flowrates from the two infill wells have exceeded pre-drill expectations. During the fourteen days since April 12, 2018, when both new wells achieved stable production, Tambar field produced at an average flow rate of c. 18,507 boed (8,328 boed net to Faroe).

On April 20, 2018, Faroe reached a record net production level of c 19,275 boed. The 2018 overall production guidance currently remains unchanged at 12-15,000 boed average for the year. The higher rate of production resulting from the new Tambar wells counters the lower than expected overall production in first-quarter, notably in relation to the previously announced temporary loss of production from Trym field, caused by a downstream export fault which has now been rectified, and the scheduled cessation of production from Oselvar, for which the Company is being compensated.

Fogelberg DST

On April 10, 2018 the Company provided an update on the preliminary results of the Fogelberg appraisal well in the Norwegian Sea (Faroe 15%), confirming a deeper gas-water contact and better than expected reservoir. For operational reasons, the joint venture has reverted to the original plan to drill a sidetrack well with a potential DST to test reservoir productivity. A further update on the well results will be provided upon the completion of drilling operations.