Faroe Petroleum claims success in well sidetrack, production test in Nowegian Sea

NORWAY -- 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 a successful sidetrack well (6506/9-4 A) and successful production test (‘Drill Stem Test’, ‘DST’) following the drilling of the downdip appraisal well (6506/9-4 S) on Fogelberg located in the Norwegian Sea (Faroe 15%1).

The Fogelberg discovery has now been successfully appraised confirming sufficient well productivity and reservoir connectivity capable of delivering commercial rates from the planned horizontal gas producers.

Highlights

• Successful sidetrack and successful production test in well 6506/4 A
• The sidetrack well penetrated 58 m of gross hydrocarbon-bearing Garn sand-rich reservoir and 87 m of gross hydrocarbon-bearing Ile reservoir
• During the DST, the well flowed at a maximum constrained and stable rate of 21 mmscf/day and condensate at 547 bpd (aggregate 4,047 boepd) on choke 22/64” for 24 hr with no signs of depletion
• Fluid sampling on the rig during the DST confirmed both high quality gas and condensate, and a condensate yield in the expected range. The fluid samples will also be used to refine the design basis for the planned subsea tie-back to Åsgard B
• An update on the volumetrics will be provided after the newly acquired data has been fully interpreted and incorporated into an updated Fogelberg reservoir model. However, preliminary analysis suggests a resource range of 40-90 mmboe gross
• Development planning studies for the Fogelberg subsea tie-back to the Åsgard B host are expected to start in H2 2018

The sidetrack well, located 0.8 km from the initial wellbore and 1.7 km from the discovery well, was drilled to 4,497 metres TD, targeting the gas- and condensate-bearing Middle Jurassic Garn and Ile formations. The main objectives were to assess the productivity of the Garn Formation and to firm up the resource range for a commercial development.

Fogelberg is located 18 km north of the producing Åsgard Complex, where large quantities of gas and condensate have been and continue to be produced and transported to several landing points on the European continent.

The Fogelberg appraisal well was drilled with the Island Innovator semi-submersible drilling rig, and the joint venture partners are Spirit Energy Norge AS (operator 51.7%), PGNiG Upstream Norway AS (20%) and Dyas Norge AS2 (13.3%). The appraisal well will now be plugged and abandoned as planned.

Graham Stewart, chief executive of Faroe Petroleum commented:

“We are pleased to announce the successful drill stem test at the Fogelberg sidetrack which further derisks the Fogelberg project. By the end of the year, we expect to have commenced development planning on the tieback to Åsgard B and we aim to move the 2C contingent resources to 2P reserves.

“We look forward to an exciting programme of five exploration wells in the period ahead which we expect to commence with the Faroe-operated Rungne well, which will be followed back to back with the Faroe-operated Brasse East well.”