Faroe Petroleum Share Discussion Threads

[rogerlin] 11/7/2016 16:20

You would think that a deal could be done with the Brage partners, as Faroe are already in that group and the others (apart from Repsol I think) are co-venturers with Faroe in other licences. Also Point (Core) are already in Brage too.

[hashertu] 11/7/2016 15:43

Q about the First Energy note above.

Where has this recovery factor of 25-35% come from?
The RNS talks about recoverable resource, which implies to me that a recovery factor has already be assumed by FPM.
The 6p increase in NAV values the 30mm boe (mid range) FPM share at approx 50p/boe. This seems on the low side. Am I missing something?

[wbodger] 11/7/2016 10:44

FPM's current 2P Reserves (2015 AR) are 57.4 mmboe, 2C 98.3 mmboe

In OffshoreEnergy's coverage they headline GS's phrase, ie "options for monetising" etc. If FPM/Point do tie back to Brage, a settlement with PL185 would require an agreement on valuation. (Or similarly with PL055 if they use Oseberg Sor.) 'Monetising' suggests trading down for a carry on Development, and/or perhaps a cash settlement.

[taudelta1] 11/7/2016 08:01

Result, quite significant when compared with FPM's existing overall 2P & 2C .. GLA

[wbodger] 11/7/2016 07:38

Total gross volumes of recoverable hydrocarbons are estimated to be 28-54 mmbbls of oil and 89-158 bcf of gas (43-80 mmboe in aggregate).

50% of that ain't bad. 13 km from Brage platform, etc....

[cwa1] 11/7/2016 07:20

Brasse Oil and Gas Discovery - successful side-track appraisal and volume estimate

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal, development and production opportunities in Norway and the UK, is pleased to announce the completion of a successful side-track appraisal well on the Brasse discovery in licence PL740 in the Norwegian North Sea (Faroe 50% and operator).

The objective of the Brasse side-track well (31/7-1A) was to appraise the south-eastern part of the hydrocarbon bearing structure previously identified by the main discovery well. The Brasse side-track reached a total depth of 2,530 metres (MD) and encountered a 25 metre gross oil column and a 6 metre gross gas column. Results based on extensive coring, wireline logging and sampling show that the well has encountered oil and gas in good quality Jurassic reservoir sandstones, similar to those seen in the main well, and provide important information about the reservoir distribution in Brasse. The hydrocarbon-bearing interval in the side-track well was found to be at a similar pressure level to the hydrocarbon-bearing interval in the initial discovery well. Total gross volumes of recoverable hydrocarbons are estimated to be 28-54 mmbbls of oil and 89-158 bcf of gas (43-80 mmboe in aggregate).

As already announced, the Brasse discovery well (31/7-1) encountered approximately 21 metres of gross oil-bearing and approximately 18 metres of gross gas-bearing Jurassic reservoir. The reservoir is of good quality and believed to be analogous to the effective reservoir at the Brage producing oil field (Faroe 14.3%).

The Brasse discovery is located within tie-back distance to existing infrastructure: 13 kilometres to the south of the Brage field platform, in which the Company holds a 14.3% working interest, 13 kilometres to the east of the Oseberg Sør field platform, and 13 kilometres to the south east of the Oseberg field platform. Faroe and its co-venturer (Point Resources AS (50%)) will now begin assessing options for this discovery, located in one of Faroe's core areas in the Norwegian North Sea.

Graham Stewart, Chief Executive of Faroe Petroleum, commented:

"We are very pleased to announce the results of this successful side-track appraisal well on the Brasse discovery, which proves the hydrocarbon and reservoir distribution found in the main discovery well and delineates the lateral extent of the discovered area. This discovery, in one of our core areas, builds, via this low cost exploration and appraisal well, on Faroe's already significant position in the Norwegian North Sea. Work will now begin on assessing options for monetising this important new asset, given its significant resource estimates and close proximity to existing infrastructure."

[wbodger] 08/7/2016 10:13

Offshore-mag have quoted the new FPM web page about L016/23 verbatim.

The Licence area looks to be northeast of Corrib. L016/23 was not included on the March map of concessions, but it looks as if there is a trench or basin southeast of an Island Rockall JV licence, extending northeast from Corrib. 19/11-1A has been drilled on the south of the basin, and 19/8-1 to the northeast of it.

Download pdf of map:
hxxp://www.dcenr.gov.ie/natural-resources/SiteCollectionDocuments/Oil-and-Gas-Exploration-and-Production/A0_Concession_Map_Mar2016.pdf

[rogerlin] 08/7/2016 08:38

Tugs still in port so a few more days on the Brasse sidetrack.

[ftangftang] 08/7/2016 07:45

cheers
ft ft

[jusmasel99] 08/7/2016 06:59

Faroe Petroleum has provided details of its new licensing option 16/23, awarded under Ireland’s 2015 Atlantic Margin Licensing Round.
LO 16/23, which spans 960 sq km (370 sq mi) in 280 m (918 ft) of water in the Slyne/Erris basin, is 15 km (9.3 mi) east of the producing Corrib gas field operated by Shell, which came onstream at the end of 2015.
The main lead is a large tilted fault-block structure in which Triassic Sherwood sandstones (the same reservoir as in Corrib) are the principal reservoir target.
Faroe will focus on improvements to the seismic image, using recent advances in modern seismic reprocessing techniques, alongside other geological studies.
CEO Graham Stewart said: “If the results of the initial work program are successful and prospectivity is firmed up, the next steps would be to commit to the acquisition of new seismic data and bring in suitable partners ahead of potential exploration drilling.
“We look forward to working with the Irish authorities as we execute the work program over the next three years.”

hxxp://www.offshore-mag.com/articles/2016/07/petrel-faroe-detail-offshore-ireland-exploration-programs.html

[wbodger] 07/7/2016 10:54

hashertu, although 30/7-1 will be classified as a Discovery, it does not yet feature in the Discovery tab of the NPD Factpages. (It will appear in the Table View when they enter the details, presumably after testing. Nothing there yet.) If you did see a Well Design report on something, might it have been a one-off?

I see Skirne East (25/6-5 S) is currently recorded as "development is not very likely" on NPD. Perhaps that is what Oshun is about, before they drop it?

The Discovery pages do have an entry about Butch under "Planning Phase", also a similar entry for Fogelberg, updated 26/02/16 (PDO for 2018).

[rogerlin] 07/7/2016 08:23

Getting the gas from Corrib to shore has been difficult. If a new find can be tied in to the existing infrastructure it could be valuable to all concerned.

[jusmasel99] 07/7/2016 07:19

New Licence Award near Corrib. Thanks to my interest in Europa Oil who were awarded a nearby licence a month ago I have already done some research on the licences around Corrib. There was very little additional exploration work undertaken by Shell after the Corrib field development was announced - only two wells were drilled. Sources close to EOG tell me they were surprised to pick up their new licence thinking that at least one of the partners at Corrib would apply for one but perhaps they have had their fingers burned by that sorry saga and need to get some of their investment back.

Corrib itself as it stands has a relatively low shelf life and additional fields close by would be a big bonus for the operators.

[rogerlin] 06/7/2016 16:34

Good spot Scaff55, tugs Boa Jarl, Loke and Balder Viking now named, no time for testing in that timeframe but we may still hope?

[scaff55] 06/7/2016 12:10

06/07/2016 AGR GROUP NORTH SEA R/M TRANSOCEAN ARCTIC, D/D 14 12/07/2016

[hashertu] 06/7/2016 11:24

WB. Thanks.

I thought that well design reports were filed with the NPD, but I cannot find them now. Are they available, or I am just suffering a memory aberration?

[wbodger] 05/7/2016 11:26

I don't, I've been looking. The two wellbore pages for 7-1 and 7-1 A show the same coordinates. and the entry point on the Interactive Map looks the same.

31/7-1 A is declared as an Appraisal.

If they want to go beyond the limit of PL700 into PL185 it would need a separate campaign by the slightly different jv of PL185. Also, T/O Arctic is booked for Cara next, I think.

[hashertu] 05/7/2016 11:04

Do we know at what depth the sidetrack was started, how far it is stepping out and in which direction?

[wbodger] 05/7/2016 07:40

The Brasse sidetrack started two weeks ago. About right for a confirmation test of commercial potential. I guess we might not hear yes/no for another ten days, if they are testing. It's not a huge discovery - 21 metres oil column, 18 gas, but it looks quite sizable in plan in the latest presentation.

[ed 123] 04/7/2016 19:43

(Sigh) ..... Rogerlin, you're upsetting me. ;-)

When Bridge agreed their takeover by Hitecvision in Sept 2013 some were touting Faroe as possibly the next to shuffle into the Hitec stable. Faroe at the time was about 125p and I had some hope of exiting for about 180p.

A couple of years later and after a decent find at Pil/Bue/Boomerang (btw, note the top end reserves estimate has now gone up to 200mboe gross), I'm staring at a share price of 65p!

Elsewhere, the Brasse sidetrack is taking a long time. Several possibilities, but I note that Faroe appears to have missed out on the sector's recent further uptick. Maybe they're drilling a second sidetrack? .... Bad? .... Good? .... Who knows?

[rogerlin] 04/7/2016 17:52

Not new but more expansion for our friends Hitecvision.

[rogerlin] 04/7/2016 09:20

"The Yoruba people inhabit the south-western part of modern day Nigeria and the southern part of Benin. Practitioners of traditional Yoruba religion believe in a pantheon of 401 gods (known as Orisha) who govern various aspects of the world and human life. Although Oshun (also spelt Osun) is regarded principally as a goddess of love, there are other aspects to this Orisha as well. One of the most important roles that Oshun plays is that of the goddess of the sweet waters and the protective deity of the River Oshun in Nigeria. Alongside this river is a sacred grove, probably the last in Yoruba Culture, dedicated to Oshun".

Thanks for the details on those licences Wbodger. Of course if any of them get to production they will be re-named properly after Norse gods.

[wbodger] 03/7/2016 22:32

Re. Presentation, Drilling Acivity, Page 5, Dobby looks like another prospect near Njord. Not sure where, but they have been using Harry Potter associations for prospect names. 7.5% interest seems to confirm it.

Oshun has associations with Shango in Yoruba religions, so this looks like a prospect near Skirne East (FPM 20%). Total is Operator.

Aerosmith/Iris may be in the extension to PL644 (Aerosmith) awarded in 2015. PL644B is north of the Morvin field.

Interesting that they are considering appraising Fogelberg.

[wbodger] 03/7/2016 19:40

Back from holiday and just responding to like Rungne, Frisbee and Yoshi.

I haven't had a look at the pres yet but I know Rungne is northwest of Oseberg, and that it would be quite interesting as a pure exploration play in the NNS, based on the past record of Oseberg-Brage-Krafla (etc). The NPD Interactive map identifies a "Rungne Basin" on the Geology option, for what that's worth.

I'm more happy with exploration in the NNS than Barents, and wish they would leave elephant-hunting to safari-organisers with deep pockets. If (eg) Shell is cooling on frontier exploration I'm not sure what the driver for the Barents is.

Any mention of Gronoy High (PL845) by GS? That's Norwegian Sea in an untested licence to the northeast of most of the Haltenbank activity. Latitude 66 is further north than most. Looks interesting, as the operator is Conoco's Scandinavian arm.

Thanks for the report, Ed. (I think they have to produce minutes for AGMs and I'm sure they would identify you as a 'MoF' there ;-) Must be filed with the regulator somewhere? Some companies report them in the following AR.)