Faroe Petroleum: Cassidy Exploration Well Finds Water

   By Ian Walker 
 

Faroe Petroleum PLC (FPM.LN) said Thursday that the Cassidy exploration well 8/10-7S has been drilled to 3,100 meters and found water.

The oil-and-gas company, which is currently fighting off a 607.9 million-pound ($770.6 million) offer from DNO ASA (DNO.OS), said the well in the PL405 Oda license in the Norwegian North Sea will now be plugged and abandoned as planned.

Faroe has a 15% working interest in the well, while Spirit Energy Norge has a 40% interest and is operator and Suncor Energy Norge AS has 30% and Aker BP ASA has 15%.

Faroe Chief Executive Graham Stewart said while the results are disappointing the company has maintained its above-average exploration success rate this year.

"We remain active over the coming months, with the Brasse East well currently drilling, and a further three exploration and appraisal wells so far committed for drilling in H1 2019," Mr. Stewart said.

Faroe was approached by DNO in November, with the Norwegian company offering to buy Faroe for 152 pence a share. Faroe rejected the offer as "opportunistic, unsolicited and inadequate."

DNO already owns more than a quarter of Faroe's existing shares, according to FactSet.

Faroe shares at 0930 GMT were down 0.80 pence, or 0.5%, at 151.20 pence.

Write to Ian Walker at [e-mail]

(END) Dow Jones Newswires

December 27, 2018 04:53 ET (09:53 GMT)

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