Faroe awards Brasse rig contract, resumes Enoch production

ABERDEEN, United Kingdom -- Faroe Petroleum has announced the award of a rig contract for the drilling of the Faroe-operated Brasse exploration well in the Norwegian North Sea (Faroe 50%) and the recommencement of oil production from Enoch field (Faroe 13.86%) in the UK North Sea.

Faroe has entered into a contract with Transocean Offshore (North Sea) Ltd. on behalf of the PL740 joint venture for the lease of the Transocean Arctic semi-submersible. Faroe has budgeted its net share of the well costs after tax to be less than $2.98 million (£2 million), and the well is expected to be drilled in the summer of 2016.

Brasse will test a structure immediately to the south of the producing Brage field, and, if successful, it could be tied-back to Brage (Faroe 14.3%) or alternatively to other nearby installations. The co-venturer in the PL740 license is Core Energy AS (50%).

Enoch field

Production from Enoch field (Faroe 13.86%) in the UK North Sea has recommenced following an extended period of shut-in for repair and maintenance. Initial production rates have been encouraging, Faroe said in a statement.

Faroe recently increased its interest in Enoch field from 1.86% to 13.86% for a nominal consideration. Enoch field, which is operated by Talisman Sinopec Energy UK, has been developed as a single well subsea tie-back to the Marathon-operated Brae field.

“We are very pleased to announce the signing of the drilling contract for this exciting Faroe-operated exploration well -- one of three exploration wells in Faroe’s drilling program for 2016 in Norway," Graham Stewart, CEO of Faroe Petroleum, said. "The Brasse prospect will be drilled using the Transocean Arctic, which is the same rig as we used to make the Pil discovery in 2014."