Faroe Buys Interest in UK Southern North Sea

Faroe Petroleum announced the conditional acquisition of a 60% operated interest in the Ketch Field and a 53.1% operated interest in the Schooner Field in the UK Southern North Sea gas basin from a subsidiary of Tullow Oil.

The initial consideration was of £35m. According to Faroe Petroleum, the acquisition is expected to complete before year end.

“This is our first move into operating producing assets. This transaction gives us the opportunity to add value to these fields over time, and both assets offer numerous possibilities and options to grow. Nevertheless, our clear strategic focus on exploration will remain unchanged going forward,” Graham Stewart, Chief Executive of Faroe Petroleum, commented in a note released on Wednesday.

The Ketch and Schooner Fields are located in Block 44/28b, and Blocks 44/26a and 43/30a in the UK sector of the Southern North Sea, 150 kilometres from the Theddlethorpe Gas Terminal on the Lincolnshire coast. 

‘At 1 January 2014 the remaining Proven and Probable Reserves for the Interests were estimated by the Company to be 34 Bcf of gas and 0.3 mmbbl of condensate, equating to 5.9 mmboe in total, net to Faroe,’ the company explained in the communiqué.