The Company has entered into an agreement with North Sea Ventures Limited to acquire its 50% interest in UK Licence P.324, block 14/20c containing the Lowlander oil discovery.
This acquisition follows completion of Faroe’s purchase of the initial 50% interest in the Lowlander discovery, acquired from Talisman Sinopec in February 2013.
Faroe has acquired Lowlander with the intention of bringing it forward to development together with the neighbouring Perth Field (Faroe 34.62%), as a joint project sharing the same production facilities and thereby benefiting from economies of scale.
The Company intends to continue the technical work programme focused on optimising the development solution for the fields and reaching commercial agreement for a joint development.
The acquisition is subject to approval by the Department of Energy and Climate Change.
Faroe Petroleum chief executive Graham Stewart said, "Faroe is building an exciting core area around Perth and Lowlander in the Central North Sea and work is underway together with our Perth partners to progress the potential high value Perth/Lowlander joint development project."
