The NPV of the two year drilling programme has increased from GBP168 million to GBP189 million and new awards in 2008 have more than compensated for any reductions in the projected NPV associated with unsuccessful exploration drilling since the last report.
The reserves and resources are reported in accordance with the joint reserves/resources definitions of the Society of Petroleum Engineers, the World Petroleum Congress and the American Association of Petroleum Geologists.
Faroe Petroleum is participating in an active drilling programme. The reserves and resources which will be targeted in the coming two year drilling programme are labelled “Near Term Appraisal” and “Near Term Exploration”.
The category “Medium/Long Term” includes the resources which will be targeted by additional exploration and appraisal wells, but which do not yet have firm drilling plans. The summary tables below do not include a number of additional exploration prospects in the company’s portfolio where they have either no current drilling plans or need additional work for them to be matured into drillable prospects.
Graham Stewart, chief executive of Faroe Petroleum, commented:
“We are pleased to provide an update of the Senergy report to Faroe Petroleum’s shareholders. We feel this is an informative and important third party verification of the inherent value contained in our extensive portfolio. We are encouraged by the increase in value that has been achieved, particularly in the Contingent Resources category and we look forward to targeting the significant resource potential and associated value uplift which could be realized for shareholders in the near term”.
