Current licences offshore Faroes. (For larger scale, visit www.jardfeingi.fo)

Mr. Johan Dahl, Minister of Trade and Industry of the Faroe Islands, has approved the extensions of the licence periods for 3 hydrocarbon exploration licences. Included in the agreement is a firm commitment for an exploration well. The Licences, for which the licence periods have been extended, are 006, 009 and 011, but it has not yet been decided in which of these licences the well will be drilled. The well shall be drilled and evaluated prior to the expiration of the licence periods in 2013.

Continuing partners in Licence 006 will be Statoil Faroes (operator - 99%) and Atlantic Petroleum (1%). 58% of the licence acreage of Licence 006 has been relinquished in relation to the extension. Anadarko, Amerada Hess, British Gas, DONG and Enterprise have withdrawn from the Licence. In Licence 009 Statoil Faroes takes a 100% interest. DONG, Shell and Faroe Petroleum are not continuing in the Licence. In Licence 011 Statoil Faroes continues with 100% interest.

Mr. Johan Dahl is pleased with the agreement: 'It is very encouraging that Statoil and Atlantic Petroleum share our perception of the potential in the Faroese subsoil and commit to yet another exploration well. The fact that the licensees have not yet decided in which licence the well will be drilled, can also be considered as a positive indication of the potential in the three licences.

In the last month two wells have been committed, making a total of three future exploration wells in the Faroese area. The first well to be drilled is the ENI operated well in Licence 005 and this will be spudded this spring. The encouraging news may also raise the interest of other companies in the potential of the Faroese area.

First of all this commitment is good for the process towards a commercial discovery, but it is also good news for local Faroese suppliers of goods and services to the oil industry. I trust that the exploration activity will bring contracts to that part of the local industry as well.'

Source: Ministry of Trade and Industry