Faroe Petroleum kicks off Norwegian drilling campaign

Oil and gas explorer Faroe Petroleum has launched this year's drilling campaign in Norwegian waters.

Faroe Petroleum boss Graham Stewart

The Aberdeen-based firm, which earlier this month said it was sitting on almost double the amount of hydrocarbons than previously thought, has a 40 per cent stake in the Kvalross exploration well, being drilled with the Transocean Arctic rig that was used to make its Bue and Pil discoveries.

The well will test two targets – the Kvalross prospect, which is said to have “significant oil and gas resource potential”, and the Kvaltann prospect.

Aim-quoted Faroe’s partners in Kvalross are operator Wintershall Norge, which also has a 40 per cent stake, and Petoro with a 20 per cent interest.

Chief executive Graham Stewart said it marks the first of three exploration wells in the firm’s drilling programme in Norway this year.

He added: “Faroe enters 2016 in robust financial health, with strong production, a solid cash position and largely un-utilised credit facilities, as we continue to evaluate the potential to take advantage of further good quality growth opportunities.”