News

August 25, 2009

Faroe Petroleum Spuds Glenlivet Prospect In A Key Test Of Its West Of Shetland Ambitions

Its coffers boosted by the recent sale of its 10 per cent stake in the Breagh gas discovery in the North Sea, Faroe Petroleum has started drilling on the Glenlivet prospect in the waters to the west of the Shetland Islands. The UK and Norwegian sectors of the North Sea may be the AIM’s firm’s bread and butter business, providing the production and trading opportunities to strengthen its balance sheet, but this Atlantic Margin acreage, to the west of Shetlands and offshore the Faroe Islands, is the potential jam that will fuel a move into a another league.

Faroe has a 10 per cent stake in Glenlivet, a large Palaeocene gas prospect in a proven play about 15 km from Total’s proposed Laggan gas export pipeline to Sullom Voe in the Shetland Islands. The prospect is an analogue to other undeveloped gas discoveries in the vicinity and a find here would add weight to a planned new UK gas gathering system for the West of Shetland area, of which Laggan is the focal point.  The operator of Glenlivet is DONG E&P, which also has a 20 per cent stake...