Faroe Petroleum intends to cease operations on the P1161 licence (Freya and Fulla), west of Shetland (Faroe Petroleum 50% and operator).

In July 2011 the Company drilled an exploration well (206/5a-3) on the Fulla prospect and the targeted Clair and Whiting reservoir sands were found to be oil-bearing. Extensive modelling has since been undertaken to establish the resource potential and assess a means of economically developing the Fulla discovery in conjunction with the 1980 Freya discovery, located immediately to the south in the adjoining Block 206/10a. The results of this work confirm relatively poor oil quality, smaller than expected resource size and limited access to infrastructure. No economically viable solution has been found to bring these discoveries to development at this time, and consequently the licence will be relinquished.

Tags: Faroe Petroleum