The chief executive of Faroe Petroleum has described as “disappointing” the failure to make a commercial oil discovery from its Kavalross prospect in the Barents sea.
The Aberdeen-based independent oil and gas company – which is focusing principally on exploration, appraisal and production opportunities in Norway and the UK – hit a duster with the Kvalross exploration well 7224/2-1.
The Kvalross exploration well was operated by Wintershall using the Transocean Artic drilling rig and is now being plugged and abandoned as planned.
Graham Stewart, chief executive, said: “Whilst the results for the Barents Sea Kvalross well are disappointing, we are pleased that the well has been drilled significantly below budget and to have encountered hydrocarbon shows which will add to the large data bank we now hold over this prospective frontier area.
“We look forward now to the next two exploration wells in our programme.
“The near-field Brasse well in the Norwegian North Sea and the Njord North Flank well in the Norwegian Sea are scheduled to be drilled in the summer and second half of 2016 respectively.”
Licence PL611 was awarded to Faroe together with co-venturers Wintershall Norge AS (40% and operator) and Petoro AS (20%) in May 2011 in the Norwegian 21st Licensing Round.
Stewart added: “Faroe has built a strong portfolio position in Norway, where exploration benefits materially from tax rebates provided by the state to support and encourage exploration in the country.
“In the meantime Faroe’s strong balance sheet means we are well prepared to weather the continuing period of low commodity prices, and are seeking to capitalise on our position to pursue consolidation opportunities in our core areas on the UK and Norwegian continental shelves.”
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