Aberdeen-based Faroe Petroleum says the beleaguered Njord field, which has been shut down since July last year, will not start producing again until summer 2014.
The firm said work on the reinforcement project at the site was expected to be completed and production started up again in the summer of this year.
“For the long-term development of the Greater Njord Area, the operator’s current base case assumes that after a period of production the facility will be brought to a years for the hull to be either repaired or replaced,” said Faroe.
The firm said its average full year 2014 production is expected to be in the range of 4,000 to 6,000 barrels of oil equivalent per day (boepd) from all fields.
Total average economic production for 2013 was around 6,059 boepd, with year-end cash position expected to be around £40million.
The firm recently announced two drilling successes – the Snilehorn discovery near the Njord production field and the Novus discovery – with exploration underway at the Butch East, Pil and Solberg wells.
2014 exploration and appraisal capex is expected to be around £110million pre-tax, and development and production capex around £25million.
Faroe says its proven reserves increased 35% in 2013 to 27.2million barrels of oil equivalent net to Faroe, with unrisked contingent resources at January 1, 2014 estimated at 73million barrels of oil equivalent.
The firm was awarded 10 new prospective exploration licences, including two operatorships, under the 2013 Norwegian APA licence round.
Faroe says it is now preparing for the Norwegian 23rd and UK 28th licensing rounds.
“Our Norwegian position is the most significant of any UK independent E&P company, and it continues to add value and will provide exciting high impact wells for many years to come,” said chief executive Graham Stewart.
“We now look forward to an exciting period ahead, with a programme of fully-funded high impact exploration and appraisal wells planned, each with material equity stakes.”
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