Faroe Petroleum says Fogelberg oil exploration underway as JV operator Centrica commences drilling

Independent oil and gas company Faroe Petroleum (AIM: FPM) says drilling has begun on the Fogelberg prospect, located in the Norwegian North Sea. Fogelberg on the PL433 license is a substantial oil prospect, located some ten kilometres to the north of the producing Asgard oil field. Fogelberg is the first of Faroe’s five high-impact wells planned for 2010.

Faroe Petroleum holds a 15% interest in the Fogelberg JV, and the prospect is being operated by Centrica (LSE: CNA) owning 28%. Petro-Canada is the largest stakeholder with 30%, E.ON’s Ruhrgas Norge unit has 15% and North Energy AS owns12%.

Drilling is expected to take approximately 80 days. “With the Fogelberg prospect in Norway we are very pleased to have commenced our 2010 programme with the first of five scheduled high impact wells”, Faroe Petroleum chief executive Graham Stewart said. “Fogelberg is the first of two wells we have scheduled for the Norwegian Sea this year. The second is the Wintershall operated Maria appraisal well (Faroe 30%) which is expected to commence in the second quarter".

Fogelberg, which was identified on the basis of Faroe's own original technical work, was one of the company’s first licenses in Norway. The Fogelberg well, 6506/9-2 S, will be drilled in a rotated fault block localised on the Halten terrace north of the producing Asgard field. Faroe said the Fogelberg structure is similar to the recent Statoil (NYSE: STO) operated Morvin oil and gas discovery located 10km to the south west. Statoil successfully appraised Morvin in 2006 and it is expected to come on stream towards the end of 2010.

According to Stewart, the other three 2010 exploration wells will be drilled, outside Norway, are substantial oil prospects in the deep water Atlantic margin, all three are being operated by major oil companies. The 12.5% owned Anne Marie prospect in the Faroe Islands is being operated by Eni, whilst two prospects offshore West Shetland are being drilled. Faroe hold 10% interest in the Lagavulin prospect which is operated by Chevron and has 6% interest in the Cardhu prospect.  http://www.proactiveinvestors.co.uk/companies/news/13244/faroe-petroleum-says-fogelberg-oil-exploration-underway-as-jv-operator-centrica-commences-drilling-13244.html