Faroe Petroleum has commenced drilling on the Glenlivet prospect (Faroe 10%), west of Shetlands.

Glenlivet is a large Palaeocene gas prospect in a proven play, situated approximately 15 kilometres from the 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. A discovery at Glenlivet could become a significant part of the planned new UK gas gathering system for the West of Shetland area, for which the Total operated Laggan field is the focal point. Glenlivet operator DONG E&P (UK) Ltd (“DONG E&P”) is also a 20% equity partner within the Laggan field development project.

Faroe acquired the Glenlivet interest in 2008 through a like for like swap arrangement with DONG E&P where Faroe exchanged 10% of Faroe’s Glenshee licence (covering West of Shetlands blocks 217/21,22,26 and 216/30) for 10% of DONG E&P’s Glenlivet licence (block 214/30).

The drilling operation, to be undertaken by the operator DONG E&P using the Transocean Rather semi-submersible drilling rig, is expected to take approximately 40 days.

Graham Stewart, Chief Executive of Faroe, said, “The Glenlivet well is an exciting high impact exploration prospect from our strategically significant West of Shetland acreage and is part of a 2009 two well drilling programme which Faroe is currently undertaking in this area. The other west of Shetland well we are scheduled to drill this year is the Tornado exploration well, which is expected to commence in the next few weeks, upon which a further announcement will be made in due course.

"These two wells are part of Faroe’s firm and funded nine well exploration programme to be drilled over the next 24 months".

Tags: Faroe Petroleum