Faroe Petroleum has acquired the remaining 50 per cent interest in the Lowlander oil discovery in the UK Central North Sea, such that the Company will own the entire 100 per cent interest in the undeveloped oil field.
The Company has entered into an agreement with North Sea Ventures Limited to acquire its 50% interest in UK Licence P.324, block 14/20c containing the Lowlander oil discovery. This acquisition follows completion of Faroe's purchase of the initial 50% interest in the Lowlander discovery, acquired from Talisman Sinopec in February 2013.
Faroe has acquired Lowlander with the intention of bringing it forward to development together with the neighbouring Perth Field (Faroe 34.62%), as a joint project sharing the same production facilities and thereby benefiting from economies of scale. Perth and Lowlander have been fully appraised, with a combined total of nine wells drilled on the fields. Together the fields are estimated to contain Stock Tank Oil In Place of 270 million barrels, with 62 million barrels of oil estimated to be recoverable, of which 22 million barrels is attributable to Lowlander*. In addition there is the potential that the production facilities for a joint field development could serve as a hub for a number of other analogous accumulations already discovered in the area.