Faroe Petroleum announces the results of the Novus exploration well (Faroe 30%).
•The Faroe-operated Novus exploration well 6507/10-2S in the Norwegian Sea is an oil and gas discovery
•The preliminary volumetric gross estimate of the size of the discovery is 6 - 15 million barrels of oil equivalent (“mmboe”) recoverable, net to Faroe 1.8 – 4.5 mmboe
•Due to the presence of a large gas cap in the reservoir, Novus is unlikely to be of commercial size on its own; nearby de-risked prospects and leads offer potential for a future commercial combination
•The well encountered a 12 metre net gas column and a 12.5 metre net oil column in a high quality, thicker than expected Garn formation
•The well confirmed the play model, with excellent quality reservoirs in the area, and that 3D seismic anomalies are diagnostic as a direct hydrocarbon indicator in these types of reservoirs
•The well result will be used to refine the geological model and de-risk additional prospects and leads on the licence for potential future drilling
•Well cost significantly mitigated through August 2013 farm down from 50% to 30%, on a cost carried basis, together with the Norwegian tax rebate