Faroe Petroleum, the AIM quoted oil and gas company focusing on a portfolio of exploration, appraisal and undeveloped field opportunities in the Atlantic Margin and the North Sea, is pleased to announce that it has been informed by the Norwegian Ministry of Petroleum and Energy that it has pre-qualified as a licence holder on the Norwegian Continental Shelf.

In order to encourage new competent oil companies to pursue oil and gas activities on the Norwegian Continental Shelf, the Norwegian authorities have implemented a system of pre-qualification of both licence holders and operators. The background to the implementation of this system is to give oil companies the opportunity to prove their suitability for participation on the Norwegian Continental Shelf, before the company invests resources on business opportunities.

Faroe Petroleum is actively pursuing plans to participate in the upcoming 2006 APA Round, announced by the Norwegian Energy Minister on 21 February 2006, with applications to be submitted by 29 September 2006.

In February, the Company secured a first-rate Norwegian team of highly experienced professionals, and opened offices in Stavanger, Norway. The Company's decision to enter Norway relates principally to the country's vast potential for finding new resources, its outstanding exploration success rate and the fact that it remains an under-explored province. With an estimated 21 billion barrels of undiscovered resources, Norway has also recently implemented a very favourable tax structure designed to incentivise exploration.

Graham Stewart, chief executive of Faroe Petroleum commented:

'We are delighted to have pre-qualified well ahead of the 2006 APA Licensing Round submission deadline and so soon after establishing our new subsidiary and team in Norway. With the successful hiring of such a competent team and pre-qualification, Faroe is on track to play an important role in exploring for and exploiting undiscovered and undeveloped resources in Norway.

'The Norwegian Continental Shelf represents the perfect next stage in the development of the Faroe Petroleum portfolio of assets. Our knowledge and experience in this important oil and gas province are second to none and we look
forward to an exciting time ahead.'