News - Faroe Petroleum

Discovery from Tornado Exploration well, West of Shetland

14 October 2009
Faroe Petroleum plc (“Faroe”, the “Company”)

Faroe Petroleum plc, the independent oil and gas company focusing principally on exploration, appraisal and undeveloped field opportunities in the Atlantic margin, the North Sea and Norway, is pleased to announce a discovery at the Tornado exploration prospect, West of Shetland, (Faroe 7.5% working Interest).

OMV as operator for the licence has completed the drilling of the Tornado exploration well 204/13-1 located approximately 10km north west of the Suilven discovery and 30km northwest of the Schiehallion, Foinaven and Loyal producing fields.

The well discovered gas and oil in Tertiary reservoir sandstones and extensive data collection is currently underway. The thickness and quality of the reservoir is in line with pre-drill prognosis. A sidetrack is being planned to delineate the discovery and categorically determine hydrocarbon fluid types and overall size.

This well was drilled to a true vertical depth of 2743m in the Lamba Formation. The water depth at this location is 1048 metres and the well was drilled by the Stena Carron drillship as a cost sharing endeavour between production licences P.1190 and P.1262.

The participants in the well are OMV – operator 35%, Dana Petroleum 30%, Dong Energy 20%, Faroe Petroleum 7.5%, and Idemitsu E&P 7.5%.

Graham Stewart, Chief Executive of Faroe Petroleum commented:

“We are very pleased to announce the successful outcome of this exploration well. Tornado is Faroe’s second Atlantic Margin exploration success, following within a month of the Glenlivet discovery, and we look forward to providing a further update on the results of the Tornado well analysis in the near future”.

“The Tornado well is the second of a firm five-well Atlantic Margin exploration drilling programme which Faroe is undertaking over the coming months. The first well in the programme, operated by DONG, made a signifiicant discovery, the Glenlivet gas field, which is currently being appraised. We are scheduled to drill three further very high impact exploration wells, the Anne Marie oil prospect in the Faroes (operated by Eni), the Cardhu oil prospect in the UK (operated by BP) and the Lagavulin oil prospect in the UK (operated by Chevron)”.

-Ends -
Enquiries

Faroe Petroleum plc
Graham Stewart
Tel: +44 1224 650 920

Panmure Gordon
Ashton Clanfield
Tel:+44 20 7459 3600

Financial Dynamics
Billy Clegg/Edward Westropp
Tel: +44 20 7831 3113

James Jordan, who is a Geophysicist (with a BSc and MSc in Geology from University College London), is Faroe Petroleum’s Exploration Manager for UK and the Faroe Islands and who has been involved in the energy industry for more than 19 years, has read and approved the technical disclosure in this regulatory announcement.

Notes to Editors
The Company is actively building a balanced portfolio of exploration, appraisal and production properties, with significant stakes and an active work programme. Faroe Petroleum has through successive licence applications and acquisitions built a substantial portfolio of exploration, appraisal, development and production assets across the Atlantic Margin, the UK and Norwegian North Sea and the Norwegian Sea. The licence portfolio provides considerable spread of risk and reward, encompassing nearly 50 licences with eight licences West of Shetlands, six licences offshore the Faroe Islands, two licences in the Moray Firth area of the UK Central North Sea, nine licences in the Southern gas basin and 19 licences in the Norwegian North Sea, Norwegian Sea and Barents Sea. In addition Faroe has interests in five producing oil and gas fields in the UK and Norway. Faroe Petroleum’s joint venture partners include BP, Chevron, ConocoPhillips, DONG, DSM, Eni, E.ON Ruhrgas, GDF, OMV, RWE Dea, Shell and Statoil all of which have an outstanding track record in oil and gas exploration and development.

Faroe Petroleum is quoted on the AIM Market of the London Stock Exchange with offices in Aberdeen, Stavanger and Torshavn. The Company has a highly experienced team of professionals focused on creating exceptional value for its shareholders.

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