FAROE SPUDS BRASSE APPRAISAL WELL

May 26, 2017

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway, the UK and Atlantic Margin, announced the commencement of the Faroe-operated Brasse appraisal well 31/7-2S in the Norwegian North Sea (Faroe 50%).
Faroe announced the Brasse oil and gas discovery in PL740 in July 2016. The main wellbore 31/7-1 encountered an 18 metre gross gas column and a 21 metre gross oil column, and the sidetrack well (31/7-1A) encountered a 6 metre gross gas column and 25 metre gross oil column, with both wells encountering good quality Jurassic reservoir. Total gross volumes of recoverable hydrocarbons have been estimated by the Company to be 28-54 mmbbls of oil and 89-158 bcf of gas (43-80 mmboe gross in aggregate).
The main objectives of the appraisal well are to reduce the uncertainty in the reserves estimates and to provide important additional information for the development project. The Brasse appraisal well will target a seismic anomaly c. 2 km to the southeast of the main discovery well and has the potential to derisk further reserves upsides beyond the existing uncertainity range.
The Brasse discovery is located within tie-back distance to existing infrastructure: 13 kilometres to the south of the Brage field platform, in which the Company holds a 14.3% working interest and 13 kilometres to the south east of the Oseberg Field Centre. Faroe, as operator, has entered into a contract with Odfjell Drilling for the use of the semi-submersible drilling rig, Deepsea Bergen, for the drilling operations.