Tuesday, December 4th 2012 - 19:47 UTC

Aberdeen oil firm secures exploration licences on Iceland continental shelf

Aberdeen oil firm Faroe Petroleum has secured provisional exploration licences in the Dreki area on the Icelandic Continental Shelf. The company said the licences were “extensive”, encompassing seven blocks located inside the Arctic Circle to the north east of Iceland.

Faroe Petroleum licences include seven blocks inside the Arctic Circle

Faroe said samples indicated the area had a working hydrocarbon system. It said it was “very excited to get the opportunity to explore and de-risk these prospects”.

Experts have predicted the Arctic will be the next major oil producing region, with reserves of about 20 billion barrels of oil.

However Edinburgh explorer, Cairn Energy, has failed to make a commercial discovery of oil and gas after a major drilling campaign.

Graham Stewart, chief executive of Faroe Petroleum, said: “We are very pleased to announce our entry into Iceland's offshore, which represents an important extension of our frontier exploration portfolio in the UK west of Shetlands, Norwegian Sea and Norwegian Barents Sea.

”As with our Norwegian Barents Sea licences, this new Icelandic Jan Mayen Ridge licence has significant hydrocarbon potential, and is located in ice-free waters.”

Faroe focuses mainly on exploration and production opportunities in the Atlantic Margin, the North Sea and Norway. It is currently awaiting the results of drilling operations at two UK exploration wells - one west of Shetland and the other in the UK North Sea.
 

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1 Islas Malvinas (#) Dec 04th, 2012 - 08:34 pm Report abuse
Good news for Iceland.
Hope they can also explote their Icelandic Hatton-Rockall area.
2 Think (#) Dec 04th, 2012 - 08:45 pm Report abuse
TWIMC

What is it with MercoPress and their “love affaire” with British Small Cap loser Oil Exploration Companies?

(FPM) FAROE PETROLEUM
Down today to 137.50p (-0,90%)

(ARG) ARGhhhhhOS RESOURCES LIMITED
Down today to 25.88p (-4.61%)

(DES) DESPIRE PETROLEUM
Down today to 20.25p (-3.57%)

(RKH) ROCKFLOPPER EXPLORATION
Down today to 144.75p (-0.69%)

FOGL FALKLAND OIL AND GAaaaaaaS LIMITED
!!!! Stable !!!! today at 30.50p (0.00%)

Any ”Vested Interests” maybe?
3 andy65 (#) Dec 04th, 2012 - 08:53 pm Report abuse
SS HITLER CRISTINA KIRCHNER WILL NOT BE HAPPY WITH THIS>
4 Orbit (#) Dec 04th, 2012 - 11:48 pm Report abuse
YPF Update

(NYSE:YPF) Ypf Sociedad Anonima
Down today to $11.36 (-0.4%)
Down 2 years $55 to $11.36 (-79.5%), $-17.16 billion market cap. Ouch!

Hopefully Mercopress don't have any vested interests there, unlike Argentine investment funds and pension funds. They thought they were safe with the national carrier, and rightly avoided small cap high risk exploration companies, but it didn't quite work out.

But the future is bright for YPF employees; the central bank now picks up the bill, and accountability and efficiency can go out of the window. Soviet style workers paradise, but this time it will work out, unlike all the other times before. Hurrah!
5 KFC de Pollo (#) Dec 05th, 2012 - 12:11 am Report abuse
la Icelandia son Argentinos!!!1!1111!
6 Marcos Alejandro (#) Dec 05th, 2012 - 04:05 am Report abuse
When the oil exploitation is going downhill in Malvinas MercoP talks about the Icelandic Continental Shelf Lol.

Urinehopper Exploration in Malvinas
clip2net.com/s/2z7BB
7 Monkeymagic (#) Dec 05th, 2012 - 08:11 am Report abuse
Oil exploration “going downhill”?

How much per capita is the 36% tax and duty on the profit of a 350mmb-500mmb discovery?

The Falkland Islanders will be the richest people on earth come 2020-2025 even if not a drop more oil was discovered....but it will be!!

Ignorant pratts like Think might believe short term share prices of the explorers represent whether Falklands oil is a success. They are completely irrelevant.

First production 2017, first profits 2019, richest people on earth 2025.

Chuckle chuckle
8 falklandlad (#) Dec 05th, 2012 - 10:37 am Report abuse
#2 Oh my dear Think,
What a tide of disappointment you paint!
Setting aside the “deep-water port” discussion, why do you pander to huge disappointment and lack of success with the British Small Cap plcs who have delivered, absolutely, the corner stones of long-term political and economic security for the Falklands:
Rockhopper Exploration now 60% farmed into by Premier Oil, rolling out a USD4 billion development programme for 1st oil 2017 delivering 1/3 of Premier's global business base from the Falklands in 2018. Rockhopper now well-funded to lead a greater exploration campaign in the North Falklands Basin...
Borders&Southern - 2 exploration wells delivering proven hydrocarbon province and reserves in 1 well, and actively seeking a farm-in partner
FOGL - 2 exploration wells, proving the hydrocarbon province and gas in 1 well, now joined by Noble - a great US oil explorer becoming the operator of FOGL acreage in 2014 and mobilising significant seismic vsl assets to determine the range of future discoveries consequent of the FOGL & B&S success. Edison (and EDF) committed to long term investment with FOGL...
Desire - disappointing initially but now turned good, with huge prospectivity going forward, actively seeking farm-in partner...
Argos - the quiet yet confident dark horse, with potentially more discovery potential than you could ever dream about!
Is that not a great campaign to date?
4 deepwater wells drilled in 2012 and 2 of those discoveries - where else in the world, in such hostile conditions is that benchmark rivalled. Not I hasten to add in Arg deepwater! Even FIG's technical consultant was caused to admit that success recently, was a far cry from a previous forecast 1 in 10 COS.
So whats your technical take, rather than taking pot shots at explorers because the stock market dreamed of gushing success at each and every well drilled.
Be interested to hear your professional analysis, please.
9 Think (#) Dec 05th, 2012 - 07:13 pm Report abuse
(8) falklandlad

I can't give you any professional analysis because I'm not an oil professional...... I'm just a humble Argie from Patagonia.....

But I can share my thoughts with you..................:-)

1) Rockflopper drilled a hole just over a mile to the left from the place where SHELL had found some uncomercial oil some twelve years ago....... and, guess what?.... They found the very same oil!
From there they have been quite good at ramping that “HUUUUUGE” discovery.....
But ramping is one thing........ reality is quite different.....
They want now the investors to wait 5 (Five) years....! For what....?

2) Despire, B(ull)&S(hiat), Arghhhhos and FOGaaaasL have all encountered NOTHING of commercial interest.
Their Share-Prices perfectly mirror that fact.

3) In the meantime all those five Companies Employees, their BOD's and their “Service Providers” are being royaly remunerated with the monies of Gullible, Patriotic British Investors like Mr. Beef and Mr. DoveOverDover.................

4) I “Think” the Falklands dream is over for most of them.....
But you surely know how it is to wake up to reality from a beautiful dream...................... Don't ya?
It's hard to accept its over...............
10 falklandlad (#) Dec 06th, 2012 - 01:23 pm Report abuse
# Think,
I can't agree with your scenario; save for the share prices remaining flat, but that is possibly more to do with market makers seeking quick returns on investments. The next exploration phases are said not to re-commence until 2014-15.
Without doubt the NFB campaign is over until that time, and the SFB deepwater campaign has now ended - see FOGL's RNS of today. The smaller RNS print though sets out the huge 3D seismic programme now unfolding - the gutsiest ever committed to offshore Falklands.
But, however the picture is squared, and you prefer the adjective “skewed”, the upside is huge, with the downside appropriately de-risked to provide the Falklands, subject to proper legislator planning...hey ho..., with unenviable political and economic security. The sort of security that a few seasonal cruise ship port calls could never mirror, nor in either revenue terms. The penguins on Gypsy Cove will enjoy a relaxed summer.
I seem to recall posting elsewhere on Merco, that Governor Heywood was talking through his hat when he stated that tourism was the future economy of the Falklands; your mistress clearly had other thoughts! But who am I to counter the experts views - a mere falklandlad...
We should share a cup of tea sometime - I don't do mate'.
11 Think (#) Dec 06th, 2012 - 07:06 pm Report abuse
(10) Falklandlad

But who are we to counter the experts views............indeed.
About that cup of tea..... Who knows?..... Maybe one day..... Weirder things are known to have happened....
12 Monkeymagic (#) Dec 06th, 2012 - 09:12 pm Report abuse
Think

Rockhopper actually drilled over 10miles east (on most maps that would be to the right) of where Shell drilled in 1998.

Where Shell found 2m of net pay at greater than 3000m depth, RKH found over 50m of pay at between 2400-2700m. So not the same oil at all. in fact a completely different reservoir.

Had Shell drilled 1km to the east, they would of course have found the RKH reservoir.

So that is two of your “facts” which aren't “facts” at all.

On the day of discovery RKH was trading at 35p. It's now £1.40-£1.50, another “fact” you fail to mention.

Reality is that Premier Oil has committed $2bn over the next 5 years to deliver the “massive” discovery, of between 350-500 million barrels.

So, far from being “over”, it's only just started.

The French-Italian company EDF-Edison, the American company Noble, and Premier have now joined the exploration, and rigs will be back in 2014.

You seem disappointed first oil production will be in 2017. You seem to suggest that is a long time.

Using your clear experience in the area....what is the average timescale from discovery to first oil in an FPSO development, is Sealion in line with that?

More of your “facts” please

Chuckle chuckle!!

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