Faroe Petroleum gains six new licences in Norwegian round

Faroe's board has told shareholders to accept DNO's final offer
Faroe said the offer looks to "exploit the recent oil price fall"

Faroe Petroleum said it has been awarded six new exploration licenses in Norway.

The company said it includes two operatorships under the 2015 Norwegian APA licence round.

Three new licence in the Norwegian Sea area include licence PL8365, licence PL845 and licence PL644B.

Meanwhile in the Norwegian North Sea the company has been awarded three new licences.

It will become operator of licence PL810 and operator in licence PL825, with a 40% share in each.

Faroe has also gained a 20% share in licence PL811.

Graham Stewart, chief executive of Faroe Petroleum, said: “Faroe has again been very successful in its licence application strategy, winning a further six licences in the latest Norwegian licensing round which add further upside potential to our portfolio.

“Significantly, we have further consolidated our position in core areas of the Norwegian continental shelf in which we have enjoyed recent exploration success, enhancing our acreage positions near and around the greater Njord Areas and the Butch development project.

“At this stage no well commitments have been offered and should we and our partners progress these toward exploration drilling, Faroe continues to benefit from the Norwegian tax system whereby 78% of all exploration related expenditure is eligible for a tax rebate in the following year.”

Earlier this month Statoil said it had been awarded the highest number of licences since 2005 by the Norwegian authorities.