Faroe pre-qualified as operator in Greenland

24 November 2009
 
            Faroe Petroleum plc ("Faroe", the "Company")
 
            Faroe pre-qualified as operator in Greenland
 
Faroe  Petroleum,  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  that,  in  advance  of  potentially  submitting
applications for licences,  it has pre-qualified  as an operator  for
the Greenland 2010 Baffin Bay Licensing Round.
 
The undiscovered oil and gas potential offshore West Greenland, which
includes the Baffin Bay  Licensing Round area,   is estimated by  the
U.S. Geological Survey (USGS) to contain up to 18 billion barrels  of
oil equivalent.
 
The Baffin  Bay Licensing  Round, for  which applications  are  being
sought by  May  2010,  covers  the prospective  north  west  area  of
Greenland and is north of the Disko area where licences were  awarded
to a number of companies  including Cairn Energy, Chevron and  Exxon,
in 2007.  The area to be licensed is substantial and has been divided
into 14 licence blocks covering a total area of 151,358 km².  Seismic
data coverage  has  improved  significantly during  recent  years  in
preparation for licensing  rounds in  the region and  there are  nine
seismic surveys available covering 21,257 km².
 
The pre-qualification of Faroe  Petroleum as an exploration  operator
is a key part of  the process the Company  is pursuing in advance  of
potentially applying  for  licences  in  Greenland.  Greenland  is  a
modern,  democratic,  and  politically  stable  society,  within  the
kingdom of Denmark with home rule government, and strong  association
with Denmark  in  such  areas as  foreign  policy,  common  currency,
jurisdiction and defence.  Licences are granted on terms very similar
to the well  known terms  applicable in  the North  Sea.  The  fiscal
terms for  future production  in Greenland  are similar  to those  in
place for the UK and the Faroe Islands and are generally regarded  as
attractive.
 
Graham Stewart, Chief Executive of Faroe, commented:
 
"We are pleased to announce  our pre-qualification as an operator  in
Greenland, ahead of the upcoming 2010 Baffin Bay Licensing Round.  As
a key part of the Arctic region, with its potential to hold up to 25%
of the world's  undiscovered oil and  gas resources, this  is a  very
important and significant  exploration opportunity.  Greenland  would
represent a natural  progression for  Faroe Petroleum  as a  frontier
exploration company focused  on the  Atlantic Margin  and Norway  and
with its origins in the Faroe Islands.
 
"This is a technical and geopolitical environment in which we believe
we  have  strong  credentials  to  build  a  successful   exploration
portfolio and we are excited at the opportunity it presents to us".
 
                              - Ends -
 
Enquiries
 
Faroe Petroleum plc
Graham Stewart
Tel: +44 1224 650 920
 
Panmure Gordon
Dominic Morley/ Ashton Clanfield
Tel: +44 20 7459 3600
 
Financial Dynamics
Billy Clegg/Edward Westropp
Tel: +44 20 7831 3113
 
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 20 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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This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.