Production Update: Topaz Gas Field on Stream and Trym Swap Completed

19 November 2009
 
            Faroe Petroleum plc ("Faroe", the "Company")
 
Production Update: Topaz Gas Field on Stream and Trym Swap Completed
 
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 provide a production update following first gas from Topaz
and the completion of the acquisition of interests in the producing
Glitne and Enoch oil fields.
 
Topaz Gas Field on Stream
 
Production has  successfully  commenced  from the  Topaz  gas  field,
located in the UK Southern Gas Basin, in which Faroe holds a 7.5  per
cent working interest. Commissioning tests  continue and the well  is
not yet operating at full choke. The expected initial production rate
is 30 million  standard cubic  feet of  gas per  day (mmscf/d)  which
corresponds to approximately 5,000  barrels of oil equivalent  (boe),
equivalent to 375 boe net to Faroe.
The Topaz gas field (RWE Dea UK SNS Limited 57.5% and operator, GDF
SUEZ E&P UK Ltd 35%), is tied back subsea to the Schooner gas field
platform, in which Faroe also holds a 4.83% interest. The Topaz base
case gross reserves are estimated to be approximately 20 bcf (1.5bcf
net to Faroe).
 
Trym Swap Completed
 
Faroe has completed the exchange with DONG E&P Norge AS ("DONG") of
its 10% interest in the Trym development for:
 
*          a 9.3 per cent interest in the producing Norwegian Glitne
  oil field;
*          a 1.86 per cent interest in the producing Enoch field
  (located on the Norway/UK median line);
*          cash of NOK 78.3m (£8.3m) of which £2 million is by way of
  initial consideration and the balance the net proceeds of sale
  (pre-tax) since the effective date of 1 January 2009; and
*          a further amount up to £2 million is payable by DONG to
  Faroe upon certain production targets being met by the Trym Field
 
Combined current gross production from the Glitne and Enoch fields
over the year to date has averaged  12,000 boepd, corresponding to
net production to Faroe of around 700 boepd.  Both fields have the
potential for increased production with further field investment.
 
Graham Stewart, Chief Executive of Faroe, commented:
 
"We are pleased to announce first gas from the Topaz Gas Field and
completion of our swap deal with DONG to add interests in the
producing Glitne and Enoch oil fields in Norway. These three fields
together with the Company's existing UK Schooner and Wissey gas
fields have taken Faroe's overall production over the 2,000 boepd
level."
 
"This is an exciting period for the Company, with increasing
production contributing towards the cost of the Company's continuing
exploration programme.  Following our two recent back to back
significant discoveries in the west of Shetland area, Glenlivet and
Tornado, we look forward to drilling a further five, high impact
exploration and appraisal wells scheduled for the next 12 months,
three in the Atlantic Margin and two in Norway."
 
                              - Ends -
 
Enquiries
 
Faroe Petroleum plc
Graham Stewart
Tel: +44 1224 650 920
 
Panmure Gordon
Ashton Clanfield/Dominic Morley
Tel: +44 20 7459 3600
 
Financial Dynamics
Billy Clegg/Edward Westropp
Tel: +44 20 7831 3113
 
Notes to Editors
Joran  Austbo  who  is  a   Petroleum  Engineer  (Bsc  in   Petroleum
Engineering from Stavanger University),  of Faroe Petroleum Norge  AS
and who has  been involved in  the energy industry  for more than  10
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 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.