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Faroe Petroleum kicks off Cassidy exploration well

“Cassidy offers high-value upside for the Oda field development as well as potential to unlock further exploration prospectivity to the north of the Oda field.”
oil and gas operations
Faroe holds a 15% stake in Cassidy

Faroe Petroleum plc (LON:FPM) revealed that drilling has kicked off for the Cassidy exploration well in the Norwegian Sea.

The growing oil firm has a 15% stake in Cassidy which is targeting a prospect similar to the Oda field, located within the same licence block. The Oda field is due online next year.

Cassidy will have a 3,056-metre vertical depth, and, is situated in 66 metres of water.

"I am pleased to announce the spudding of the Cassidy exploration well situated within a tie-back distance of the Oda field, which is on track for first oil in H1 2019,” said Graham Stewart, Faroe chief executive.

READ: Is DNO’s offer for Faroe too cheap

“Cassidy offers high-value upside for the Oda field development as well as potential to unlock further exploration prospectivity to the north of the Oda field.”

Exploration, appraisal and development upside is a key topic of debate for Faroe and its investors amid the unsolicited recent takeover offer from DNO.

DNO earlier this year built a 28% stake in Faroe and in November launched a takeover offer pitched at 152p, valuing the company at £608mln.

City analysts noted that the offer is ‘light’ when considered against Faroe’s forward plan and its opportunities.

Stewart, in Wednesday’s statement, noted certain highlights for the upcoming programme.

"Faroe's active exploration programme has delivered two commercial discoveries out of three wells so far this year: Iris Hades in Norway (Faroe's largest discovery to date); and Agar in UK,” he added.

“The programme is continuing over the coming period, with Cassidy and the Brasse East well currently drilling, a further two wells so far committed for drilling in H1 2019, and a steady flow of additional wells being prepared for drilling."

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