First exclusive licence in the Dreki Area relinquished


Orkustofnun has today received a notification from operator Faroe Petroleum that the company along with its partners, Petoro Iceland and Iceland Petroleum, relinquish their licence No. 2013/01, which was issued on 4 January 2013.

Orkustofnun has accepted the relinquishment of the licence upon the fulfillment of its terms.

Faroe Petroleum, on behalf of the joint venture, thanked Orkustofnun for its support and co-operation during the term of the licence.

It was noted at a meeting of the licensees, with the participation of Orkustofnun, that the first two-year phase of the work programme of the licence would be completed by 4 January 2015. Furthermore, the results of the initial studies of the licence area were discussed and were found to suggest that acquisition of seismic data in the next phase would not suffice due to the presence of basalts on the eastern edge of the Dreki Area which complicates imaging of sediment sequences below. Alternative exploration methods, excluding drilling, were also evaluated by the joint venture and were assessed as currently not significantly increasing the probability of identifying hydrocarbon bearing structures in the IS2013/01 licence area.

Orkustofnun thanks the licensees involved for the contribution to the exploration of the Dreki Area and emphasizes that the other licensees continue exploration according to their work programmes.