Unofficial Translation

The Minister of Trade and Industry, Mr Johan Dahl, has approved an extension of Faroese Exploration Licence no. 008.

As part of the conditions for the extension the licensees have committed to drill one exploration well on the licence.

Licence 008 was granted in the second licensing round which was held in 2005. The licence is operated by Statoil, with DONG and OMV as co-licensees.

The Minster says: “It is very positive for hydrocarbon exploration on the Faroese Continental Shelf that licensees again commit to drill a well.

Though we are convinced of the potential in the Faroese Continental Shelf, we also acknowledge the fact that the current financial situation is limiting the activity of oil companies. Bearing this in mind, the better reason we have for welcoming this agreement, which I hope will be of mutual benefit for the Faroese society and the licence holders.

In addition to this well commitment, one well will be drilled this year by ENI, Cieco and Faroe Petroleum. We are pleased with this development, which demonstrates Faroese exploration activity being in a positive process.”

The licence period is extended to 2014, with potential extention to 2015, depending on the overall work programme.