Independent oil and gas company Faroe Petroleum has commenced production on the Statoil-operated Hyme oil field in the southern part of the Norwegian Sea.

The field ties back to the Njord A platform, which is located 19 kilometres away, in which Faroe also holds a 7.5% interest.

The Hyme field was discovered in June 2009 and has been developed through a dual-lateral production well and a water injection well, drilled through a sub-sea template.

Faroe Petroleum reported that the operator estimates the Hyme field contains approximately 30m barrels of oil equivalent (mmboe) (net to Faroe 2.25 mmboe), predominantly oil, and expects the field to extend the production life of the Njord field to beyond 2020.

Faroe has funded its share of the development costs from cash flow generated from its producing interests.

It is expected that the field will generate between 10-15% of the company's estimated 2013 daily production.

The partners in the Hyme development are Core Energy AS VNG Norge AS, E.ON Ruhrgas Norge AS, GDF Suez E&P Norge AS and Statoil Petroleum AS.

CEO: Hyme oil field will provide 'significant boost' to production incomeGraham Stewart, Chief Executive Officer of Faroe Petroleum, commented: "We are delighted to see the Hyme oil field come on stream on schedule and on budget.

"This important, high quality field, will provide a significant boost to our production income and funding for the forward programme, while also extending the field life of Njord."

Faroe Petroleum's share price was down 0.91% to 136.75p at 09:37 on Tuesday.
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