Independent oil and gas company Faroe Petroleum announced on Tuesday that the Norwegian Minister of Petroleum and Energy has approved the plan for the development and operation of the Fenja field.
The AIM-traded firm said the Fenja oil field is located 33 kilometres south west of the Njord production facility.
It explained that the field would be developed with three oil producers, two water injectors and one gas injector, which would be converted to a gas producer during the gas blowdown phase towards the end of field life.
The operator, VNG Norge, estimated that the field contained gross recoverable resources of 97 million barrels of oil equivalent, and was comprised predominantly of oil.
Fenja was expected to come on stream in 2021, with a planned field life of 16 years.
In February, Faroe Petroleum announced that it had executed a transaction with Suncor Energy Norge for the sale of a 17.5% working interest in the Fenja development for a cash consideration of $54.5m.
The Fenja PDO approval was the principal condition precedent to completion of that transaction, with Faroe retaining a 7.5% working interest in the Fenja development.
"We are very pleased to announce approval of the development plan for the Fenja field," said chief executive Graham Stewart.
"When Fenja comes on stream in 2021 it will contribute considerable cash flow and value to Faroe.
"Fenja is another prime example of Faroe's successful exploration model which continues to deliver considerable success and value - most recently with the announcement last week of the significant Iris/Hades discoveries in the Norwegian Sea."
Stewart said the "vast majority" of Faroe's 2P reserves and 2C contingent resources had been generated very cost-effectively through the company's "outstanding" exploration success.
"The recent monetisation of part of our Fenja equity to Suncor is testimony to the high quality and attractiveness of Fenja and our asset portfolio in general.
"Faroe now has the distinct advantage of being in a fully-funded position, with clear line of sight to deliver material organic production and value growth.
"We are continuing to pursue actively our significant exploration, appraisal and infill drilling programme with the aim of adding greater near term resource and value."
Opportunities to accelerate further growth through potential value-accretive acquisitions and disposals also continued to be a "key focus" for the company going forward, Stewart explained.
"Aside from the encouraging Fogelberg appraisal results, announced separately today, the company's exploration programme continues apace over the coming months with three further committed exploration wells in Norway - the Rungne (Faroe-operated), Cassidy and Pabow wells."