The Blane oilfield, which was discovered in 1989, is located on the Central Graben of the UK continental shelf extending into the Norwegian sector.
The field was developed as a subsea tie-back to the BP-operated Ula platform, which is located in the Norwegian continental shelf and comprises two horizontal production wells with gas lift and one water injection well.
Blane is a low cost producing field. Its average gross production rate during September 2010 was 11,964 barrels of oil equivalent per day.
The remaining 2P reserves are estimated at three million barrels of oil equivalent net to Faroe Petroleum.
As part of the transaction Faroe also agreed to farm out a 20% interest in the Atlantic Margin Rannva exploration licences, which straddle the UK / Faroe border.
These prospective licences cover 2,794km² and are located in a water depth of 500m, 170km west of the BP-operated Schiehallion oilfield.