Faroe Petroleum is to acquire an 18% interest in the Blane oilfield from Eni UK and Eni ULX for £60m ($94.7m).

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.

Joint venture partners in the field are Talisman Resources, which holds a 43% stake, Nippon Oil with 14&#37, Roc Oil with a 12.5% stake and Dana Petroleum with 12.5%.

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.