Faroe Petroleum has gained exposure to a big gas prospect in the Atlantic Margin area west of the Shetlands in an asset swap with Denmark's Dong.

Aberdeen-based Faroe said it had agreed to trade a 10% holding in the Glenshee licence for a 10% stake in the Glenlivet licence, which contains a prospect in a proven hydrocarbon play.

Dong has a rig under contract to drill the prospect in 2009. Faroe said the deal added a near-term highly prospective well to its drilling programme.

Glenlivet lies close to the Laggan gas field operated by Total, in which Dong also has a stake. It could potentially provide further important demand for the proposed pipeline running from the area to the Shetland Isles' Sullom Voe terminal.

The construction of a pipeline could have a significant effect on the economics of other finds made in the under-explored area, in which Faroe has high hopes of making big discoveries.

Following the transaction, Faroe will retain a 20% holding in the Glenshee licence, one of eight it will hold in the west of Shetland area.

Glenshee contains an oil prospect in respect of which a drilling decision will be taken no later than 2010.