OIL AND gas explorer Faroe Petroleum yesterday said that appraisal drilling on a well in the Norwegian Sea had encountered oil, with a second well planned in the next few days.
The Aim-listed firm, which has activities in Norway, the Atlantic margin and the North Sea, owns a 25 per cent stake in the well, located in the Pil discovery.
The second well will test for oil in the separate Bue prospect, which Faroe says has the potential to add further volumes to the Pil project.
“The successful well result on this Pil appraisal side-track adds further value to Faroe’s already substantial position in this prolific part of the Norwegian Sea,” said chief executive Graham Stewart.
The Pil project is operated by VNG Norge, which owns a 30 per cent stake, with partners Spike Exploration and Rocksource Exploration, who own 30 per cent and 15 per cent respectively.
“This is clearly another positive result for Faroe, with high impact exploration remaining a key theme in the company’s strategy, underpinned by its robust production base,” said Sam Wahab, analyst at Cantor Fitzgerald.