Faroe shares up amid North Sea discovery

Graham Stewart, Faroe Petroleum chief executive

Shares of Aberdeen-based Faroe Petroleum, the independent oil and gas company, rose more than 5% after it announced an oil and gas discovery in the Faroe-operated Brasse exploration well in the Norwegian North Sea.

Graham Stewart, Faroe Petroleum chief executive, said: “We are very pleased to announce the oil and gas discovery at the Brasse prospect and await the results of the sidetrack.

“This discovery in one of our core areas, builds on Faroe’s already significant position in the Norwegian North Sea via a low cost exploration well.

“If the Brasse drilling results prove a commercial discovery, it could be tied-back to the Brage production facilities or alternatively to other nearby installations.

“Once there is further information in relation to results from the sidetrack well we will update the market.”

In a statement, Faroe said the Brasse well had been drilled to a depth of 2,780 metres.

The well encountered “approximately 18 metres of gross gas-bearing and approximately 21 metres of gross oil-bearing Jurassic reservoir which is believed to be analogous to the effective reservoir at the Brage producing oil field (Faroe 14.3%), located approximately 13 kilometres to the north of Brasse.”

Faroe said preliminary results “based on extensive coring, wireline logs and pressure data show that the well has encountered oil and gas in reservoir sandstones of good quality” and that “the presence of oil and gas has been confirmed subsequently by fluid sampling.”

A further announcement will be made when drilling is complete.