Faroe Petroleum (FPM) has struck oil off the coast of Norway, sending the company's share price up 14 per cent.
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The oil producer said its Pil exploration well intersected a huge new reservoir containing 135 metres of oil-bearing sands and 91 metres of gas-bearing sands. Faroe has a 25 per cent interest in the licence, with three independent explorers controlling the rest. Importantly, the reservoir has a "very high net-to-gross ratio", meaning it is fairly continuous, and is close to available infrastructure, being 33km from the Njord platform, so within tie-back distance.
