Shares in Faroe Petroleum (FPM) jumped as much as 10 per cent following news of a successful flow test at the Pil exploration well. The North Sea and Norway-focused oil producer said the well flowed at a stable rate of 6,710 barrels per day and it now believes the field is much larger than originally perceived.
The preliminary estimated range of recoverable resources is between 50m and 170m barrels of oil-equivalent (boe), of which 8m to 20m boe is gas, compared with pre-drill expectations of around 40m boe. Faroe will now drill two sidetracks to test further prospects and firm up the size of the discovery.
In other news, Faroe announced its Solberg well found gas and condensates in smaller quantities than expected. The company will assess the field and other nearby discoveries to see if combined they have commercial potential.
