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.
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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.