Faroe Petroleum (LON:FPM) are left disappointed after their latest offshore exploration leaves them empty-handed.
The firm announced their failure to discover commercial volumes of hydrocarbons at its Rungne exploration site in the North Sea near Norway.
The primary Oseberg formation’s only fruit was a water-bearing reservoir, and while the secondary Ness formation did bear a 17 metre net gas and condensate column, its prelim gas and condensate recoverable volume range was 0.5-3.9 million barrels, and was thus deemed not to be commercial in isolation.
“In a six well exploration programme some disappointing outcomes are inevitable,” chief executive Graham Stewart said.
“Although no hydrocarbons were present in the main Oseberg target we are pleased to have encountered hydrocarbons in the secondary Ness target which provides new data.”
“In addition to the ongoing Agar/Plantain well, results from which are expected shortly, Faroe’s exploration programme will continue over the remainder of the year with two further committed exploration wells in Norway: the Brasse East and Cassidy wells.”
The news comes a month after the Aberdeen-based firm announced their plans for North Sea exploration, with later announcements revealing that they were successful in securing an additional $100 million loan to bolster its future exploratory ambitions in the region.
Today’s news will come as a disappointment following attempts to reassert Britain’s place in the oil market, with price increases prompting a somewhat sluggish revival of commerce in Aberdeen.
Faroe shares are currently trading down 3.13% or 4.2p at 130p a share, as of 15:54 GMT, 14/11/18.
