More good news in the oil and gas industry this week, Faroe Petroleum have made the exciting announcement that they have found oil off Norway. Despire this find, shares in Faroe Petroleum have dropped. This is because it has been suggested that the oil find was less than what the company had hoped for.
The company announced that a drilling activity near the Pil discovery in the Norwegian Sea had struck oil. Faroe Petroleum had hoped that it would find between thirteen and thirty one million barrels of oil.
If the company have found that amount of oil, Faroe is set to gain between three and eight million barrels. This is because Faroe has a twenty five per cent stake. At the beginning of the year, Faroe had close to thirty one million barrels and this new find could be a remarkable addition to its portfolio.
Faroe Petroleum are sure to be celebrating after this find, as they have not been too lucky recently. Two other drilling activities off Norway that Faroe Petroleum conducted unfortunately turned out to be dry.
However, despite this positive announcement, the company’s shares fell. As mentioned it has been suggested that the drop in shares has been put down to the amount of oil found.
Faroe also had a bit of a nightmare with the southern part of the Boomerang well. The company stated that they were unfortunate not to find any gas or oil. But, in April, the company made a find in the Skime East well. This find was less than what they were hoping for, but they did say that the find was showing signs of future success.
Incidents like these show just how risky and challenging drilling work in the oil and gas industry can be. Unfortunately, this isn’t the only thing that oil and gas companies need to worry about. The declining price of oil has been a huge problem for many oil and gas organisations.
The Chief Executive of Faroe Petroleum said: “We are pleased to announce the results from the Boomerang well, which adds further resources to the Pil area from a new reservoir. This appraisal and exploration well has provided a significant amount of important data and again proven how prospective the Pil area is.”
The company is due to start drilling in the Blink well soon. Again, the company have suggested there is huge potential in this well and are excited to see the results