Page last updated at 10:15 GMT, Friday, 23 April 2010 11:15 UK

Gas strike for Faroe Petroleum

oil platform
The strike is Faroe's first discovery in the Norwegian Sea

Aberdeen-based exploration company Faroe Petroleum has discovered gas in the Norwegian Sea.

The discovery was made at the Fogelberg exploration well in which Faroe has a 15% stake.

The company said it estimated the reserves to be the equivalent of between 19 million and 95 million barrels of oil.

Faroe said this strike reduced the risk of its exploration prospects in the area.

Faroe was awarded the Fogelberg licence in 2007.

Graham Stewart, chief executive of Faroe Petroleum, said: "We are very pleased to report the successful outcome of this exploration well.

"Fogelberg is Faroe's first Norwegian discovery and in addition to its commercial potential, we believe we may have now unlocked the considerable upside in our licence position in this core Halten Terrace area, in which we hold six further licences. "

Faroe's share price increased on the news.

The company's value has increased significantly since last autumn when an exploration well near the Shetland Islands unearthed a substantial gas reservoir.

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