Faroe Petroleum shares soar on oil strike

The Pil well is one of three the company is currently drilling in the Norwegian Sea

Shares in the Aberdeen-based oil and gas firm, Faroe Petroleum, have soared after the company announced it had struck oil and gas in the Norwegian Sea.

The company made the discovery in the Pil well in which it has a 25% stake.

Testing is taking place to establish how big the reservoir is, however, Faroe said the well was being assessed for possible fast-track drilling.

Earlier this year the group said it had been awarded 10 new Norwegian licences.

Chief executive Graham Stewart, said: "We are very pleased to announce the oil and gas discovery at the Pil prospect and await the results of the production test.

"This discovery builds on Faroe's already significant position in this prolific part of the Norwegian Sea and we look forward to unlocking further potential on this licence."

He added that Pil was one of three exploration and appraisal wells the company was currently drilling in its "high impact exploration and appraisal programme".

Results are expected on the other two wells in the coming weeks.

Shares in the company were up almost 15% in early trading.