Shares in Aberdeen-based E&P firm Faroe Petroleum fell 4.23% Monday after it discovered oil and gas off the coast of Norway but said the find was too small to be developed on its own, the (Scotland) Herald said.
The company said: “Due to the presence of a large gas cap in the reservoir, [the Novus well] is unlikely to be of commercial size on its own; nearby de-risked prospects and leads offer potential for a future commercial combination.”
Faroe holds a 30% stake in the new discovery, which it estimates to have between six and 15 million barrels of oil equivalent in recoverable hydrocarbons.
The Novus well is nine kilometers south of the Statoil-operated Heidrun field in the Halten Terrace hydrocarbon province of the Norwegian Sea.
Novus had earlier success in the area, with the Maria, Fogelberg and Rodriguez discoveries.
Analysts at Credit Suisse cut their price target for Faroe by 8% to 119p.
Faroe is also drilling the Butch East well in the same area, in which it has a 15% interest, the Herald said.