Faroe shares slump as Cooper well proves another ‘disappointment’

By PETER RANSCOMBE
Published on 24/08/2012 23:12

SHARES in Faroe Petroleum dipped by as much as 12 per cent yesterday after the Aberdeen-based oil and gas driller revealed “disappointing” results from its Cooper exploration well off the coast of Norway.

The Aim-quoted explorer has plugged and abandoned the well after no oil flowed from its deepest depths.

Chief executive Graham Stewart said his team would be poring over data collected from the prospect – which was drilled by Scottish Gas-owner Centrica – after indications of oil were found at other points along the sides of the well.

Stewart added: “Our high-impact drilling campaign continues with the North Uist well with BP as operator, west of Shetlands, and we look forward to spudding the Spaniards well in the UK with Premier Oil as operator in October.”

Sam Wahab, an oil and gas analyst at Seymour Pierce, said: “This is clearly disappointing news for Faroe, with Cooper previously being the company’s only exploration success story so far this year.”

Faroe enjoys an enviable reputation among analysts for its high success rate with its exploration wells. But the firm has been hit by a series of “disappointing” results so far this year, saying in February that its Bolan and T-Rex wells off the coast of Norway had found oil but not in high enough quantities to make them commercially viable.

News of the Cooper disappointment came a day after Faroe revealed it is buying into a Talisman well in the Barents Sea.

The stock rallied slightly later in the day to close down 14p at 145.25p, a fall of 8.8 per cent.