LONDON (Alliance News) - Faroe Petroleum PLC Wednesday said it has failed to find a commercial oil discovery within the Kvalross exploration well in the Barents Sea.
The well was targeting two independent targets, namely the Kvalross prospect within the Lower Triassic Klappmyss formation and the Kvaltann prospect within a Mid-Late Triassic Snadd formation channel.
However, Faroe said although "good quality" sands were encountered in the Kvaltann prospect, the sands were found to be water wet, whilst the main Kvalross target yielded hydrocarbon shows that were not in good quality reservoirs - meaning it failed to find any commercial discovery.
"Whilst the results for the Barents Sea Kvalross well are disappointing, we are pleased that the well has been drilled significantly below budget and to have encountered hydrocarbon shows which will add to the large data bank we now hold over this prospective frontier area," said Chief Executive Graham Stewart.
"We look forward now to the next two exploration wells in our programme. The near-field Brasse well in the Norwegian North Sea and the Njord North Flank well in the Norwegian Sea are scheduled to be drilled in the summer and second half of 2016 respectively," he added.
Faroe, which has a 40% stake in the well, said the operator drilled the well to its target vertical depth of 2,917 metres, and the well is now being plugged and abandoned. Faroe said that will take around 60 days, which is less than its timing budget of 83 days.
Faroe shares were down 1.2% to 60.50 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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