The shares surged as much as 15 percent to 123 pence in London trading, the biggest gain since August 2011. They were up 13 percent at 8:58 a.m.
The Pil well encountered oil and gas in the Rogn Formation, which has been productive at Royal Dutch Shell Plc’s Draugen field to the northwest, the Aberdeen, Scotland-based company said in a statement.
Discoveries such as this are key to halting a decline in oil and gas production from the North Sea. The Pil resource may be on track to hit the high end of the pre-drill estimate of about 50 million barrels of oil equivalent, Oriel Securities Ltd. said in a note to clients.
Faroe has a 25 percent interest in the PIL license. VNG Norge AS and Spike Exploration Holdings AS each have 30 percent and Rocksource Exploration Norway AS has the rest.
In November, Faroe reported an oil discovery at the Snilehorn well in the Norwegian Sea, in which it has a 7.5 percent stake.
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