March 6 (Bloomberg) -- Faroe Petroleum Plc, a U.K. oil and gas explorer focused on the North Sea, rose the most in 2 1/2 years in London trading after reporting a discovery off Norway.
The shares surged 11 percent to close at 119.5 pence, the biggest one-day gain since August 2011. Trading volumes were 30 times the three-month daily average.
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, Faroe said today in a statement.
The find follows a November oil discovery by Faroe and its partners at the Snilehorn well, in which it has a 7.5 percent stake. Such successes are key to stemming a decline in output from the North Sea, where maturing reserves have forced some producers to seek new fields elsewhere.
Pil’s resources may reach the high end of a pre-drill estimate of about 50 million barrels of oil equivalent, Oriel Securities Ltd. said in a note. Aberdeen, Scotland-based Faroe owns 25 percent of the license. VNG Norge AS and Spike Exploration Holdings AS each have 30 percent and Rocksource Exploration Norway AS holds the rest.
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