Faroe spuds Rungne exploration well

Oil and gas outfit Faroe Petroleum has spudded its Rungne exploration well, a near field exploration target in the Norwegian North Sea.

Faroe said the Rungne prospect, which is located in 30km north-west of the company's Brasse field and immediately north of the producing Oseberg oil field, provided the group with "significant upside potential" in one of its core areas.

The European-focussed explorer revealed that drilling operations would be undertaken using a semi-submersible Transocean Arctic rig with the help of its current joint-venture partners Lundin Norway and Spirit Energy Norge.

Faroe, Rungne's operator, holds a 40% interest in the well, Equinor Energy also holds a 30% stake in PL825, while Spirit Energy and DNO Norge have a 20% and 10% interest in the asset, respectively.

Chief executive Graham Stewart, said: "This is a very active exploration period for Faroe. We have six exploration wells and one appraisal well committed to drill over the coming 12 months, and many more wells lining up for drilling thereafter."

"These exploration wells are targeting a significant unrisked resource potential net to Faroe of 80-150mmboe."

As of 0900 BST, Faroe shares had picked up 1.18% to 153.80p.