Faroe Petroleum plugs and abandons Portrush well

Oil and gas company Faroe Petroleum said the Portrush exploration well in the Norwegian North Sea has been plugged and abandoned after no hydrocarbons were encountered.

Faroe said this was the first well to be drilled in the production licence in the Grimsan Basin, around 20 kilometres south west of the Draugen field and less than 10km south east of the Njord field.

Chief executive Graham Stewart said: “Whilst the results of this well are disappointing, we were fortunate in that we have been able to take advantage of reduced rig rates and associated drilling costs, which coupled with the Norwegian tax rebate system, realised a significantly lower well cost, net to Faroe.”

Faroe holds a 20% stake in the well, which is operated by Royal Dutch Shell.

At 1320 BST, Faroe shares were up 1.2% at 68.82p.