It's one of the classic problems faced by the oil and gas industry. A company will know hydrocarbons are present in their licence area, the question is, is there enough of the resource to make it commercially viable?
Faroe Petroleum has found two of its prospects in the Norwegian sea, "T-Rex" and "Bolan", just won't cut it.
Both sites were drilled by Faroe's partner on the project, 70% owner Maersk Oil; both returned oil "but not in commercial quantities".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
And there's the rub.
Faroe's stock had fallen 9% by 11:13 on the news, with Graham Stewart, the Chief Executive saying he was "disappointed the reservoir intervals were not as thick as we had hoped for".
BS
-
Are you one of 15 million people at risk of retirement poverty?Two-fifths of people in the UK aren’t on track for a minimum lifestyle in retirement, new data shows. Are there steps you can take to boost your pension?
-
150 banking hubs now open across UK – is there one near you?As the 150th banking hub opens its doors, a Post Office deal that offers basic banking services has also been extended until 2030. We explain what this means for you
