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
-
Do you qualify for the Winter Fuel Payment if you live abroad?The Winter Fuel Payment will be means tested for expats living in Europe, in line with the new rules impacting those in the UK. But a quirk in the system means not all countries are eligible.
-
What the Employment Rights Bill means for your jobNew workplace reforms are set to give employees new rights to benefits and flexible working
