Faroe Petroleum shares retreat on Icelandic licence win
City Index December 4, 2012 10:15 PM
<p>A petroleum drilling company has seen its shares slide as it secures a licence for exploration on the Icelandic shelf.</p>
Shares in Faroe Petroleum have retreated on the London Stock Exchange this afternoon (December 4th) on news the Aberdeen-headquartered company has secured provisional exploration licences on the Icelandic continental shelf.
Experts have claimed the Arctic will be the next major oil drilling region with reserves of some 20 billion barrels of the commodity and Faroe said samples from the Dreki area had a working hydrocarbon system.
The company – which focuses mainly on exploration and production opportunities in the North Sea – claims its licences as "extensive", encompassing seven blocks located inside the Arctic Circle to the north-east of Iceland.
A drilling campaign in the Arctic region by Edinburgh-based rival Cairn Energy failed to discover oil and gas there.
At 16:10 GMT, Faroe Petroleum lost more than one per cent on the London Stock Exchange, sliding to 137.25p after hitting its 52-week low last week, when it plunged to 135.00p.
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