Faroe Petroleum shares retreat on Icelandic licence win

<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.

Find the latest spread betting strategies for the commodities market at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.