NORTH Sea-focused Faroe Petroleum has said recent drilling has confirmed a find it made off Norway last year is commercially viable in the current low oil price environment.

Aberdeen-based Faroe said a well to appraise the Brasse discovery had struck oil two kilometres from the original find underlining the scale of the field.

“Preliminary analysis of the well results confirm Brasse as a commercial discovery,” noted chief executive Graham Stewart.

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The field lies relatively close to existing production facilities which it could be connected with.

Mr Stewart said the success provided further evidence that Faroe can make progress with the drill bit amid difficult market conditions.

“Brasse is a significant project for Faroe and the region and it also highlights Faroe’s ability to continue to add significant value through low-cost drilling in our core areas,” he said.

Faroe appears to be reaping the rewards of making the decision to focus attention on areas it knows well amid the crude price plunge, which started in 2014.

This has resulted in other companies cutting exploration activity in what are regarded as frontier areas, to focus on lower risk activity in familiar regions.

Faroe has been able to capitalise on the sharp fall in the cost of support services in the North Sea, where many firms have cut spending since 2014 leaving suppliers jockeying for position in a shrinking market.

Norway offers generous tax breaks for exploration.

Mr Stewart has underlined Faroe’s interest in making more acquisition in the North Sea, where assets prices have fallen amid the downturn triggered by the oil price fall.

Faroe will update estimates of the size of Brasse following completion of ongoing appraisal drilling and testing operations. It has said the field could contain up to 80 million barrels oil equivalent.

Shares in Aim-listed Faroe Petroleum closed up 1.25p at 85p.