NORTH Sea-focused Faroe Petroleum has suffered a reverse after making a foray into frontier exploration territory in the Barents Sea north of Norway.

The Aberdeen-based company said a well to test what it regarded as an exciting prospect had failed to find oil or gas.

When it started drilling work on the Bone prospect in January Faroe said the high impact well would test a structure with very significant volume potential.

The company put a brave face on the reverse yesterday. Chief executive Graham Stewart said the company was disappointed that no hydrocarbons were present at the “frontier location” targeted but the well provided important new data and information. This will allow further evaluation of the extensive licence Faroe holds in the Barents Sea province.

Faroe was able to capitalise on the generous support provided for exploration off Norway to limit the cost of the exercise.

While the well was drilled deep beneath the sea bed, it cost Faroe less than £2.5 million net of the relief provided by the government.

The Barents Sea is attracting increased attention as oil and gas firms hunt for areas that may offer previously unrecognised potential. The Bone well was operated by Eni, the Italian oil and gas major.

Faroe is preparing to drill a well to appraise the Brasse discovery it made last year in the Norwegian North Sea.

“We are also maturing a number of exciting new drilling targets in Norway with potential to take advantage of the continuing low drilling costs,” said Mr Stewart.