BP and Shell Come Up Dry Offshore Faroes Islands

A test well in a license held by BP and Shell off the North Atlantic Faroe Islands proved dry, the islands' Ministry of Petroleum reported on Thursday.

"Once again we have to state that the drilling operation did not yield the expected result," the ministry said. "The Svinoy exploration well penetrated the objective targets and demonstrated the presence of both oil and gas, although of non-commercial quantities at this location," it said. Earlier this month a test well drilled by Statoil also proved dry.

The well was drilled in waters of 3,523 feet to a total depth of 14,285 feet below sea level terminating in layers of Paleocene age.

"Establishing that the Faroe Shelf holds a working petroleum system is, however, positive and considerably improves our expectations to finding oil in commercial quantities in the future," the ministry said.