Shares in Aberdeen-based oil and gas explorer Faroe Petroleum slid after the company said it had found traces of oil at its Anne Marie prospect off the Faroe Islands.
The company said it had found "robust evidence" of oil during drilling operations at the site.
Faroe said it was now evaluating the size and nature of the discovery.
But the find was not as good as market expectations and shares in Faroe fell by almost 8% on the news.
Faroe has a 12.5% share in the joint venture at Anne Marie. The other companies involved are ENI Denmark (25%), Dana Petroleum (25%), OMV (20%), Cieco E&P (12.5%) and First Oil Expro (5%).
Graham Stewart, chief executive of Faroe Petroleum, said: "Whilst we did not encounter thick reservoir sands at the Anne Marie well location, the discovery gives us significant encouragement to continue exploration efforts in this licence, which we have held, together with ENI, for over 10 years."