Faroe Chief Executive Officer Graham Stewart said the company was "very pleased" with results from the Rodriguez license area offshore Norway.
"This significant discovery gives the partnership a good indication of further upside potential on the rest of the license block," he said in a statement.
While drilling encountered a natural gas column measuring just less than 30 feet, the company said it estimated the size of the discovery to be 19 million-126 million barrels of recoverable oil equivalent.
Drilling there was the first for the company and it said more work was needed to determine the extent of the discovery.
The field is operated by a division of Germany energy company Wintershall. The discovery was confirmed by the Norwegian Petroleum Directorate.
Stewart described the 2013 drilling season for his company as "active," with operations planned in the North, Norwegian and Barents Seas.