Graham Stewart, chief executive officer at Faroe Petroleum, said the companies have declared success at the so-called Bue prospect in the Njord field of the Norwegian Sea.
Combined with the existing Pil discovery, Faroe said it estimated the combined reserve potential at between 80 million and 200 million barrels of oil equivalent, of which about 80 percent exists as oil.
"The partners are now preparing next year's exciting exploration and appraisal program to assess the further upside potential in the license and evaluating different development alternatives," Stewart said in a statement.
Norway is one of the top oil and natural gas producers in Europe.
Atle Sonesen, managing director at VNG Norge, said the partners now have a better understanding of the reserve potential in the Norwegian Sea assets. The partners "strongly believe" the sites have a good chance to be strong producers.
"We are now preparing next year's exploration program and evaluating different development alternatives," he said in a separate statement. "The results from the planned exploration wells will be decisive for the choice of production solution in a possible development of Pil, Bue and hopefully new discoveries next year."