Talisman Energy has encountered oil after drilling north of the Varg field in the North Sea, the company has announced.

The company, which has finished drilling appraisal well 15/12-21 A, said that the well encountered oil in the same reservoir rocks as the discovery well.

The appraisal well shows that the size of the discovery could produce 6-21 million standard cubic metres of recoverable oil equivalents, the company said in a statement.

The appraisal well was drilled to a vertical depth of 3,306m below sea level by the Maersk Guardian. The well will be permanently plugged and abandoned.