Faroe Petroleum Plc said on Monday it had discovered gas at its Glenlivet exploration well, its first gas find in the Atlantic Margin, and drilling a potential sidetrack well was being considered.

Glenlivet is Faroe's first Atlantic Margin discovery and confirms the presence of a significant accumulation of hydrocarbons in a high-quality reservoir, Chief Executive Graham Stewart said in a statement.

Faroe said preliminary log analysis indicated a net gas column of 201 feet with no gas-water contact encountered.

The company, which plans to to drill five wells in the Atlantic Margin, said its second well to test the Tornado oil prospect -- located close to BP's producing Schiehallion field -- was scheduled to start drilling by the end of September.

Faroe plans to drill a further three wells - the Anne Marie oil prospect in the Faroes, and the Cardhu oil prospect and the Lagavulin oil prospect in the UK.

Shares of the company were up 17.05 percent at 105 pence at 1105 GMT on the London Stock Exchange. (Reporting by Ramkumar in Bangalore; Editing by Unnikrishnan Nair)