Hot Small Caps: Faroe Petroleum up on successful test

LONDON (Reuters) - Following is a round-up of key small cap movers on the London stock market on Tuesday.

3:32 p.m. - Faroe Petroleum up on successful West Breagh well test

Shares in Faroe Petroleum (FPM.L) jump over 29 percent after the oil and gas exploration group announces successful drilling of the 42/13-5 and 42/13-5z wells on the West Breagh gas field, located in the UK Southern North Sea Gas basin.

"This is a positive start to the year for Faroe and as a fully-funded exploration and development company with exposure to a multiple well drilling programme, we feel they are well placed to not only survive 2009 but also to offer investors the opportunity for capital growth," says Ambrian in a note.

The broker retains its "buy" recommendation.

2:16 p.m. - Empresaria falls; bleak outlook for staffers

Shares in Empresaria (EMPR.L), the AIM-listed international recruitment group, fall 7.8 percent after Edison offers a bleak prognosis for the staffing sector and cuts its earnings forecasts.

Edison slashes Empresaria's EPS estimates by 16 and 46 percent for 2008 and 2009 respectively, after the UK November report on jobs showed a dramatic drop in billings.

"With such an uncertain trading background across the territories, it seems sensible to take a cautious stance," Edison says in a note.