Falkland Oil and Gas has provided an update on drilling operations at its Loligo prospect, following market speculation which has seen the value of the companies shares fall by almost 30% at one point on Monday.
The well has been drilled to a depth of 3.900 metres and is expected to reach total depth within the next 24 hours. Drilling operations are approximately five days behind schedule, principally as a result of having to run an additional string of casing in the top section of the well. No abnormal pressures have been encountered during the drilling of the well and all operations have been conducted without issue.
According to Falkland Oil and Gas, a further announcement will be made within the next seven days, once the well has reached total depth and wire-line logging operations have been completed.
FOGL is operating to the south and east of the Falkland Islands.
Speculation in the market followed press reports on the industry which included Namibia, west coast of Africa, where Chariot Oil & Gas preliminary logging results indicated that no commercial hydrocarbons were found at the Kabeljou exploration well which was being plugged and abandoned.
Chariot Chief executive Paul Welch said: Whilst the results from Kabeljou are disappointing, the fact that we encountered source rock within this well is important.
The Nimrod prospect was our largest target in the south but there are still other areas of interest in this licence and these well results may provide us with the ability to identify additional prospectivity in other horizons.
Information of this detail is invaluable when working in frontier environments so this well will have a significant impact on our future exploration program. We will be discussing these findings and the next steps with our partners Petrobras and BP and will update the market with plans in due course.