FOGL and Edison strike gas discovery to the East of the Falkland Islands
Falkland Oil and Gas Ltd announced Monday that the well drilled to the East of the Falkland Islands to a depth of over 4.000 meters is a gas discovery. The statement comes after a rough week for FOGL when its shares plummeted following poor and unfounded press coverage.
“The Loligo well has proven a working hydrocarbon system in the northern part of the East Falkland basin. The results also demonstrate that Loligo (prospect) is a viable stratigraphic trap. It is clear from the initial well results that the main hydrocarbon phase within the T1 to T5 aged reservoir objectives is gas” point out the company’s release.
However “it has not been possible to determine whether this gas has any liquid content”, but “gas bearing zones were encountered over a 1,300 meter vertical interval from 2,420 to 3,720 meters.
Well 42/07-01 was drilled to a depth of 4,043 meters with FOGL as operator of the well, holding a 75% interest with joint venture partner Edison International Spa holding the remaining 25%.
According to the release the well penetrated six Tertiary aged reservoir objectives on prognosis comprising T1, T1 deep, T2 (Trigg), T2 deep (Trigg deep), T3 (Three Bears) and T5 targets, all of which had been identified on the basis of their seismic amplitude responses.
“Very strong gas shows (C1 to C5) were encountered whilst drilling through each of these horizons. Analysis of the wire-line log data indicates that all six targets comprise fine grained sandstones, siltstones and clay-stones. FOGL interprets that these sediments have been deposited either outside, or at the distal (outer) end of the slope channel system”.
Gas bearing zones were encountered over a 1,300 meters vertical interval from 2,420 to 3,720 meters. Petro-physical analysis of the T1 to T3 intervals inclusive (2,420 to 2,885 meters) indicates porosities ranging from 18% to 35% in the gas bearing zones.
But “due to the thin bedded nature of these sediments it is difficult to assess precisely both hydrocarbon saturation and the total net hydrocarbon bearing reservoir.
Preliminary estimates however, suggest hydrocarbon saturations ranging from 40% to 60% and net hydrocarbon bearing reservoir of between 10 and 20 meters.
Within the T5 target two main hydrocarbon bearing zones were encountered (3,462 to 3,558 meters and 3,608 to 3,705 meters). The net hydrocarbon bearing reservoir in these two zones was 46 and 59 meters respectively. Porosities ranged between 23% and 30%, averaging 24% and hydrocarbon saturations between 40% and 75%.
FOGL now intends to plug and abandon the well, which is expected to take approximately 10 days. FOGL and Edison believe that it would be premature to drill a second well on Loligo at the current approved location (Loligo north-west) before having undertaken detailed analysis of the current well results.
Accordingly “the decision has been taken that the next well will be on the Scotia prospect in the Mid Cretaceous fan play. On the basis that Scotia is also drilled within budget, it is estimated that the Company's cash balance post the 2012 exploration campaign will not be less than 200m dollars.
FOGL CEO Tim Bushell said that Loligo is a valid trap that contains multiple gas bearing zones, with over 100 meters of hydrocarbon bearing reservoir and “we now need to focus on reservoir distribution within Loligo in order to find the sweet spots. A work program will be undertaken to achieve this, assess the resource potential and commercial viability of this discovery”.
“We now have a positive result from one of our major exploration prospects. This, together with the results from our next well, will help determine the priorities for our future exploration efforts. With our partners Noble Energy and Edison, we have the technical resources and funding in place to carry out substantial 3D surveys, followed by further drilling in 2014” said CEO Bushell.
Suggested Stories
-
Jun 19th 2013
India-Argentina pledge to improve trade; Timerman thanks Delhi support on Malvinas dispute
-
Jun 18th 2013
Thousands camp in the Peruvian Andes to protect a lake from major gold mining project
-
Jun 12th 2013
Norway’s Statoil cools new project: tax changes and government delay in building support port
-
Jun 12th 2013
Argentina promotes oil and gas opportunities at the British-Argentine Chamber of Commerce in London
35 comments Feed
Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.
Top tip - you haven't cornered the world of realpolitik with this one.
You are as thick as Marcos!
As usual the world sees any RG rantings as all hot air, as we sat in UK ''all mouth & no trousers''
Well done FOGL great news for Falklands...god save the queen .....hussars
well tough little aries,
you may intimidate the spanish,
but when it comes to real men,,
you have as much chance of intimidating the falklanders,
have, you have of invading china lol.
Real Argentine inflation - 25%
(even CFK has put up chil;d benefit by 26%).
So, if a government agency like INDEC is incapable of telling the truth how can anyone expect an Argentine politician to be truthful about the history of the Falklands?
Muppet.
“Nothing concrete. Juts read the article.” really?? Just wait a while, then stand back and see how a success economy, a trusted government which respects it's people and industry can work together for the common good..............
I know, I know!!! A leader that doesn't line his/her own pockets??? that's a pretty hard image for you Argentinian's to picture isn't it?
lolololololol
online.wsj.com/article/BT-CO-20120917-712175.html
”Gas, gas, beautiful gas....
Indeed :-))
Worried investor
“FOGL will charter a small boat for the core samples to arrive in the UK in 2 months time and another 2 months for analysis”
This “gas find” smells like a fart and feels just like a duster.
“now get ur arse streetside” made me lol irl
I think I saw ProRG's mom the other day here while I was traveling through Quito, was walkin down the street, took a wrong turn and there in the alleyway was a horrendous looking, heavily painted (think Cristina) transvestite, and all it said to me was “fucky?” as I walked by it. Almost made me puke.
Thanks dear.
Ships sail from here to UK every 4-5 weeks so if you just miss one with a shipment then it is logical that it can take 2 months - a month until the next one which takes a month to reach UK - God you are THICK!
With major Int partners FOGL are not going to tell a lie- we leave lies to Kitschener Govts - if it was dry no hydrocarbon traces - a “duster” - they would have said!
It was not dry - unspecified and unverifiable(as yet) hydrocarbon volumes present - so that is what they have said!
You really do live in a fantasy world - one that is fast collapsing around you.
After the media circus hype when drilling first started with Desire - the Oil Operators now act cautiously and only say something when they have evidence - to try and minimise the circus hype.
Gas is OK but oil is better
Apparently if estimates of the amount of gas are verified, the Loligo prospect alone, would solve Argentina's entire energy needs for the next 40 years.
Shame Kirchner has condemned her fellow citizens to fuel poverty and/or the dodgy US fracking industry.
It won't be “dodgy” if Chevron actually agreed to exploit the resources...but Chevron didn't, they're simply going to stand by and watch YPF attempt to explore, until after revolution kicks Cristina out, THEN they'll be the first foreign company on the scene for new gov, and they'll start seriously exploiting the reserves.
Chevron wouldn't seriously work with a gov like Cristina, they just want a foot in the door for when revolution comes.
What happened during my short walkabout along the Patagonian shores…..?
I read that the population of Malvinas is getting smaller and older…
And that Camp is becoming even more des”camp”ado… ;-)
I read that FOGL striked a “Gas Discovery” in our waters…
And that its share price went duly, from about 71pennies pre-discovery to a whopping….......................................
~ 69 pennies post-discovery… ;-)
I read that the English police finally apologized for Hillsborough…
What’s 23 years between friends… ;-)
Great news, all of them
the oil will come, soon, later, sooner or later...
the population always shrinks before it grows,
opps we forget.
and its still british .lol.
“I read that FOGL striked a “Gas Discovery” in our waters…”
You a Falkland Islander, Thunk?
Politics in Argentina (as in the rest of the world) are quite complicated.
We have a high percent of “reactionary people” down here......
But they are our “reactionary people” and we have to work together.
(we have tried the other way, it didn't work :-(
My personal dream for a transversal project would be that Mrs. Fernandez de Kirchner nominated Mr. Binner as her candidate for 2015 ;-)
I'm a dreamer.............
I hope in your short walkabout you telephoned CFK to tell her to stop kicking off native Argentinians off their lands.
When's Argentina going to start all its expensive, pointless, time consuming legal action?
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!