Thursday, December 6th 2012 - 21:09 UTC

FOGL ends drilling program in south Falklands; begins further seismic surveying

Falklands Oil & Gas (FOGL) announced Thursday it had abandoned its Scotia exploration well in the south basin after disappointing results, thus completing its 2012 two-well drilling (Loligo and Scotia) program in the Falkland Islands.

The Leiv Eiriksson rig will soon be back on its way to Norway

“Whilst reservoir quality at this particular location was poor, it should be recognised that .... Scotia covers an area of approximately 350 square kilometres. As such, further technical work is required to assess just how representative this result is, and whether or not better quality reservoir may exist elsewhere within Scotia”, said FOGL in an official release.

The Leiv Eiriksson rig will now be demobilised and returned to Norway in the near future while PGS M/V Ramform Sterling is expected to arrive in the Falklands and commence 3D seismic program.

“The well data which was drilled to a depth of 5.555 meters will be invaluable for calibrating the forthcoming 3D seismic program” and when combined with detailed analysis from the Scotia well, should allow identification of better quality reservoir and differentiation between oil and gas prospects”.

FOGL CEO Tim Bushell in the brief statement thanked all those involved in the planning and execution of the drilling campaign and anticipated the company was looking forward to evaluating the results of the two wells drilled in 2012 and incorporating these, together with the output from the forthcoming 3D surveys, into our future drilling plans.”

The release also said that after the 2012 drilling program was completed it would have 220m dollars cash in the bank. But the market has taken the news badly, with the company's shares slumping 46% to 34p.

Merchant Securities said: “The immediate result is a disappointment as the well did not confirm the presence of oil or high quality reservoir. We are reducing our target price to 57.7p from 152.0p to reflect that the Scotia well results did not confirm a commercial discovery. We are changing our recommendation from buy to sell”.

The FOGL release comes shortly after Desire Petroleum issued a positive update on its operations in the Falkland Islands and Rockhopper Exploration announced share purchase operations by Odey Asset Management LLp and UBS Ag London Branch.

13 comments Feed

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1 Helber Galarga (#) Dec 06th, 2012 - 10:08 pm Report abuse
as Maradona would say....

keep sarking on it
2 Joe Bloggs (#) Dec 06th, 2012 - 10:13 pm Report abuse
I thought he said if you can cheat, do it.
3 ProRG_American (#) Dec 06th, 2012 - 10:44 pm Report abuse
More surveying, more digging and scratching, but no oil.
4 Islander1 (#) Dec 06th, 2012 - 10:56 pm Report abuse
ProArgie 3 - and how many offshore wells were drilled in Arg waters for every commercial find one?
Early days in the southern basin yet! And of the 4 drilled in the southern basin - 3 came up with varying levels of gas and oil - not bad so far.
5 José Malvinero (#) Dec 07th, 2012 - 12:50 am Report abuse
Oh, Oh, in Scotland reservoirs are scarce ... us go to “our” closest islands: Las Malvinas Argentinas ... and prove there!
If I had my way, I would wait with torpedoes!
6 so_far (#) Dec 07th, 2012 - 03:08 am Report abuse
The Leiv Eiriksson rig and referendum ploy in Malvinas have a identical result........waste of time, money and credibility.....pathetic.
7 Marcos Alejandro (#) Dec 07th, 2012 - 03:22 am Report abuse
Another day, another failure.
8 lsolde (#) Dec 07th, 2012 - 09:10 am Report abuse
Why are you malvinistas concerned?
lts our sea-bed, not yours.
lts our cost, not yours.
They are our ££££s, not yours.
lf there is a loss, its our loss, not yours.
And if there is oil, then its OUR OIL, not yours.
ln fact you have no business here at all, move along please.
@5 José Mal-de-dum-dum.
What sort of torpedoes, niño?
The Argentine ones that run in reverse? ha ha ha.
9 reality check (#) Dec 07th, 2012 - 11:11 am Report abuse

There was an article on here that said the ARA submarine fleet, fleet not boat, had 17 hours submerged training time a month!

So you know what you call an ARA submarine sitting on the sea bed near a rig?

10 Conqueror (#) Dec 07th, 2012 - 01:59 pm Report abuse
@5 Why? Do you think you could paddle one? Do tell us how many “vessels” you have equipped to launch torpedos. And how many of them are capable of staying “at sea” for more than 24 hours? Nearly half your “fleet” is in Africa and can't move.
@6 Your concern is noted. Would you like to send a loan? A suitably-filled suitcase left at Mount Pleasant Airbase will be acceptable. Dollars or pounds sterling only please. For health and safety reasons. It wouldn't be possible for you to carry enough suitcases filled with pesos for more than a pace!
@7 I know. It's sad, isn't it? Never mind. You'll be able to try again tomorrow. Look on the bright side. Another 200 years and you “might” not be a failure. Hold your breath, why don't you?
11 aussie sunshine (#) Dec 08th, 2012 - 01:01 am Report abuse
I don´t think the stock holders are very happy! Ummmm??
12 Pete Bog (#) Dec 08th, 2012 - 01:44 pm Report abuse
“Another day, another failure.”

But no country, not even the Falklands could fail as badly as Argentina.
13 reality check (#) Dec 10th, 2012 - 04:23 pm Report abuse
Nows the time to buy the stock, because it's gonna pay off when the oil comes ahore.

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