MercoPress. South Atlantic News Agency

Falkland Oil & Gas

Shares in Falkland Oil & Gas (100.5p) have slipped from the recent 135p high, but they look a good, if speculative, buy.

Earlier this month the company said a seismic survey of the South Falkland Basin greatly exceeded initial expectations. It has identified 130 potential drill targets, up from eight when the company listed on Aim in October last year.

A number of these may contain more than 200m barrels of oil and Falkland is expanding its explorations.

The company owns a licence area the size of the North Sea oil field.

As broker Peel Hunt points out, even a modest success can provide extraordinary returns.