Falkland Oil and Gas Limited Rig Contract Signed (7730I)
June 04 2014 - 2:00AM
UK Regulatory
TIDMFOGL
RNS Number : 7730I
Falkland Oil and Gas Limited
04 June 2014
4 June 2014
Falkland Oil and Gas Limited
("FOGL" or "the Company")
Rig contract signed
FOGL, the oil and gas exploration company focused on its
extensive licence areas offshore the Falkland Islands, is pleased
to announce the signing of a rig contract.
Highlights
-- Rig contracted for a six well firm drilling programme commencing in early 2015
-- FOGL will participate in five wells: two wells operated by
Noble in the South and East Falkland Basin and three wells operated
by Premier in the North Falkland Basin
-- Up to eight option slots available for additional drilling
-- FOGL is fully funded throughout its five well programme
On 3 June 2014 Premier Oil plc ("Premier") signed a contract for
a dynamically positioned, harsh environment semi-submersible
drilling rig. In addition, several other related contracts have
also been entered into and these include a rig sharing agreement
with FOGL's partner Noble Energy Falklands Limited ("Noble").
The rig will be mobilised to the Falkland Islands to commence
the drilling programme in late Q1/early Q2 2015. This will comprise
a minimum of six firm wells; four wells operated by Premier and two
operated by Noble. A number of option slots have been secured which
will facilitate additional drilling. These comprise eight options
that can be exercised prior to the rig being mobilised and up to
eight further options that can be elected during the drilling
campaign.
The currently envisaged drilling schedule consists of two wells
in the North Falkland Basin operated by Premier, followed by two
wells in the South & East Falkland basin operated by Noble and
then a further two Premier operated wells in the North Falkland
Basin. The total firm programme is expected to have a duration of
some 240 days, excluding mobilisation.
FOGL will participate in three wells in the North Falkland Basin
on the Zebedee, Jayne East and Isobel Deep prospects with a
material, 40% interest in each of these wells. The prospects are
all located in licence PL004 to the south and east of the Sea Lion
field. The drilling location for each of these prospects has now
been agreed by the joint venture partners. FOGL estimates that the
three prospects have combined prospective resources (recoverable
oil) net to FOGL of over 200 million barrels.
In the South and East Falkland Basin FOGL will participate in
two Noble-operated wells. Prospect identification, based on the
recent 3D surveys is ongoing and will continue into the summer of
2014.
The sheer size of the surveys, with over 12,000 sq. km of new
data, and the number of prospects under consideration, is driving
selection of these well locations into Q3 2014. Resource estimates
for the target prospects have yet to be finalised, but will be
announced in due course.
As a result of the Company's strong balance sheet and previous
farm-out arrangements FOGL is fully funded for this five well
drilling programme.
Tim Bushell, Chief Executive commented:
"We are delighted to have secured a suitable deepwater rig.
FOGL will be the only company drilling in both the northern and
southern basins and will have by far the largest equity
participation in this campaign. As such, this rig contract
represents a major milestone for FOGL and will give our
shareholders exposure to an exciting, high impact and fully funded,
five well drilling programme in 2015."
- Ends -
Enquiries:
Falkland Oil and Gas
Tim Bushell, Chief Executive +44 (0) 207 563 1260
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RBC (Nominated Advisor and Joint
Broker)
Matthew Coakes / Daniel Conti
/ Jeremy Low +44 (0) 207 653 4000
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Jefferies Hoare Govett (Joint
Broker)
Alex Grant / Chris Zeal / Graham
Hertrich +44 (0) 207 029 8000
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FTI Consulting
Ed Westropp +44 (0) 203 727 1521
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This information is provided by RNS
The company news service from the London Stock Exchange
END
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