Falkland Oil and Gas Limited Operations Update (1659A)
September 25 2015 - 2:00AM
UK Regulatory
TIDMFOGL
RNS Number : 1659A
Falkland Oil and Gas Limited
25 September 2015
25 September 2015
Falkland Oil and Gas Limited
("FOGL" or the "Company")
Operations Update
Falkland Oil and Gas Limited ("FOGL"), the exploration company
focused on its extensive licence areas to the North, South and East
of the Falkland Islands, is providing an operational update on the
Humpback exploration well and a revised drilling programme.
Humpback well
The resolution of the equipment issues took longer than
expected. Drilling has recommenced and FOGL now anticipates that
the results of the well will be available in early October
2015.
Further well on Isobel/Elaine
An agreement has now been reached with Premier Oil and
Rockhopper Exploration to drill a further well on the Isobel/Elaine
complex. This well will replace the Jayne East well in the current
drilling campaign.
Under an amendment to the farm-out agreement FOGL will receive
US$10 million from Premier Oil and Rockhopper Exploration in
compensation for not drilling the Jayne East well. FOGL will be
fully carried through its 40% equity share of the well costs, as
per the original farm-out agreement. There is an ongoing insurance
claim with respect to the 14/20-1 Isobel Deep well and FOGL will be
party to this claim.
The re-drill well will target the Isobel Deep reservoir which
was oil bearing in 14/20-1, but could not be logged or sampled for
mechanical reasons. This new well will be drilled a suitable
distance (approximately 4km) from the original well bore and is
also expected to encounter additional reservoir targets in the
Elaine South and Isobel Shallow fans. It is currently anticipated
that this well will be drilled after the completion of
Humpback.
Swapping Jayne East for a further well on Isobel/Elaine is
subject to the final approval of the Falkland Islands
Government.
For further information:
Falkland Oil and
Gas Limited
Tim Bushell, Chief
Executive +44 (0) 20 7563 1260
RBC Capital Markets
(Nominated Advisor
and Joint Broker)
Matthew Coakes
/ Daniel Conti +44 (0) 20 7653 4000
Numis Securities
Limited (Joint
Broker)
John Prior / Ben
Stoop / Paul Gillam +44 (0) 20 7260 1000
FTI Consulting
Ed Westropp / George
Parker +44 (0) 20 3727 1000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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