News

February 17, 2010

FOGL Secures Rig Slot For Maiden Well In H1 2010

Armed with the proceeds of a £50 million placing, Falkland Oil & Gas Limited is preparing for a landmark well spud in the virgin waters of the East Falkland Basin. The AIM-quoted company this week confirmed it has agreed terms with fellow Falklands explorer Desire Petroleum to hire the Ocean Guardian rig for the drilling of its maiden well last this spring, confounding critics who said the company would be unlikely to see drillbit action until Q4 2010.

This is certainly good news for investors, who had been growing impatient about the hunt for a rig to drill up the company’s huge acreage position in the waters to the south and east of the Falkland Islands.  In this, FOGL was not alone as fellow explorers, such as Desire Petroleum and Rockhopper Exploration, were also stymied in their exploration ambitions by a tight rig market and a remote drill site, factors that made their drilling plans prohibitively expensive.  All that began to...