25th Aug 2015 08:07
LONDON (Alliance News) - Falkland Oil and Gas Ltd Tuesday said it is not expecting to receive the results of the Humpback exploration well until September as it debates which well to drill next over its acreage offshore the Falkland Islands.
The oil and gas company, which does not currently generate any revenue, reported a USD2.0 million pretax loss in the first half of 2015, widening from a USD1.3 million loss a year earlier after administrative costs rose and finance income fell.
The company made the Zebedee oil and gas discovery in April and the Isobel Deep discovery in May as part of its joint venture with fellow AIM-listed Rockhopper Exploration PLC and FTSE 250-listed Premier Oil PLC offshore the Falkand Islands.
Falkland Oil said the results from the Humpback exploration well on the South Falklands basin are now expected in September. The well was drilled in the middle of June and should have been completed around August 20.
Once that well is completed, the drilling rig will move back to the North Falkland basin where the previous two discoveries have been made.
"Consideration is currently being given to further drilling at Isobel Deep and this may replace the planned Jayne East well. Any further drilling in the South Falkland basin, as part of the current programme, will be dependent on the Humpback results," Falkland OIl said in a statement.
"Drilling on the Humpback prospect in the South Falkland basin is currently on-going, and we look forward to receiving and sharing the results of this well following completion of the drilling operations," said Chairman John Martin. "With two successes under our belt already and two more wells to complete, the Board looks to the future with confidence".
Falkland shares were up 3.9% to 21.56 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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