30th Apr 2015 08:09
LONDON (Alliance News) - Falkland Oil and Gas Ltd Thursday said its pretax loss narrowed in 2014 after the company reduced its costs and said its drilling programme with its joint venture partners remains on track.
The oil and gas company exploring in the British islands off the Argentinian coast reported a USD3.2 million loss in 2014, narrower than the USD4.0 million loss in 2013 as the company slashed its administrative expenses to USD4.4 million from USD6.4 million.
The company is currently exploring and developing three areas all offshore the Falkland Islands targeting the North and South/East Falkland basins.
The North basin is being explored with FTSE 250-listed Premier Oil PLC and Rockhopper Exploration PLC. Currently, the Isobel deep well is being drilled after the partners completed the drilling of the Zebedee well, with results due soon.
The Sea Lion project, which lies over the North basin and is a joint venture between Falkland Oil and Premier Oil, is slowly progressing, and Falkland Oil said further appraisal of the area is needed to understand the scope of the second phase of field development.
When the Isobel deep well was drilled in March, Argentinian President Cristina Fernandez made a threat to take legal action against Falkland Oil and its partners, claiming it would be illegal activity in Argentine waters. On Thursday, the company said it has received no written notification or legal documents from the government, saying that the hydrocarbon law in Argentina does not apply in the British owned islands.
"Any attempts to enforce Argentine domestic legislation in relation to the Falkland Islands continental shelf are an unlawful assertion of extra-territorial jurisdiction. As such, Argentina's action is contrary to the UN Convention of the Law of the Sea. It is also unlawful interference with the right of the Falkland Islanders under the UN Charter to self-determination, their right to develop their hydrocarbons resources and the peaceful development of their economy," said the company.
In 2015, Falkland Oil said the Humpback well on the South basin will be drilled once the Isobel deep well has been completed, before moving to the Jayne East prospect on the North basin in August. Results from the Zebedee well are also expected later in 2015.
Falkland Oil shares rose 2.1% to 27.56 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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