24th Apr 2015 11:15
LONDON (Alliance News) - The companies involved in the Isobel well in the Falkland Islands Friday said a problem has been detected with the blowout preventer which has led to the well being "temporarily" suspended so it can be inspected and repaired.
FTSE 250-listed Premier Oil PLC operates the well with a 36% stake, with Falkland Oil and Gas Ltd holding a 40% stake and Rockhopper Exploration holding the balance.
The casing on the well was successfully set at a depth of 1,273.9 metres, but a problem was detected with the blowout preventer, a large valve that seals, controls and monitors the well, leading to the well being temporarily suspended to allow inspections and repairs to be carried out, said the companies.
The repairs are set to take between 10 to 14 days and in the meantime the rig has been moved to drill the top-hole sections and set the conductors on the nearby Chatham and/or Jayne East locations. The rig will return to drilling the Isobel Deep well once the blowout preventer repairs have been completed.
Falkland Oil said the changes have "no financial impact" on the company as it is fully carried through the Isobel and Jayne East wells by Premier and Rockhopper.
Earlier in April, Argentinian President Cristina Fernandez made a threat to take action against UK oil companies if they started drilling in the Falkland Islands, claiming it would be illegal activity in Argentine waters. The threat came on the same day that Premier, Falkland and Rockhopper began drilling the Isobel well.
Premier Oil shares were down 2.6% to 169.30 pence per share Friday afternoon, whilst Falkland Oil fell 7.8% to 26.75p and Rockhopper dropped 3.4% to 62.30p.
By Joshua Warner; [email protected]; @JoshAlliance
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