11th Jan 2016 08:25
LONDON (Alliance News) - Three London-listed companies working together offshore the Falkland Islands Monday said they have made a new oil discovery whilst confirming a previous discovery after re-drilling one of their wells.
Premier Oil PLC, Rockhopper Exploration PLC and Falkland Oil & Gas PLC all released separate statements confirming the discoveries from the Isobel deep well located on licence PL004A.
Premier Oil is the operator of the licence and re-drilled the Isobel deep well offshore the Islands to a total depth of 3,014 metres, confirming a previously made oil discovery and making a new oil discovery in additional sandstones.
Oil was encountered in "a number of sandstone reservoirs" between 2,564 and 2,861 metres, and the partners said no oil-water contacts were encountered. Further evaluation will now be required to calibrate the well with the existing 3D seismic in order to determine future plans and the extent of the discovered resource, the partners said.
Rockhopper Exploration said a total of five oil bearing fan packages were found in the F3 system, with a net oil pay of 27.0 metres recorded within the Isobel Deep, Isobel and Emily reservoirs.
Operations at the well have now been suspended and the well has been plugged and abandoned as planned. The rig used to drill the well is now being moved to drill the Chatham well.
"The results of this well confirm the success of the Isobel Deep 14/20-1 well announced in May last year. We have encountered a substantial oil bearing interval, which confirms the potential of this part of the North Falkland basin as a standalone discovery," said Robin Allan, Premier Oil's exploration director.
"This successful re-drill of the Isobel Deep oil sand along with the additional discovery of new oil-bearing sandstones, is extremely encouraging for the prospectivity of the area with a proven petroleum system and a number of prospects established," he added.
Premier Oil holds a 3% stake in the licence whilst Rockhopper holds a 24% stake with Falkland Oil holds the remaining balance. Falkland Oil and Rockhopper are currently trying to finalise a merger, led by Rockhopper, which if completed would give the new enlarged entity a 64% stake in the licence.
That merger is expected to become effective from next Monday.
By Joshua Warner; [email protected]; @JoshAlliance
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