6th Mar 2015 08:13
LONDON (Alliance News) - Falkland Oil and Gas Ltd Friday said the Zebedee exploration well in the company's namesake country has been spudded by Premier Oil PLC.
Falkland Oil has a 40% interest in the Zebedee well, whilst Premier as operator of the license holds a 36% stake. Rockhopper Exploration PLC holds the remaining 24%.
Falkland Oil said the well will test a total of seven stacked fan bodies with varying geological chances of success ranging between 10% to 50%. However, Rockhopper released its own statement that said the success rates ranges between 9% to 52%.
The well is targeting estimates of around 281 million barrels of oil equivalent, of which 112 million barrels would be net to Falkland, 68 million barrels net to Rockhopper, with the remaining 101 million barrels net to Premier.
Rockhopper said each well on the licence will cost around USD50 million in total, but said due to various carry arrangements, Rockhopper will pay a total of USD25 million for the four wells planned on the license. The cost of the Zebedee well, net to Falkland Oil, is around USD22 million.
"I am very pleased to announce the commencement of the 2015 drilling programme. The Zebedee prospect, if successful, will significantly increase the hydrocarbon resources of the Sea Lion field complex within our licence area," said Tim Bushell, Chief Executive of Falkland Oil.
This exciting exploration campaign exposes shareholders to a range of prospects and risks which in the case of success will add significantly to the value of the already discovered and appraised Sea Lion field," said Samuel Moody, Chief Executive of Rockhopper.
Premier Oil shares were up 0.1% to 154.70 pence per share on Friday morning. Rockhopper shares were down 0.5% to 67.69 pence per share while Falkland Oil shares rose by 1.7% to 32.30 pence.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
PMO.LRockhopperFOGL.L