FOGL Falkland O&G

TIDMFOGL

RNS Number : 7891D

Falkland Oil and Gas Limited

29 October 2015

29 October 2015

Falkland Oil and Gas Limited ("FOGL")

53/02-01 Humpback exploration well results

Falkland Oil and Gas Limited (AIM:FOGL), the exploration company focused on its extensive licence areas to the North, South and East of the Falkland Islands, announces the results from the 53/02-01 Humpback exploration well and also, notes the announcement from the Operator, Noble Energy made at 20:30 on 28 October 2015.

The Humpback well was drilled to a total depth of 5,136 meters (measured depth). The well encountered non-commercial quantities of oil and gas within a number of sandstone intervals, including the main APX-200 target. All of the pre-drill targets were penetrated close to prognosis in the well. An additional 25 meters of sandstone was encountered below the APX-200 bringing the total in the well to 65 meters. The deeper sandstones, exhibit only moderate porosity (10% to 15%) and low hydrocarbon saturations.

For a number of operational reasons, it was not possible to obtain fluid samples from any of the hydrocarbon bearing zones in the well.

FOGL will now evaluate these results in more detail and assess the impact on the prospectivity of the Diomedea fan complex and the rest of the southern licences. The results do however demonstrate a working hydrocarbon system and Humpback was only one of a number of geological plays within the Fitzroy sub-basin. Importantly the results will allow calibration of the 3D seismic data and this may facilitate the mapping of higher quality sands elsewhere within the large area covered by 3D seismic.

Once operations have been completed on Humpback, the Eirik Raude rig will return to the North Falklands Basin to drill a second well on the Elaine/Isobel fan complex. The Elaine/Isobel fan complex, based on the operator's estimates, has multiple reservoir targets and gross mean un-risked resources of 400 million barrels of oil. A further announcement will be made on the commencement of this well.

Tim Bushell, CEO of FOGL, commented:

"While the Humpback well has provided mixed results, it should be noted that this is the first well in the South Falklands Basin to encounter oil and also demonstrate a working hydrocarbon system in the Fitzroy sub-basin. The reservoir quality in the various targets penetrated by the well was however poorer than pre-drill expectations, and further work will now be required to fully integrate the well results and assess the implications for the overall oil and gas potential of our southern licences"

"We look forward to notifying shareholders upon commencement of drilling operations at the Elaine/Isobel well in the North Falkland's basin."

- Ends -

Below is the statement provided by the Operator (Noble Energy) released at 20:30 on 28 October 2015:

Falklands Drilling Result Announced

The Company also announced that the Humpback well offshore the Falkland Islands reached total depth and is being plugged and abandoned. Humpback was drilled in the Fitzroy sub-basin of the Southern Area License and encountered non-commercial quantities of crude oil and natural gas. Full well assessment and the integration of drilling results into the Company's geologic models is ongoing to determine remaining exploration potential in the Southern Area License. The geologic play including Humpback was only one of a number of prospect play types in the Southern Area License.

The rig which drilled the Humpback well will be released to another operator before returning to Noble Energy to spud the Rhea prospect in late 2015 or early 2016. Located in the Northern Area License offshore the Falkland Islands and approximately 265 miles from Humpback, Rhea is in a proven petroleum basin near existing oil discoveries. Rhea is a Cretaceous-aged prospect with multiple reservoir targets and total estimated gross mean unrisked resources in excess of 250 million barrels of oil.

For further information:

 
 Falkland Oil and Gas Limited 
  Tim Bushell, Chief Executive      +44 (0) 20 7563 1260 
 RBC Capital Markets (Nominated 
  Advisor and Joint Broker) 
  Matthew Coakes / Daniel Conti     +44 (0) 20 7653 4000 
 Numis Securities Limited (Joint 
  Broker) 
  John Prior / Ben Stoop / Paul 
  Gillam                            +44 (0) 20 7260 1000 
 FTI Consulting 
  Ed Westropp / George Parker       +44 (0) 20 3727 1000 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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October 29, 2015 03:01 ET (07:01 GMT)

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