Exactly thirty three years after Argentina invaded the Falkland Islands, the region is in the news again, but this time only for an oil discovery.
Although the political dispute over the islands continues, UK explorers are continuing their projects, and three of them have announced an oil discovery at the Zebedee well in the PL004b licence area. Premier Oil, Falkland Oil & Gas and Rockhopper said they had found 81 feet of net-oil bearing reservoir and 55 feet of gas-bearing reservoir, a better than expected outcome. This is the first discovery of a nine-month drilling campaign.
Tim Bushell, chief executive of Falklands Oil & Gas, said:
This well further confirms the extension of the Sea Lion discovery and associated reservoirs into PL004b.The Falklands exploration programme has not all been plain sailing, with Premier scaling back its involvement in the Sea Lion project as falling oil prices put pressure on the company to cut costs.
But the market is uncertain about this latest discovery, with the companies’ shares slipping back from earlier gains. Premier shares are now up just 2.4p at 136p while Rockhopper has edged up 0.25p at 64p after hitting 71.5p and Falkland Oil & Gas is down 3.5p at 32p.
Premier owns 36% of Zebedee, Falklands Oil & Gas 40% and Rockhopper 24%.
