FOGL Shares Soar on Scotia Discovery Speculation (Falkland Islands)
Shares of Falkland Oil and Gas (FOGL) today jumped as much as 21 per cent driven by speculation that the company’s exploration efforts at Scotia well, offshore Falkland Islands will lead to an oil discovery.
The company restarted drilling operations at the well two weeks ago, after having to resolve blowout preventer issues. On November 7, 2012, FOGL said it would take 4-6 weeks to complete drilling operations. The Leiv Eiriksson semi-submersible rig is being used for the drilling operations on the well.
“They’re close to the target depth on Scotia. What these kinds of stocks do best is speculation, and we may get results shortly,” an analyst at Jefferies International Ltd. in London told Bloomberg today.
The Scotia well, located 315 km east – northeast of Stanley, Falkland Islands, is designed to test the Scotia prospect within the mid Cretaceous fan play. FOGL is the operator of the well, holding a 40% interest, together with its partner Edison International Spa (25%) and Noble Energy with 35% interest.
Offshore Energy Today Staff, November 21, 2012