Oil and gas explorer Falkland Oil & Gas Ltd. (FOGL.LN) Tuesday said BHP Billiton PLC (BLT.LN) has decided not to participate in the next phase of drilling in its licenses near the Falkland Islands.

BHP Billiton will assign its 51% interest in the licenses in the South Falklands basin to Falkland Oil & Gas, the company said.

Drilling there is scheduled to take place before Dec. 3, 2015.

The company didn't specify why BHP gave up its interest in the license, but Falkland Oil & Gas didn't find any oil at a well on the Toroa prospect during drilling earlier this year.

The company said its analysis of data from Toroa indicates its licenses are still prospective.

Falkland Oil & Gas added it isn't likely to drill in its northern licenses before the end of 2010 because of a lack of available rigs. The Falkland Islands government has agreed to extend its license term by a year to Dec. 15, 2011, however, it said.

-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; jason.douglas@dowjones.com
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