Falkland Oil and Gas Limited 14/15b-5 Well Discovery (2553J)
April 02 2015 - 1:00AM
UK Regulatory
TIDMFOGL
RNS Number : 2553J
Falkland Oil and Gas Limited
02 April 2015
2(nd) April 2015
Falkland Oil and Gas Limited ("FOGL")
Oil and gas discovery at well 14/15b-5 (Zebedee), Falkland
Islands
Falkland Oil and Gas Limited (AIM:FOGL), the oil and gas
exploration company focused on its extensive licence areas to the
North, South and East of the Falklands islands, is pleased to
announce the successful results of the 14/15b-5 'Zebedee'
exploration well.
The well, which is located on licence PL004b (FOGL 40%
interest), discovered 27.5 metres of net oil-bearing reservoir and
17.5 metres of net gas-bearing reservoir. The well penetrated
multiple targets in the Cretaceous F2 and F3 formations with a
total net pay of 45 metres. The pay is primarily located within two
F2 sands:
-- The Hector sand, which contains 17.5 metres of net gas pay.
-- The Zebedee sand, which contains 25.0 metres of net oil pay.
No oil-water contact was observed in the Zebedee reservoir.
The reservoir in both the Hector and Zebedee intervals is of
good quality and the results are better than FOGL's pre-drill
expectations.
Oil was also encountered in a 5 metre sand (2.5 metres of net
oil pay), lying below Hector which may be a southern extension of
the Beverley sand encountered in the 14/15b-4 well. In addition, a
3 metre sand lying below the Zebedee sand, containing good oil
shows, is thought to be the southerly extension of the Sea Lion
Main sand.
Pressure measurements taken in the Zebedee interval plot on the
same gradient as those observed in the oil leg of the Sea Lion
field. It is likely therefore, that Zebedee reservoir is in
pressure communication with, and has the same oil-water contact as
Sea Lion.
Good oil shows were recorded in a number of the deeper F3
targets, but at this location the sands are not well developed.
FOGL is encouraged by the positive results of the well. The
Zebedee reservoir is better developed than anticipated in FOGL's
reservoir models and this will positively impact resource
estimates. The Hector reservoir, which has not been drilled
previously, has been proven to have very good properties. In
addition to the gas discovered in Hector in the well, the flank of
the Hector reservoir may have potential for additional oil
resources.
FOGL will now evaluate these results and their positive impact
on potential hydrocarbon resources. We will also initiate an
independent third party assessment, the results of which will be
published in due course.
The well will now be plugged and abandoned as a successful
exploration well. The Eirik Raude rig will then drill the first
exploration test on the Elaine/Isobel fan complex in the southern
part of the North Falkland Basin with the Isobel Deep well. The
results of this well are expected in late April 2015 and a further
announcement will be made upon spudding on the well.
Tim Bushell, CEO, commented:
"This is an excellent result and one that adds significantly to
the proven hydrocarbon resources of licence PL004b and the greater
Sea Lion area. This well further confirms the extension of the Sea
Lion discovery and associated reservoirs into PL004b, which have
now been demonstrated to contain a significant proportion of the
total field resources.
"FOGL looks forward to continuing to work with its partners to
progress development of the substantial oil and gas resources
within PL004b."
- Ends -
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
DRLSSDEEFFISEEL
Falkland O&G (LSE:FOGL)
Historical Stock Chart
From Apr 2024 to May 2024
Falkland O&G (LSE:FOGL)
Historical Stock Chart
From May 2023 to May 2024