Falkland Oil Declines Most in Two Years on Loligo Well Delay
Stock Chart for Falkland Oil & Gas Ltd (FOGL)
Falkland Oil slumped 26 percent to 67.25 pence for the biggest decline since July 2010 after saying drilling is about five days behind schedule because of work to reinforce the well.
The company has had to run an “additional string of casing in the top section,” it said today in a statement. “No abnormal pressures have been encountered during the drilling of the well and all operations have been conducted without issue.”
The Loligo well has been drilled to 3,900 meters (12,800 feet) and will reach targeted depth within 24 hours, the London- based company said in the statement.
Oil explorers are targeting 8.3 billion barrels in waters around the islands off Argentina this year, three times the U.K.’s reserves. Falkland Oil has secured a partnership with Noble Energy Inc. (NBL) and Edison International (EIX) SpA to share the costs and risks of drilling off the archipelago that Margaret Thatcher went to war to keep British in 1982.
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