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Falkland Oil Explorers Rise on Speculation Loligo Completed

Oil explorers operating off the Falkland Islands rose in London trading on speculation that Falkland Oil & Gas Ltd. (FOGL) had completed its delayed Loligo well.

Falkland Oil, which is focused on the southern part of the islands, jumped 16 percent, the most since April, while Borders & Southern Petroleum Plc (BOR) gained 5.7 percent. Argos Resources Ltd. (ARG) climbed 4.7 percent.

Falkland Oil is clawing back gains after falling the most in two years on Sept. 10 following the delay at Loligo. The London-based company said at the time the well would reach targeted depth within 24 hours.

“Obviously there are rumors going around,” said Laura Loppacher, an analyst at Jefferies International Ltd. in London. “They should be logging the well results by now.”

Oil explorers are targeting 8.3 billion barrels in waters around the islands in the South Atlantic Ocean this year, three times the U.K.’s reserves. A spokesman for Falkland Oil couldn’t immediately comment on the share price.

Rockhopper Exploration Plc (RKH), which owns licenses in waters north of the islands, slipped 0.7 percent to 179 pence.

Rockhopper was the first to make a commercial find in the region. Borders & Southern in April announced a discovery of gas condensate at its Darwin prospect, close to Falkland Oil’s fields, and said in July it found gas at Stebbing, though not in commercial quantities.

Falkland Oil started drilling at the Loligo prospect on Aug. 3.

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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