Advertisement

Falkland Oil & Gas plummets

Falkland Oil and Gas lost almost had its value after drilling at its Scotia well proved unsuccessful.

Falkland Oil and Gas lost almost had its value after drilling at its Scotia well proved unsuccessful.

The stock plunged 45.6% after the firm said it had only discovered a poor quality reservoir at the site and would now abandon it.

Wireline logs indicated that the sandstones formed fairly poor quality reservoir, although some zones had up to 20% porosity, the company reported.

Advertisement - Article continues below

Other thin hydrocarbon bearing sandstones were encountered beneath the main target in the interval 4900m to 5164m.

Subsequent evaluation of the main interval using a wireline formation testing tool did not flow hydrocarbons, indicating that the reservoir had low permeability.

However, the company tried to put a positive spin on the result.

It said drilling carried out at the site should provide vital information on the quality and maturity of source rocks and also provide a better understanding of the distribution of oil and gas within that part of the South and East Falklands basin.

A further announcement on the results of this work will be made in the first quarter of 2013.

Chief Executive Tim Bushell said the results of the Scotia well provided further endorsement of the hydrocarbon potential of the South and East Falkland Basin and had proven the presence of hydrocarbons within the mid Cretaceous Fan Play.

"During 2012 we have drilled two encouraging wells, both of which found hydrocarbons and were completed safely and within budget," he said.

"They reinforce our confidence in the potential of the basin."

Advertisement
Advertisement

Recommended

Visit/investments/investment-strategy/601044/broker-safety-your-questions-answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Visit/economy/uk-economy/601427/covid-bounce-back-loans-and-inflation
UK Economy

What bounce back loans can tell us about how we’ll pay for all this

The government will guarantee emergency "bounce back loans" for small businesses hit by Covid-19. Inevitably, many businesses will default. And there'…
1 Jun 2020
Visit/investments/commodities/601433/commodities-possibly-the-biggest-opportunity-in-todays-markets
Commodities

This looks like the biggest opportunity in today’s markets

With low interest rates and constant money-printing, most assets have become expensive. But one major asset class hasn’t. John Stepek explains why com…
2 Jun 2020
Visit/economy/global-economy/601420/james-ferguson-the-virus-the-lockdown-and-what-comes-next
Global Economy

The MoneyWeek Podcast: James Ferguson on the virus, the lockdown, and what comes next

Merryn talks to MoneyWeek regular James Ferguson of Macrostrategy Partnership about what's happened so far with the virus; whether the lockdown was th…
28 May 2020