The Falkland oil drillers have today revealed that an appraisal well on a new discovery, Isobel Deep, has been added to the current schedule.
An original discovery well at Isobel Deep, in May, found oil bearing reservoir though it was at a higher than expected pressure and the oil companies were unable to test the discovery properly.
This new well at Isobel Deep – which will also aim for additional targets (Elaine South, and Isobel Shallow) – replaces the planned Jayne East exploration well.
Falkland Oil & Gas (LON:FOGL) as a result of the new arrangements will receive US$10mln compensation from fellow partners Premier Oil (LON:PMO) and Rockhopper Exploration (LON:RKH).
It will also continue to be carried for its 40% interest of the Isobel Deep well costs.
This new Isobel Deep well will be located about 4 kilometres from the discovery well and it aims to test the oil bearing reservoir which could not be evaluated previously.
It is anticipated that Isobel Deep will be the next well in the programme, following the completion of the Humpback exploration well which is currently being drilled in the deeper waters off the south of the islands.
FOGL, which is partnered with US major Noble in Humpback, also told investors this morning that results from the potentially high impact well are now expected in early October.
Drilling had been delayed already, and it added today that the resolution of equipment issues on the rig had taken longer than expected to complete. Drilling has now resumed, however.
Humpback is by far the largest exploration prospect in the programme, and it is anticipated that a successful result – an oil discovery – could be transformational for FOGL.