Oil & Gas Corporate News
Falkland Oil and Gas Limited (BUY 250p) (FOGL LN, 62p, ? 3.38%) provided an operational update: Leiv Eiriksson rig is expected to arrive in the Falkland Islands in late January 2012; FOGL will have access to the rig for the third and fourth slots in the combined Borders & Southern and FOGL programme and expects to commence drilling in the second quarter of 2012 on its Loligo prospect in FOGL's Northern licence area; Following a detailed review of its budgets and assumptions, FOGL has identified various drilling options and, based on geological, commercial and financial factors at the relevant time, the Company will decide which options to progress; The Company remains funded to drill a well on Loligo and a second well on another Tertiary Channel target such as Nimrod or Vinson; Based on the latest projections, a second well is fully funded only in the event that a shallower well is drilled on Loligo; The Company's current technical preference for the second well would be the Scotia prospect in the Mid Cretaceous Fan play; However, the feasibility of this option is dependent upon the Company securing additional funding and the priority of the Scotia prospect may change if information obtained from the Loligo well provides further justification for the drilling of a well on either Nimrod, Vinson, or a second well on Loligo; The Company may also consider drilling the Inflexible prospect if the results of the well drilled by Borders & Southern Petroleum plc on their Darwin prospect are encouraging; Well planning is also now at an advanced stage, the work is being carried out by FOGL, in conjunction with AGR Peak Well Management, and is focusing on drilling locations on Loligo, Scotia, Nimrod, Vinson and Inflexible; The Company continues its discussions with a number of oil companies who have expressed an interest in participating in FOGL's exploration drilling programme; and the Company also reported that an assignment agreement for the Northern licence area has been signed by FOGL and BHP Billiton, whilst finalising this agreement it was agreed that BHP Billiton would not to have the option to farm back into the Loligo development area
Max Petroleum (LON:MXP) PLC (BUY 50p) (MXP LN, 12.5p, ? 0.0%) provided a production update of its activities in the Blocks A&E Licence area in the Republic of Kazakhstan. The Company…
