OIL and gas exploration company Falkland Oil and Gas (FOGL) yesterday announced it had found gas at its Loligo exploration well in the Falkland Islands.
The junior stock market-listed firm said yesterday it could not be sure if the gas was commercially viable, as it was unable to determine whether the gas had any liquid content.
The oil explorer will not drill further wells at Loligo until the discovered gas has been analysed, although chief executive Tim Bushell said the results from Loligo were “encouraging”.
Loligo will be plugged and abandoned, and FOGL will concentrate on drilling at its Scotia prospect.
FOGL holds a 75 per cent interest in the well, working alongside Edison International Spa, which holds the remaining 25 per cent interest.
It was oil, rather than gas, that many expected to be found at the site in the south Atlantic, a prediction that sent FOGL’s shares rocketing last week.
FOGL intends to undertake further drilling in the area in 2014.
Shares in the oil and gas explorer closed up 5.34 per cent yesterday to close at 74p.