Falkland Oil & Gas Ltd. (LSE:FOGL) announced that it found gas at its Loligo exploration well, although so far it is unclear whether the gas has any liquid content. The company plans to plug and abandon the well and move on to its Scotia prospect.
As quoted in the press release:
The Loligo well has proven a working hydrocarbon system in the northern part of the East Falkland basin. The results also demonstrate that Loligo is a viable stratigraphic trap. It is clear from the initial well results that the main hydrocarbon phase within the T1 to T5 aged reservoir objectives is gas, but it has not been possible to determine whether this gas has any liquid content.
Tim Bushell, Falkland’s CEO, commented:
The initial results of the Loligo well are encouraging. They have demonstrated that hydrocarbons have migrated into the Tertiary Channel Play. It is also clear that Loligo is a valid trap that contains multiple gas bearing zones, with over 100 metres of hydrocarbon bearing reservoir. We now need to focus on reservoir distribution within Loligo in order to find the sweet spots. A work programme will be undertaken to achieve this, assess the resource potential and commercial viability of this discovery.