Falkland Oil And Gas News

Oil explorers drilling in the waters north of the Falkland Islands have suspended work on the second well of their 2015 current six-well drilling campaign after a technical problem. Operator Premier Oil has suspended operations on the 4/20-1 (Isobel Deep) well, following a problem detected on the drilling rig blowout preventer, BOP, according to partner Falkland Oil and Gas Ltd. Ocean Rig semisubmersible Eirik Raude is performing the drilling program. The company says that the rig, completed in 2002, is equipped for drilling operations in water depths from 500 to 2,500 meters. FOGL said that the problem was detected after the 13⅜-in. casing was set, performed at a water depth of 1,274m, located on license PL004a. The well was spud on April 8, after success in the first well Zebedee.

Britain said on Thursday it had summoned the Argentine ambassador to explain the latest war of words over the disputed Falkland Islands which included a threat to prosecute British energy firms operating in the area. Last week, Premier Oil Plc and Falkland Oil and Gas Ltd said they had made an oil and gas discovery at a well off the south Atlantic islands, the first in a nine-month drilling campaign. Argentina's President Cristina Fernandez called the announcement "almost provocative", and Argentine officials warned they were planning legal action against oil firms operating near the Falklands, which lie 300 miles off the Argentine coast and 8,000 miles from Britain.

DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk and petroleum cargoes and off-shore contract drilling oil services, announced today that Ocean Rig UDW Inc., its majority owned subsidiary, has secured further backlog, as Borders & Southern plc have declared two optional wells under the existing drilling contract for the harsh environment drilling rig Leiv Eiriksson. The two optional wells have been assigned to Falkland Oil and Gas (FOGL) and provide an additional contract duration of approximately 90 days.

BHP Billiton announced that it has acquired an interest in 14 exploration and production licenses offshore the Falkland Islands in the South Atlantic. The Company signed contracts with Falkland Oil and Gas Limited (FOGL) for rights to explore and, if successful, eventually produce oil and gas from the East Falkland Basin located off the southern and eastern coast of the Falkland Islands. BHP Billiton holds a 40 per cent interest in the acreage and is the designated operator. Falkland Oil and Gas Limited hold the remaining 60 percent interest. The production licenses cover approximately 18 million acres and are located in water depths ranging from approximately 656 to 6,570 feet (approximately 200 to 2,000 meters).