Falkland Oil and Gas still hopeful of another oil discovery despite delays

Explorer Falkland Oil and Gas’s hopes of making a third significant oil discovery this year remain alive, despite it revealing delays in its search.

The company is exploring the deep water Humpback well in the South Falklands basin, having made two discoveries in the first half of the year.

John Martin, who joined the company as non-executive chairman in June, said: “With two successes under our belt already and two more wells to complete, the board looks to the future with confidence.”

Any new discovery in waters around the Falklands is likely to infuriate Argentina which claims sovereignty of the islands.

In June, an Argentine judge ordered the seizure of assets belonging to five companies drilling for oil in the area, including Falkland Oil and Gas.

The company revealed that the Humpback exploration had run into delays, but said that partner Noble Energy would pick up the cost of the five-week delay.

Humpback is by far the largest prospect in Falkland’s programme.

The company is also reassessing its plans for the North Falkland basin.

Following the completion of the Humpback well the company is considering further drilling at Isobel Deep, where there was a significant discovery in May.