Falkland Oil and Gas, the South Falklands basin oil explorer, is down over 29% to 64p after the release of the following RNS just after 1pm,
“FOGL, the oil and gas exploration company focused on its extensive licence areas to the South and East of the Falkland Islands, is providing this update on drilling operations at the Loligo prospect following recent market speculation.
The well has been drilled to a depth of 3,900 metres and is expected to reach total depth (“TD”) within the next 24 hours. Drilling operations are approximately five days behind schedule, principally as a result of having to run an additional string of casing in the top section of the well. No abnormal pressures have been encountered during the drilling of the well and all operations have been conducted without issue.
A further announcement will be made within the next seven days, once the well has reached TD and wireline logging operations have been completed.”
Plenty of speculation why FOGL would bother issuing an RNS with 24 hours to go to target depth but once again it doesn’t look good given the drop – Mr Market is sending a signal. Particularly the fact that there is no mention of hydrocarbon shows up to the target depth in the RNS, but perhaps the board are just being ultra cautious?
With Chariot Oil and Gas down 67% to 33p on its Nimrod well disappointment, FOGL looks to be heading the same way if the current market sentiment is any indicator… For investors burnt by the recent Range/Red Emperor fiasco with the Shabeel 1 well in Puntland which also issued an update RNS a couple of days before a duster, investors have lots of reasons to be sceptical and cautious.
5 day, 15 min chart
Not good for AIM investors at the moment!
Contrarian Investor UK