Falkland Oil & Gas (FOGL) has finally started drilling the Loligo well in the Falkland Islands' underexplored southern basin using a semi-submersible drilling rig. FOGL expects initial results from the well within 60 days. The company has also further de-risked the business with a second farm-in deal and the shares remain attractive.
IC TIP:
Buy
at
85p
The farm-in deal is with US-based Noble Energy, which will pay between $180m (£116) and $230m to help cover the costs of drilling a second well, Scotia, immediately following Loligo – as well as other exploration wells, should the first two prove successful.