Falkland Oil & Gas poised to drill

Falkland Oil & Gas (FOGL), the junior exploration partner of BHP Billiton in the south and east Falkland basins, is poised to drill its first well, Toroa. The FOGL/BHP joint venture has secured the third drilling slot of the Ocean Guardian rig currently drilling Desire Petroleum's first well in the north Falkland basin. Although Toroa is targeting prospective resources of up to 1.7bn barrels of oil, FOGL's bosses believe the potential of the deeper water prospects (beyond the scope of Ocean Guardian) is even greater. BHP continues to look for a semi-submersible rig or large drillship to drill these deeper water prospects, perhaps by the end of the year. Having raised over £57m through share placings, FOGL held net cash of $80.8m (£53.3m) as at 31 December 2009.