Last week the rumour mill sent shares in Falkland Oil & Gas (FOGL) down by around a quarter on fears that drilling at the Loligo exploration well had drawn a blank. In the event, limited testing carried out at the site confirmed gas within six separate reservoirs, although it wasn’t possible to assess whether or not Loligo contains any condensate.
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The news prompted a partial recovery in FOGL’s share price which bounced back 7 per cent post the announcement. The share price of regional stablemate, Borders & Southern, was subject to similar volatility as a result of speculation over its Darwin well earlier in the year.
