LONDON – Falklands Oil & Gas Ltd (FOGL) expects the semisubmersible Leiv Eiriksson to arrive in the Falkland Islands late in 2011. The company will use the rig’s third and fourth slots under a combined program with Borders and Southern Petroleum, and expects to start drilling during Q1 2012.
Last month, the Islands’ Executive Council approved the withdrawal of BHP Billiton from the northern license area, transferring operatorship to FOGL. They also granted a six-month extension of Phase 1 of this area through June 15, 2012. Final approval is expected shortly from the British Foreign and Commonwealth Office.
FOGL must relinquish 20% of the northern license area at the end of this year, under the first-phase terms. The second phase, which expires in December 2015, includes a commitment to drill one exploration well.
FOGL adds that it has entered Phase 2 of the Southern License area, and no further relinquishment is required here.
The company has completed its latest offshore site survey program, undertaking five site surveys over the Inflexible, Vinson, Scotia, Hero and Loligo drilling prospects.
Loligo’s was the fourth site surveyed on this prospect, following three in 2009. This range of sites will allow FOGL to determine an optimum location for its initial exploration well, and any subsequent appraisal wells.
The company also plans to acquire further 2D seismic over the Scotia and Hero prospects, using the data to optimize a well location on either of these prospects.
FOGL is in talks with various companies about potential farm-ins, but no agreement appears likely until later this year.