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| Well failure knocks Falkland Oil | |
| (40 minutes later) | |
| A number of oil exploration companies are hoping for Falklands success | A number of oil exploration companies are hoping for Falklands success |
| Shares in Falkland Oil & Gas (FOGL) have fallen sharply after the company said it would give up on one of its oil wells, not far off the coast of the South Falklands. | Shares in Falkland Oil & Gas (FOGL) have fallen sharply after the company said it would give up on one of its oil wells, not far off the coast of the South Falklands. |
| It started drilling the Toroa well at the end of May. | It started drilling the Toroa well at the end of May. |
| Despite its optimism at the time, it now says it there are no hydrocarbons there and it will plug the well. | Despite its optimism at the time, it now says it there are no hydrocarbons there and it will plug the well. |
| Shares in FOGL fell by more than 60% before recovering slightly to trade 45% lower at 110p. | Shares in FOGL fell by more than 60% before recovering slightly to trade 45% lower at 110p. |
| But, it said it still hoped there was oil in the area, which is about 90 miles south of the Falklands Island capital, Stanley. | But, it said it still hoped there was oil in the area, which is about 90 miles south of the Falklands Island capital, Stanley. |
| It believes the Toroa prospect, in which it has a 49% interest, has around 1.7 billion barrels of recoverable oil and is now carrying out further assessments. | It believes the Toroa prospect, in which it has a 49% interest, has around 1.7 billion barrels of recoverable oil and is now carrying out further assessments. |
| The company pointed out that development of the field was in its early stages. | The company pointed out that development of the field was in its early stages. |
| "Whilst the results of the Toroa well are disappointing, it has to be remembered that this is the first well in a previously undrilled frontier basin," the firm's chief executive Tim Bushell said. | "Whilst the results of the Toroa well are disappointing, it has to be remembered that this is the first well in a previously undrilled frontier basin," the firm's chief executive Tim Bushell said. |
| "We believe that these results have helped to reduce some of the key risks of the plays in the deepwater areas of our licences." | "We believe that these results have helped to reduce some of the key risks of the plays in the deepwater areas of our licences." |
| Shares in Falkland Islands Holdings, which has an 8% stake in Falklands Oil & Gas also fell, by 17%. | Shares in Falkland Islands Holdings, which has an 8% stake in Falklands Oil & Gas also fell, by 17%. |
| The Falkland Islands have become a hotbed of drilling activity for smaller UK-listed explorers. | The Falkland Islands have become a hotbed of drilling activity for smaller UK-listed explorers. |
| Last month, Rockhopper Exploration said it was looking to raise £48.5m after striking larger-than-expected reserves of oil in the region. | Last month, Rockhopper Exploration said it was looking to raise £48.5m after striking larger-than-expected reserves of oil in the region. |