Oil & Gas

End of chopping drilling run for Falkland Oil and Gas

Ocean Rig’s deepwater drilling rig the Leiv Eiriksson is to head back to the North Sea after completing a drilling campaign in the remote Falklands.

It was on hire to Falkland Oil and Gas (FOG), drilling the successful Loligo well and recently-plugged Scotia well.

FOG’s results have excited and disappointed the market in turn, with shares falling dramatically on the poor results from Scotia after being boosted by the results from Loligo.

Shares were today trading at a 52-week low of 29p before rising slightly to 30p, with the highest price in the past year being £1.03.

FOG chief executive Tim Bushell said: “We look forward to evaluating the results of the two wells drilled in 2012 and incorporating these, together with the output from the forthcoming 3D surveys, into our future drilling plans.”

The Leiv Eiriksson will moved over to Norway where it will be on contract to a consortium of firms coordinated by Rig Management Norway.

The new contract is for 15 wells and is due to start before the end of the year. The consortium also has three contract extension options of six wells each.

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