Falkland Oil & Gas Share Prices Halve on the Back of Poor Gas Well Returns
Exploration group Falkland Oil & Gas – one of four UK companies drilling for oil and gas around the islands – saw its shares halve in value after a disappointing update on its operations in the South Atlantic.
Its AIM-listed shares fell to an all-time low of 32p after the company said that gas reservoirs it drilled were of poor quality and that the results indicated that there was only low permeability.
Sam Wahab, at Seymour Pierce, said that the much anticipated well results come as a disappointment for investors in the company, following its finding of gas at the Loligo prospect in September.
Despite the disappointing report Falklands chief executive, Tim Bushell, said: "During 2012 we have drilled two encouraging wells, both of which found hyrdro carbons and were completed safely and within budget. They reinforce our confidence in the potential of the basin."
So from the current low now, is it safe to assume that the share prices will bounce back next year?
Thank you for registering with Oilprice.com
You have successfully joined the forum. You can now create topics and converse with other members.