Falklands Oil Explorers Report First Discovery of 2015 Campaign

Falkland Islands

(Reuters) – Premier Oil Plc and Falkland Oil and Gas Ltd said they made an oil and gas discovery at a well in the Falkland Islands, the first in a nine-month drilling campaign.

The companies said the discovery of 81 feet of net-oil bearing reservoir and 55 feet of net gas-bearing reservoir at the Zebedee well was better than expected.

Analysts for brokerage Stifel, however, said the uncertainty around the development of the Sea Lion project meant the discovery was unlikely to change the picture in the North Falkland basin.

“A full appreciation of the significance of today’s result may have to wait until the conclusion of the drilling campaign later this year.”

In November, Premier Oil scaled back its Sea Lion oilfield project after struggling to find a partner and weak oil prices put pressure on the company to cut costs.

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