LONDON, Sept 17 Oil explorer Falkland Oil and
Gas (FOGL) said it found gas off the coast of the
British-governed Falkland Islands in the South Atlantic, but it
could not yet be sure whether the discovery was commercial or
Finding gas in a remote location like the Falkland Islands,
an archipelago over which Argentina lays claim, is less
straightforward than finding oil as it is more difficult and
costly to build the facilities to extract and transport gas.
FOGL, which is partnered with U.S. firm Noble Energy
and Italian utility Edison on the project, said on
Monday the results were "encouraging" but added that more tests
would need to be done to assess the size of the resource and
commercial viability of the gas.
Shares in FOGL traded down 10 percent to 62 pence at 0708
Companies involved in looking for oil in the Falklands have
ignored legal threats by Argentina, which 30 years ago fought a
war against Britain over the Falklands and has tried to disrupt
Oil was found to the north of the Falklands in 2010 and
plans are afoot to turn the province into an oil producer.
FOGL operates to the south of the islands and will drill one
more well in the area before the rig goes elsewhere. Borders &
Southern, another British explorer, found gas
condensate off the south of the islands earlier this year.