Falkland Oil and Gas (FOGL) is set for a productive exploration campaign despite recording pre-tax loss of $4million (£2.4million) in 2013 – down $5m from the previous year.
Losses from operations and purchases of a British competitor, Desire Petroleum, and an interest in the Sea Lion project contributed to the drop in profits.
But the company said it was fully funded for its drilling campaign, planned for 2015, thanks to a farm-out of two Desire’s licences to Premier Oil and Rockhopper Exploration.
The firm has now completed three 3D seismic surveys covering a total of 12,000 square kilometre area which it will use to identify locations for its five-well drilling programme.
“2013 was a year of remarkable achievement during which the company significantly diversified its portfolio whilst simultaneously orchestrating farm-out deals to achieve a balance of upside exposure, risk and funding,” said Richard Liddell, chairman of FOGL.
“During the course of 2015 we will have exposure to five high impact wells within a fully funded programme and we are naturally very pleased with the opportunity for value growth which this offers our shareholders, and we are looking forward to a very exciting period ahead.”
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