How to buy shares in falklands oil and gas

How to buy shares in falklands oil and gas

Author: killa Date: 11.06.2017

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To see our content at its best we recommend upgrading if you wish to continue using IE or using another browser such as Firefox, Safari or Google Chrome. By John Ficenec , Questor Editor. A NEW oil discovery off the Falkland Islands has reignited interest in the region and investors can take advantage through London-listed companies that stand to benefit, although the risks remain high.

Falkland Oil and Gas [LON: PMO] and Rockhopper [LON: RKH] , own 36pc and 24pc respectively. Analysts from BMO Capital Markets estimate the new find could contain about 50m barrels of oil and be worth as much as 10p per share to Falkland Oil and Gas.

Drilling in the isolated and deep seas off the coast of the Falkland Islands is expensive. This new discovery at the Zebedee prospect confirms an expansion of the existing Sea Lion area.

It is also encouraging as it was the first well to be drilled out of a total schedule of six wells due in the next eight months.

The best may still be to come from oil discoveries in the Falklands. While the Zebedee well had one of the highest chances of success, it was also one of the smaller opportunities. When the exploratory rig being used moves to the South Basin around July this year it will drill at the Humpback prospect, which is estimated to hold reserves more than three times the size of Zebedee.

Analysts from broker Peel Hunt estimate the potential hydrocarbon reserves from the full drilling programme could be worth 43p per share to Falkland Oil and Gas when adjusted for drilling costs and if multiple discoveries are made.

The discovery of oil off the Falkland Islands is nothing new. Rockhopper first struck oil back in at the Sea Lion area km north of the islands and at a depth of about m.

The company has since partnered with Premier and the first oil production is expected in The Falkland Islands have not been a happy hunting ground for oil companies in recent years.

The initial enthusiasm about the hydrocarbon potential in the region has been somewhat tempered after a series of failures. Falkland Oil and Gas had disappointments at two major prospects in called Loligo and Scotia. At about 31p yesterday, shares in Falkland Oil and Gas are down more than 80pc from early when they traded at p.

Falkland Island focused Rockhopper has seen its shares more than halve in value from p in early to close at 64p yesterday. Shares in Falkland Island Holdings [LON: FKL] should benefit as it owns and operates property and shops on the South Atlantic islands.

Make no mistake, backing oil exploration off the Falkland Islands remains about as high risk as investing can get. The Fortune Global has been released — the annual ranking of the largest companies in the world by revenues. Here is a list of the 20 biggest corporate money-makers. The Big Short, the film adaptation of Michael Lewis' book of the same name about the causes of the financial crisis, opens in UK cinemas this weekend. How will the story stack up against the greatest films about business?

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how to buy shares in falklands oil and gas

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Accessibility links Skip to article Skip to navigation. Saturday 17 June How to invest in Falkland Islands oil A busy drilling schedule planned for has got investors interested in the Falkland oil story once again, says Questor.

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