Falkland's Humpback project finds oil and gas but remains behind schedule

Exploring group Falkland Oil and Gas said the Humpback exploration well has found oil and gas shows, while wireline logging indicate there are hydrocarbon bearing sandstones within the main target area.

The group said it had decided to drill deeper at the well, located offshore the Falkland Islands, reaching a depth of 4,718m, where it recorded oil and gas shows whilst drilling through the main target horizon.

Along with Noble Energy, its partner in the project, the London-listed company said it will drill even deeper to source new targets.

However, Falkland warned the drilling has been "slower than anticipated", leading to a sharp increase in operational costs, as the well remains behind schedule.

"Once the well has reached total depth a further set of wireline logs will be run," the group said in a statement on Friday.

"Subject to operational constraints, this will include a formation test tool which may be able to establish a pressure gradient within the sands and also recover a sample of formation fluid to surface for definitive analysis."

Falkland added it expects to reach total depth by the end of October, when it will proceed to make a further announcement.

Falkland shares were down 5.00% to 22.80p at 0858 BST on Friday.