Premier re-drills Isobel well, partners Rockhopper and Falkland confirm

Premier Oil has begun re-drilling the Isobel well in the North Falkland Basin, just south of the contentious Sea Lion field off the Argentinean coast.

FTSE 250-listed Premier is operator of the property, while AIM-listed partners Falkland Oil & Gas and and Rockhopper Exploration have 40% and 24% working interests, respectively.

Spudded by Premier Oil on Saturday, the 14/20-2 well, known as Isobel-2 after the operational issues dogged the first Isobel drill, is located on licence PL004a and is an exploration well on the potential multiple-reservoir Isobel/Elaine fan complex.

The well, which lies approximately 4 km away from the 14/20-1 Isobel Deep oil discovery and will be a re-drill of the Isobel Deep formation at that reservoir level, will also intercept four other fans within the complex comprising Irene, Doreen Elaine South and Isobel.

The first Isobel well penetrated the first 24m of the Isobel Deep reservoir but failed to reach Total Depth owing to operational issues in May of this year.

A further release will be made once drilling operations are completed with results anticipated in January 2016, FOGL and Rockhopper said.

FOGL chief executive Tim Bushell said Isobel-2 was the final well in the company's 2015 exploration drilling programme.

"Finding oil in the original Isobel Deep well was very encouraging and the Isobel 2 well location will further evaluate this discovery. This well location also allows us to explore four other fans and hence, provides an opportunity to assess the significant oil resource that may exist within the Isobel/Elaine complex," he said.

Rockhopper chief Sam Moody added that the well was a chance to significantly increase the volume of proven oil in the basin and gave an opportunity to fan bodies in the Isobel area that have never previously been drilled.

Analysts at Peel Hunt pointed out that the main reservoir objectives were the sands that comprise the Isobel Deep prospect, which was importantly shown to be oil-bearing in the recent 14/20-1 oil discovery.

They added that FOGL was fully carried for all costs associated with this well as a result of a prior farm-out arrangement with Premier and Rockhopper.