Falkland Oil & Gas Ltd. (FOGL), the explorer focused on the namesake South Atlantic islands, surged in London on speculation that drilling at its Scotia well will lead to a discovery.
The shares rose as much as 21 percent, the most since Sept. 12, and traded up 19 percent as of 12:21 p.m. in London.
Falkland Oil and its partners Noble Energy Inc. (NBL:US) and Edison SpA are targeting about 1 billion barrels of oil at the Scotia well. The company made the second gas discovery this year at its Loligo well after Borders & Southern Petroleum Plc (BOR) said in July that it found gas, including some liquids, south of the islands Margaret Thatcher went to war to keep British in 1982.
“They’re close to the target depth on Scotia,” said Laura Loppacher, an analyst at Jefferies International Ltd. in London. “What these kinds of stocks do best is speculation, and we may get results shortly.”
Rockhopper Exploration Plc (RKH) found a potentially commercial oil discovery north of the archipelago two years ago.
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