Oil Company Decides Not To Drill For Oil, Stock Jumps 7%

From City A.M.:

Premier Oil and Rockhopper Exploration today announced the early termination of a drilling contract in the Falklands.

The companies said their contract for the Eirik Raude rig was terminated with immediate effect yesterday, due to operational issues.

"As a result, Premier will no longer be drilling the Chatham exploration well during the current campaign" it said in a statement to the London Stock Exchange this morning.

"However, we are in discussions with the Falkland Islands government regarding the possibility of drilling this prospect in the future."

But shares in the the FTSE 250-listed Premier Oil still rose as much as 7.56 per cent to 32p this morning....MORE