U.K.-listed Falkland Oil and Gas Limited (FOGL.LN) said Friday that Premier Oil, the operator of the Zebedee prospect in the Falklands islands, had begun drilling the first exploration well of the current drilling campaign at the prospect. The well is located on license PL004b, in which Falkland oil and gas has a 40% working interest. Falkland Oil and Gas said there is a 10% to 50% chance that the well will be successful. The well is targeting estimated gross resources of 281 million barrels of oil equivalent, of which 112 million barrels of oil equivalent would be net to Falkland. “The Zebedee prospect, if successful, will significantly increase the hydrocarbon resources of the Sea Lion field complex within our license area,” said Falkland CEO Tim Bushell. Falkland has a market capitalization of GBP169 million or $258 million. Write to Alex MacDonald at alex.macdonald@wsj.com