Falkland Islands: Director of Mineral Resources Gives December 2010 Report

At a meeting of the Mineral Resources Committee the Director of Mineral Resources gave her report.

1). Progress with Offshore Drilling Programme: Since the last report was prepared for the meeting held on 14 December, The Ocean Guardian(photo) has completed drilling well 25/10-1 (known as Dawn/Jacinta) for Desire Petroleum which is situated in licence area PL006. The well is only the second to be drilled in the southern part of the North Falkland Basin, the first being well 26/06-1 (Ernest), drilled by Rockhopper Exploration last year. The data and samples taken from the well will be analysed over the coming months in order to understand the geology and the future potential of the area.

On completion of Desire’s well, the rig was taken on contract by Rockhopper Exploration and well 14/10-3 (Sea Lion North) was spudded on 13 January. This is an exploration well due to it being located outside the Discovery Area that has been declared by Rockhopper. It will be followed by an appraisal well that will be drilled in the Discovery Area. Neither of these two wells will be tested while being drilled but cores will be taken from these and subsequent wells for analysis. On completion of Rockhopper’s first appraisal well, the rig will revert to Desire Petroleum in order to drill further well on a location yet to be decided. Rockhopper will then continue to drill a series of additional appraisal wells in order to assess the size of the Sea Lion discovery. This is likely to take until late in the year to complete.

Rockhopper Exploration has appointed Mr Neil Booth, an oil industry specialist, to be based in Stanley during offshore drilling activities.

2). 3D Seismic Surveys: The survey vessels Polarcus Nadia and the Polarcus Asima are carrying out 3D seismic surveys for Argos Resources, Desire Petroleum and Rockhopper Exploration in the North Falkland Basin. The vessels have made several port calls for technical reasons and crew changes. There are a number of support vessels accompanying the survey that will be seen in Stanley harbour periodically. Data from these surveys will greatly increase the geological understanding of the basin for future drilling programmes.

Both vessels have Marine Mammal Observers and Passive Acoustic Monitoring Operators on board during surveying. Environmental data collected is being provided to Falklands Conservation.

3). Falklands Oil & Gas Ltd: Site Surveys

FOGL has announced that they will be undertaking site surveys over a number of prospects in their acreage in the South Falkland Basin once a vessel is mobilised to the area. Site surveys are a requirement prior to drilling if 3D seismic data has not been acquired over the prospects. The surveys include identifying any potential seabed hazards or shallow gas present and the information that is collected will be incorporated into an environmental impact statement (EIS) that will need approval before the company can drill in the area.

3). Oil Company Visitors: Representatives from Rockhopper Exploration are visiting the Islands this week. The team comprises Sam Moody, Chief Executive; Fiona McAulay, Petroleum Geologist and Scott McKelvie, Environmental Consultant. They will brief the Mineral Resources Committee while here about their drilling programme.

A further visit by other Rockhopper Exploration employees is expected in February.

Borders & Southern Petroleum senior management personnel will visit Stanley during the week beginning 31 January. Howard Obee, Chief Executive; Bruce Farrar, Business Development Manager and Jon Harris, Drilling Manager will brief FIG on their future drilling programme which will be conducted using Ocean Rig’s deep-water rig, Eirik Raude, starting in late 2011. They will be accompanied by drilling and rig company representatives who will be familiarising themselves with the facilities available to support drilling activities.

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Source: BGS, January 31, 2011;