Wednesday, February 22nd 2012 - 02:42 UTC

Falklands’ government oil revenue of 180bn, only the ‘best case’ scenario

The Falkland Islands Director of Minerals Stephen Luxton said that estimates published last week in the UK, of revenue of 180 billion dollars for the Falklands Government from oil production are only a “best case” scenario since in spite of great potential, the only true test is the drill bit.

Stephen Luxton: the only true test is the drill bit

Estimates in royalties and taxes were published in a report from UK market and investment analyst Edison Investment Research, adding that a successful 2012 drill campaign will be a “game changer” not just for the companies involved but the Falklands as a whole.

“I think the important part was the several ‘could be’. It’s very much potential since the only significant discovery there is at the moment is Rockhopper’s Sea Lion and the associated ones that are in that area. There are a lot of prospects in the rest of the area, some very big ones, many of which haven’t been drilled and that’s the crux of it really: the only true test is the drill bit”, said Stephen Luxton.

He added that at the moment a lot of those numbers are based on prospects being mapped on seismic surveys and “we won’t know the truth until such time as those are drilled, the next six months will be a very interesting time”.

Luxton went on to say that it all comes back to the word “potential”.

“If all the potential prospects come in as positive then the potential upside for the Falklands is very substantial but it’s unlikely that they will all come in and it remains to be seen which ones may do and what that means for the Falklands”.

Nevertheless Luxton feels that even the Sea Lion success case, if that proceeds through development the potential revenue to the Falklands is quite substantial. “Clearly there are some bigger prospects out there which may bring bigger benefits, but we’ll have to wait and see, I think”. (FIRS).-

 

Published in: Energy & Oil, Investments, Falkland Islands.
Tags: Falkland Islands, oil reserves, Sea Lion Main Complex, Stephen Luxton.

18 comments Feed

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1 JORGE1982 (#) Feb 22nd, 2012 - 03:55 am Report abuse
I wonder what will happen when all this oil circus finishes and they tell the truth about it.
I mean, when they recognize that the oil reserves weren't what they shouted.
2 Marcos Alejandro (#) Feb 22nd, 2012 - 04:26 am Report abuse
Stephen is living proof that there isn't any food shortage over there.
Occupation: Dust extraction
3 Malvinero1 (#) Feb 22nd, 2012 - 04:57 am
Comment removed by the editor.
4 dreyfoss (#) Feb 22nd, 2012 - 06:13 am
Comment removed by the editor.
5 Mrlayback (#) Feb 22nd, 2012 - 09:08 am Report abuse
These websites should really look at age groups before letting people make comments, quite clearly Marcos, Malvinero1, dreyfoss, they are under age and should ask permission from their parents.
6 Be serious (#) Feb 22nd, 2012 - 09:44 am Report abuse
1
I guess if there isn't as much oil as first thought and what there is, is safely extracted and sold on World markets, Argentina will lose interest.

Hopefully the environment will be protected and the Islands will remain in their current pristine condition. Shame you Hispanics couldn't have looked after your own environment a little better.
7 J.A. Roberts (#) Feb 22nd, 2012 - 10:14 am Report abuse
Hilarious. The best “argument” the Malvinistas can come up with is how “large” Stephen Luxton is... If that's the best they can do, then the Falkland Islanders shouldn't be worried..
8 Papamoa (#) Feb 22nd, 2012 - 12:05 pm Report abuse
I think the argentine posters are VERY envious of the Falklands (Potentially Vast) Wealth and Future prospects!!!!!!!!!!!!!

Long Live the Falklands.
9 stick up your junta (#) Feb 22nd, 2012 - 05:11 pm Report abuse
They might all get bigger with all that lovely oil money coming,no work to do and rich food,I know, they can build a olympic sized pool with some of the dosh
10 GreekYoghurt (#) Feb 22nd, 2012 - 07:16 pm Report abuse
To be fair to most Argentines they're stick thin because all they have to eat with the current inflation is gruel. The hilarious thing is although Stephen Luxton might be on the larger side, he's nothing compared to currently groomed presidential heir apparent Maximo Kerchner, who let's face it... is one massive greaseball.
11 JORGE1982 (#) Feb 22nd, 2012 - 08:39 pm Report abuse
Hi Roberts! (tanto tiempo) You always talking nonsense on the net (not just here) :-)
12 briton (#) Feb 22nd, 2012 - 09:23 pm Report abuse
Does it really matter, if there is oil or not, if it is worth 50pence or billions,
Its not argentine, and that is a fact .
Leave em alone to live in peace .
.
13 Academik (#) Feb 23rd, 2012 - 08:34 pm Report abuse
I only feel sorry for the poor arguments of the inhabitants of the Falklands for JOINING only wealth that belongs to Argentina. Hopefully the law will prevail not only the strongest will prevail but also history, geographical reasons and international law only reason to give the Argentine claim. And the ground made ​​the bogus self-determination. (this right is only when you're a native, is not the case invaded the islands in 1833 and the English settlers brought)
14 briton (#) Feb 23rd, 2012 - 11:03 pm Report abuse
(this right is only when you're a native, is not the case invaded the islands in 1833
and the russians invaded,
15 Wireless (#) Feb 24th, 2012 - 01:11 am Report abuse
They have to mention 1833, but woe betide anyone that points out 1982, but then who cares, the drill bit keeps turning and they can do nothing but cry about it.
16 tigre (#) Feb 24th, 2012 - 03:07 am Report abuse
Do not forget, though living in the malvinas are South American, first, not happy about the oil that is for the queen and a few employer and the rest is to support britain not to get in crisis, in short they will not see a coin ... his part is the contamination of water, air and earth ... hopefully there is little oil, and assemble other business more sustainable and less polluting, bye, South American
17 Mrlayback (#) Feb 24th, 2012 - 06:31 am Report abuse
13 Academik

The only thing that will prevail is the islanders right to self-determination, Wealth only happened to the islanders through 9 generation´s of good honest hard work, Oil was only discovered recently and its not known If it will give more wealth to the islanders. Argentina government will only destroy that community spirit, and destroy what the islanders created. We live in reality not the past and geographicaly speaking its 200 miles from Argentina so its not exaclly close to Argentina either, just because its the closest land dont make it right. and by the way you never had the island in the first place. give
it up ! and leave them in peace .............. PEACE !!!!!
18 briton (#) Feb 24th, 2012 - 05:25 pm Report abuse
tigre (# [growl ]

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