Tuesday, November 27th 2012 - 12:35 UTC

Poor quality hydrocarbons in south/east Falklands; new round of 3D program begins

Falkland Oil and Gas Ltd. (FOGL) focused on exploration in areas to the South and East of the Falkland Islands reported on Tuesday that the well drilled at its Scotia prospect discovered poor quality hydrocarbons.

PGS M/V Ramform Sterling expected in the Falklands

The 31/12-01 well will be now plugged and abandoned and FOGL next step is to commence a 3D program which will begin once PGS M/V Ramform Sterling arrives in the Falklands.

According to the company release the well was drilled to a depth of 5.555 meters and strong gas shows were identified with interpretation of wireline log data indicating that the target interval 4.719m to 4.769m comprises 50m of hydrocarbon bearing fine grained sandstones and clay-stones.

“The wireline logs indicate that, at this location within Scotia, the sandstones form fairly poor quality reservoir, although some zones have up to 20% porosity. Other thin hydrocarbon bearing sandstones were encountered beneath the main target in the interval 4900m to 5164m. Subsequent evaluation of the main interval using a wireline formation testing tool did not flow hydrocarbons, indicating that the reservoir has low permeability”.

The release adds that rock cuttings and sidewall core samples were obtained from several potential source rock intervals and these will be sent to the laboratory for detailed analysis.

“The results should provide vital information on the quality and maturity of these source rocks and also provide a better understanding of the distribution of oil and gas within this part of the South and East Falklands’ basin”.

Since Scotia covers an area of approximately 350 square kilometers further technical work is required to assess just how representative the current exploration result is, and whether or not better quality reservoir may exist elsewhere within Scotia.

”The well data will be invaluable for calibrating the forthcoming 3D seismic program. The 3D seismic will be used to map sand fairways in the play and, when combined with detailed analysis from the Scotia well, should allow identification of better quality reservoir and differentiation between oil and gas prospects” points out the FOGL release.

FOGL CEO Tim Bushell said that the results of the Scotia well provide further endorsement of the hydrocarbon potential of the South and East Falkland Basin and “have proven the presence of hydrocarbons within the mid Cretaceous Fan Play“.

”We now plan to fully evaluate the results of the Loligo and Scotia wells. The forward program will focus strongly on three key themes: evaluation of source rock potential and hydrocarbon migration; identification of good quality reservoir within the Tertiary and Cretaceous prospects and plays and the potential commercialization of gas and associated liquids in the South and East Falklands’ basin.“

”During 2012 we have drilled two encouraging wells, both of which found hydrocarbons and were completed safely and within budget. They reinforce our confidence in the potential of the basin”, concluded CEO Bushell.

FOGL is the operator of the well, holding a 40% interest, whilst Noble Energy Inc. holds a 35% interest and Edison International Spa, holds the remaining 25% interest. Under the terms of the farm-out agreements, FOGL is paying 15% of the costs of this well.


28 comments Feed

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1 Britworker (#) Nov 27th, 2012 - 01:34 pm Report abuse
That ship is really cool.
2 Furry-Fat-Feck (#) Nov 27th, 2012 - 02:17 pm Report abuse
Oooh. Apparently her last know port visit was Punta Arenas. Info received just after midday. Very interesting.
3 Islander1 (#) Nov 27th, 2012 - 02:50 pm Report abuse
And before Think and Marcos get all excited - this means that FOGL did not hit the right tap first time around - but the existence is confirmed - so maybe better luck next time around in another spot based on studying the results and samples and the next lot of Seismic - an oil or gas field is not found overnight!
How many dry holes were hit north of the Islands before Sealion!
We know you folks will do your best to condemn and criticise from ignorance of reality anyway. Remember - he who laughs LAST - laughs longest! And the jury is out for a year or two yet on that one folks.
But I guess any diversion at the moment helps while Argentina rushes about in fear of the forthcoming referendum and possible potential International implications if the word Independence appears as a possible furute option!
4 Conqueror (#) Nov 27th, 2012 - 03:37 pm Report abuse
@3 If it is “poor quality” hydrocarbons, might it not be a good idea to sell it to argieland? Beggars can't be choosers. Pump it up. Stick it in a tanker or two and sail them just outside argie waters. With a HUGE sign offering at US$250 per barrel!
5 LightThink (#) Nov 27th, 2012 - 03:41 pm Report abuse
I am a geologist !

There are no any productive/commercially oil /gas reserves at around these islands.

already FOGL reports ratify me.
6 slattzzz (#) Nov 27th, 2012 - 04:19 pm Report abuse
thats strange light thing thought on a diferent post your were a merchant banker ;) strange how they suddenly all become experts on the field that is being discussed, a bit like Guzz being in the merchant Navy as an engineer running out of Montevideo, then suddenly he's a student in Norway / Denmark, thats not you again is it Guzz you little minx
7 agent999 (#) Nov 27th, 2012 - 04:22 pm Report abuse
@6 slattzzz

It all depends on who are today's puppet masters!
8 Idlehands (#) Nov 27th, 2012 - 04:32 pm Report abuse
Do geologists have x-ray vision to detect oil deposits from hundreds if not thousands of miles away? Makes you wonder why all these other geologists bother with all this techie stuff like drilling to have a look.
9 agent999 (#) Nov 27th, 2012 - 04:43 pm Report abuse
@8 Idlehands

Don't forget LightThink has also got X-ray vision.
10 Frank (#) Nov 27th, 2012 - 06:34 pm Report abuse
@9 its such a pity that someone stuck some kryptonite in his RG undies.

BTW where is El Thicko.?. he normally jumps on news like this.
11 LightThink (#) Nov 27th, 2012 - 07:35 pm Report abuse
My this page comment is not new ...


comment : 3
12 Room237 (#) Nov 27th, 2012 - 07:59 pm Report abuse
The headline is a little wrong, good quality hydrocarbons just not much of it and in a tight reservoir. This is the way of hydrocarbon exploration, you must match the seismic data to an actual well bore to know what the reflective horizons actually are that deep down before you find the sweet spot. 350km square is a good sized prospect with a now proven source rock, trap and migration paths. It can only get better for them.
13 stick up your junta (#) Nov 27th, 2012 - 08:04 pm Report abuse
Guzz being in the merchant Navy as an engineer running out of Montevideo, then suddenly he's a student in Norway / Denmark, thats not you again is it Guzz you little minx

How could i be so stupid and not thought of it before , of course Guzz and light think are one of the same Mr Ben

14 LightThink (#) Nov 27th, 2012 - 08:34 pm Report abuse
[ 12

just smile .....

We have our developed very sophisticated technologies that we can sense the mines and their places/reserves .....techtonic zones movements.......etc...easily....
15 Islander1 (#) Nov 27th, 2012 - 08:36 pm Report abuse
Light Think - as an expert then please enlighten us as to what was the stuff that RKH brought to the surface in several drill in the seaLion filed - and what is it that has caused another Oil Co to come in with a multibillion $ investment programme t=now entering detailled planning with construction work satrting in 12 months time and on site filed operations with at least 2 rigs in 2 years time?
Also what was the top quality stuff that Border&Southern brought to the surface a few months ago south of the Islands? Why are they now spending some millions on futher seismic work and looking to drill further in 2014-2015 if a rig available?
16 Room237 (#) Nov 27th, 2012 - 08:48 pm Report abuse
14 Um no you don't unless your referring to 3D seismic and even that does not give you absolute answers, but you should know this if you are a Geologist involved in the hydrocarbon industries. PS what particular field of expertise are you in LightThink ?
17 LightThink (#) Nov 27th, 2012 - 08:50 pm Report abuse
[ 15

If you keep your eyes on them which are small stalking- horse companies

maybe strategic bluff against Argentina
maybe money laundering.........who knows !

Oil Business is very perilous and elusive....
18 Room237 (#) Nov 27th, 2012 - 09:03 pm Report abuse
Would agree on your last line “Oil Business is very perilous and elusive....”
If anything an understatement.
19 LightThink (#) Nov 27th, 2012 - 09:08 pm Report abuse
[ 16

Seismic research is -- ex-post --technic in geology.
Drilling is ultimate technic to operate.


[ 18

no understatement them....
merely their business nature.
20 Room237 (#) Nov 27th, 2012 - 09:18 pm Report abuse
Again sorry LightThink but if Drilling alone is the ultimate technique then why did such a large percentage of well bores turn out to be dusters before the invention of seismic surveying and as improvements have been made to the technology why has that percentage dropped ? Could you name me an example in recent times where an exploration well has been drilled without some form of survey ?
21 LightThink (#) Nov 27th, 2012 - 09:28 pm Report abuse
[ 20

well !

your comment backs up my comment (5) in principle.
the example is from Falkland Islands.
22 Room237 (#) Nov 27th, 2012 - 09:40 pm Report abuse
Nope my company was one of the first companies that surveyed the Falklands, you could say it was us that got the ball rolling, hence why I was so interested in this thread, and our experts say yes it is worth drilling. Probable mostly oil in the North Falklands Basin and gas in the South Falklands and Falklands Plateau.
23 Islander1 (#) Nov 28th, 2012 - 03:08 am Report abuse
Light Think - you show yourself as a typical stereotype Arg:
Ask them a straight question - and they cannot answer.
All they can do is make erroneous comments which they cannot back up - eg what you have done twice above!
24 Marcos Alejandro (#) Nov 28th, 2012 - 04:09 am Report abuse
What? Que paso? Oh just another duster Zzzzzzzzzzzzzz
25 lsolde (#) Nov 28th, 2012 - 11:13 am Report abuse
You hope it is, Marcos.
Jealousy will get you no-where
26 British_Kirchnerist (#) Nov 28th, 2012 - 11:37 pm Report abuse
Oh dear, maybe better to team up with Argentina...
27 Benson (#) Nov 29th, 2012 - 08:49 am Report abuse
No thanks BK, we don't want to send the investors running for the hills.
28 Argie (#) Nov 30th, 2012 - 02:28 pm Report abuse
These are not North Sea wells.
Stop financing impossible dreams.
'Potential' is a word leading to a potential tomb for your real money. If explorers had to use their own dough, they won't drill unless they have 99% possiblities of finding a promisory well.
Better luck next time!

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