MercoPress. South Atlantic News Agency

Active year for Minerals Department.

Falkland Islands Governor Howard Pearce in his annual address to the Legislative Council said that the Department of Mineral Resources had an active year with interest in exploration for hydrocarbons in frontier areas increasing in the second half of 2003 because of unrest in the Middle East and consistently high oil prices.

"Enquiries from oil companies have been significant, particularly following attendance by the Minerals Department at an oil convention in Barcelona in September. Contact with companies was consolidated in April when FIG and British Geological Survey consultants attended the annual AAPG Convention in Dallas, Texas", said Governor Pearce.

Desire Petroleum which has extensive acreage in the North Falkland Basin funded this year an 800 km2 3D seismic survey this year. Results will be available next September and should assist in pinpointing drilling targets.

Spectrum Energy, a British geophysical survey company which conducted surveys in the northern offshore areas in the 1990's, has also been committed to encouraging continued exploration.

"They have, at their expense, reprocessed data using new techniques and have been actively marketing these data to oil companies", indicated Governor Pearce.

The Falklands Hydrocarbon Consortium, led by Global Petroleum and with partners Hardman Resources and the Falkland Islands Company completed reprocessing and interpretation of South Falkland Basin data, and has worked closely with the Department of Mineral Resources in preparing a further work programme.

It is anticipated that the group will undertake a 2D seismic survey over their licensed acreage within the next year.

Governor Pearce underlined that "prospect for further investment in exploration for hydrocarbons later this year looks positive as interest in the area increases".

Regarding onshore exploration for minerals in the Islands, there has been significant progress with a new company, Falkland Minerals Limited, registered in Stanley.

The company comprises previous licences holders and new investors, RAB Capital, a London based company. An aeromagnetic survey was flown over the Islands during April and May and the results will assist the operator, Global Petroleum, in designing a shallow drilling programme to start next summer.

Meanwhile, draft mining legislation is to be considered by Councillors later this year in parallel with environmental legislation, concluded the Governor's minerals report.