MercoPress. South Atlantic News Agency

Penguin News Update.

Headlines:
Ten years of midwinter madness; European funding bid progresses: agreement signed; New oil exploration company for Falklands drilling; More problems forWorld Discoverer; Councillors meet Bielsa; Murder on St Helena.

Ten years of midwinter madness.

For the tenth consecutive year, hundreds of people abandoned all sense and threw themselves into the cold waters of the South Atlantic on Saturday. Find out why - centre pages.

European funding bid progresses: agreement signed.

A MAJOR step towards securing funding for the Falklands from the 09th European Development Fund has been completed with the signing in Brussels of an agreement between the Falkland Islands Government and the European Commission. The agreement concludes a lengthy process of consultation between the European Commission, Falkland Islands Government and the United Kingdom, which began in April 2003 with the first draft of a programming document. External Development Officer Jenny Smith said this Single Programming Document details a work programme that will be supported through the FIG budget by the 3 million Euro (approximately £2 million) that the fund will provide. "The main objective of the programme is to accelerate sustainable economic growth by supporting private sector development in trade. This is to be achieved by specific trade development initiatives in the maritime, tourism and agricultural sectors." Before the Falkland Islands actually receives the funds there is one more step in the process that needs to be completed. Ms Smith explained, "This involves the Commission drafting a Financing Agreement putting in place the timetable for disbursing the funds and the reporting system that the Commission uses to monitor the way the funds are used by the Falkland Islands Government." This level of funding is possible due to the Overseas Countries and Territories Agreement signed in 2001 that sets out the relationship between the European Community and overseas territories of Member States. Ms Smith commented, "With the expansion of the Community this year the Agreement is increasingly important as a mechanism to make sure small Overseas Territories maintain access to European markets and also to development funding." Continued on page 3

New oil exploration company for Falklands drilling,

DEVELOPMENTS in the Falklands offshore future have attracted the attention of the British press. Earlier this week Falkland Islands Holdings (FIH) announced its intention to form a new oil exploration company, Falkland Oil and Gas Ltd (FOGL), to survey areas to the south and east of the islands. The formation is in conjunction with FIH's joint venture partners Global Petroleum Ltd and Hardman Resources Ltd, with financial agreement from RAB Capital. FOGL will own 77.5% of the licences with the remaining 22.5% to be held by Hardman. The shareholdings in FOGL will be RAB 45.4%, FIC 28.9% and Global 25.7%. The Financial Timessays the new company, together with Hardman Resources, will invest £2.5 million, "...to fund further work on initial seismic work that suggests reserves of between 200 million and 2.5 billion barrels of oil off Falklands shores." In an article entitled "Falkland Oil-lands" The Sunreports that news of the exploration sent shares in FIH up 6.5p to 287.5p. Director of Minerals and Agriculture Phyl Rendell yesterday described the formation of the new company as "very encouraging." She added, "The new company structure brings investment to fund further exploration work in the South Falkland Basin which is good for the Islands economy." Mrs Rendell confirmed oil was brought to the surface during exploratory drilling in 1998. She said, "I have a sample in my office."

More problems for World Discoverer

A CRUISE ship which regularly visited the South Atlantic for over thirty years, but has experienced a number of difficulties in recent years, has been repossessed. In a message to clients, the website of Society Expeditions, owners of the World Discoverer, this week stated, "Although we have experienced a steady increase in bookings for our upcoming Antarctica and 2005 voyages, the general problematic situation in the travel industry has led to below budget numbers on this year's summer and fall voyages. "These unusually low numbers have led to financial shortages, and we regret to inform you that our mortgage holders have unexpectedly taken possession of the World Discoverer."Responding to the news, Councillor John Birmingham, holder of the tourism portfolio, commented, "It's unfortunate and will hit some of the smaller islands especially."

Councillors meet Bielsa.

TWO Falklands councillors have had a brief personal exchange with the Argentine Foreign Minister in New York. Councillors Roger Edwards and Mike Summers were approached by Rafael Bielsa after presenting their speeches to the United Nations Decolonisation Committee (C24) last week. Councillor Edwards said Mr Bielsa, "...wished us well and said he would see us next year." Mr Edwards gave Mr Bielsa a little food for thought: "I suggested when they put forward their argument next time, they include the wishes of Islanders and a little about the right to determine their own future. "I said he should raise it in their next cabinet meeting - of course they haven't had a cabinet meeting since Kirchner's government took office. He just gave me one of those looks." More on C24 - page 5.

Murder on St Helena.

TWO men have been charged with the murder of a man whose body was discovered in the moat at Jamestown, St Helena. Jeremy Thomas (17) and Colin Philips (18) have been jointly charged with the murder of Ryan Thomas (19). Police investigations continue. The St Helena Heraldreports that forensic evidence may be sent to the UK for examination or a forensic expert may be brought to the island.