MercoPress. South Atlantic News Agency

?Satisfactory results' for FIH

DAVID HUDD, Chairman of Falkland Islands Holdings parent company of the Falkland Islands Company Ltd, has said the company's operations in the Islands, “have continued to provide satisfactory results,” at the Annual General Meeting held last week.

Outlining the company's activities, Mr Hudd said, "fishing support services made a stronger start to the year following improved catches of illex squid in April and May, whilst insurance broking and property rentals have continued to make progress.

"A programme of refurbishment has been undertaken at the Upland Goose Hotel to enhance its customer appeal in readiness for the Austral summer," he said.

The company's retailing outlets have also performed "satisfactorily during the winter period," Mr Hudd said, adding that, although the group's DIY business has suffered from a slow down in building activity in the Islands, and has also been faced by stronger local competition, these shortfalls have been, "offset by encouraging growth in sales at the West Store supermarket which continues to expand its product range." Due to this, at the end of August, overall retail sales were marginally ahead of 2005.

The exploration activities of Falkland Oil and Gas (FOGL), and Falkland Gold and Minerals (FGML), in which the group has a 16.3% and 14.4% shareholding respectively, have continued to make good progress, Mr Hudd said.

"FOGL has completed its second 2D seismic programme and has now recorded 22,450km of seismic, mapping over 100 prospects and leads.

"A programme of controlled source electro-magnetic surveys and infill 2D seismic is now planned to grade and reduce the risk profile of the prospect inventory, in preparation for the selection of drilling locations," Mr Hudd said.

He added that discussions with potential third party participants and exploration partners are being progressed: "FOGL's objective is to commence drilling in 2008 and a number of potential rig options are being evaluated."

FGML is now well into its second year of exploration on the Islands, and its work programme, which involves ground magnetic, sampling and trenching and drilling, has continued through the winter and is likely to continue well into 2007, Mr Hudd explained, adding that the programme will be funded from FGML's existing cash resources.

Finally, Mr Hudd told shareholders that the board, "is confident that the level of underlying profitability will be maintained in the current year." Penguin News