MercoPress. South Atlantic News Agency

Falklands Oil & Gas ready to begin drilling in 2009

Falkland Oil and Gas Ltd., which operates in the southern and eastern regions of the Falkland Islands, said it expects to begin exploratory drilling in 2009. FOGL secured last October a farm in deal with mining giant BHP Billiton.

In a statement released Wednesday, ahead of its annual general meeting, Chairman Richard Liddell said: "FOGL is poised to enter the exploration drilling phase with a material licence equity interest in what may well be a significant new petroleum region in the South Atlantic". "The farm-in deal with BHP Billiton includes a commitment to drill a minimum of two exploration wells. BHP Billiton has extensive deepwater drilling expertise and the deal added credibility to the exploration assets and was a crucial step in moving towards a drilling campaign next year", added Liddell. He added that preparation work for the drilling programme is in progress with BHP Billiton currently reviewing a number of options to secure a suitable rig and focusing on the selection of the best prospects for drilling. "An environmental impact assessment has been initiated, together with other planning activities that will be required before drilling can commence. Planning for site surveys is also underway and these are expected to be carried out in the second half of 2008". The FOGL chairman described 2007 as a year of significant progress underlining that the Falklands "is probably one of the most exciting high impact exploration projects currently being undertaken anywhere in the world". In conclusion "we hope to commence exploration drilling in 2009, the next year promises to be a very exciting one for FOGL. The rewards for success could be substantial, given the large resource volumes of the prospects being targeted".