MercoPress. South Atlantic News Agency

Falkland Oil & Gas concludes sea bed survey at four sites

MV Fugro Meridian

Falkland Oil and Gas ((FOGL), the oil and gas exploration company with extensive licensed areas to the South and East of the Falkland Islands, said Monday that it has completed the survey program at four areas with the MV Fugro Meridian. The four areas were jointly selected by the operatior BHP Billiton and FOGL.

The vessel, which is operated by Fugro Surveys, acquired high resolution 2D seismic data in order to assess drilling hazards in the top few hundred meters of sediment below the sea bed. Bathymetric and sea bed imaging surveys were conducted to generate a detailed picture of the sea floor. In addition numerous gravity cores and grab samples of the sea bed were recovered to calibrate the sea bed imaging and provide accurate data on sea bed composition and local fauna for inclusion in the environmental impact assessment. The surveys were completed last week, the company said. The British Antarctic Survey vessel, the James Clark Ross, was contracted to deploy wave and current meters. Data from these instruments will be used in the environmental assessment and in the design specifications for rig mooring and riser design said the company in a release. The deployment was completed in December but the monitoring is ongoing. A geotechnical boring programme was also undertaken, by the MV Fugro Saltire, to establish the composition and physical properties of the top 200 metres of sediment below the seabed. Information derived from this survey will be used to assist in the detailed conductor and casing design of the wells. FOGL said it will now utilise the data acquired in the surveys to undertake detailed well designs which will then form part of the regulatory approval. The site survey data will also be utilised in the environmental impact assessment that will be submitted to the Falkland Islands' Government in the coming months. "I am pleased that the site survey has been successfully completed on time and in budget and this completes the final phase of offshore activities prior to drilling", said Tim Bushell Chief Executive of FOGL. FOGL entered into a farm-out agreement with a subsidiary of BHP Billiton, the world's largest diversified resources company, over FOGL's 2002 and 2004 licences to the South and East of the Falkland Islands in 2007. Under the 2007 agreement a minimum of two exploration wells will be drilled in the next 3 years and the farm out agreement applies to FOGL entire exploration acreage in the Falklands. BHP Billiton acquired a 40% interest, with an option to increase its interest up to 65%, and will take over the operator-ship of the licences.