MercoPress. South Atlantic News Agency

Two Falklands’ exploration companies to begin 3D seismic surveying in January

Argos chairman Ian Thomson

Two Falkland Islands hydrocarbons exploration companies have signed contracts for marine seismic acquisition services with Polarcus Limited. The contracts were announced Thursday and should be operational by early January 2011.

Polarcus will carry out a “substantial” 3D seismic survey covering all of the Argos’ acreage in licence PL001, as well as adjacent areas.

The seismic vessel MV Polarcus Asima will be available by early January next year and it is estimated the survey will take 50 days.

Rockhopper Exploration (LON:RKH), which owns the successful Sea Lion field adjacent to the Argos acreage in the North Falkland Basin, has signed an identical contract with Polarcus, allowing Argos and Rockhopper to share the vessel and costs.

A separate contract to process the acquired data will be put out to tender shortly.

However, Monarch Geophysical Services has been retained to provide specialist acquisition and processing supervision throughout the 3D seismic project.

Argos chairman Ian Thomson said: “At the time of our listing in July we stated that it was our aim to secure a seismic vessel to commence shooting in the austral summer of late 2010/early 2011, allowing the possibility to commence exploration drilling as early as the fourth quarter of 2011.

“Signing this contract secures the front end of this timetable. The MV Polarcus Asima is a state-of-the-art vessel which should ensure an efficient seismic acquisition programme.”

“We are also delighted to have been able to sign this contract in a co-operative arrangement with Rockhopper. This allows both companies to share mobilisation and demobilisation costs and to capture the technical and cost efficiencies resulting from a larger program”.

“As a result of these savings, I am pleased to note that Argos should be able to acquire more 3D coverage, over the whole of PL001 and adjacent areas, than originally envisaged at the time of listing.”

“The primary objective of this 3D seismic acquisition programme is to define the aerial extent of the Sea Lion fan, following our oil discovery earlier this year, as well to examine other areas and play types within PL032, PL033 and adjacent areas, which will help us to identify future prospects” said Sam Moody, Chief Executive of Rockhopper Exploration.