Falklands’ Argos acquires 3-D seismic data prepares to drill late 2011, early 2012

Tuesday, April 26th 2011 - 01:34 UTC

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Argos Resources Limited, the Falkland Islands based hydrocarbons exploration company, has reported that the company has completed the acquisition of 3-D seismic data over the entire area of its PL001 licence in the North Falkland Basin. Read full article

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Marcos Alejandro
Lure of Falklands still draws the drillers

Published: April 22 2011 23:09 | Last updated: April 22 2011 23:09

This week the outlook for the five British explorers operating offshore in the Falkland Islands took a turn for the worse when Desire Petroleum, the most prolific driller of the group, announced that its Ninky well was dry and would be abandoned.

Desire said it had £22m in cash left – enough to cover rig and vessel demobilisation costs and its seismic programme but “insufficient to drill further wells”.

The news raised fresh questions about prospects of companies drilling near the Falklands, and sent Desire shares into free fall, down nearly two-thirds to about 15p – a far cry from highs of more than 160p in October.

Analysts played down the likelihood that Desire could raise capital to drill more wells. Canaccord Genuity noted: “A straightforward equity raise would prove difficult [and hugely dilutive], given the group’s disappointing exploration record, and a general waning of interest by equity markets towards the Falklands . . . [It’s] not quite game over for Desire just yet, [but] it’s not far off it.”

Yet the promise of a “get-rich-quick” oil strike on the Falklands rollercoaster continued on Tuesday when Falkland Oil and Gas raised £32m by placing 45.7m new shares at 70p each to fund its own drilling programme early next year.

Desire’s concessions are in the north of the Falkland Basin, but Falkland Oil and Gas is focused on the south and east.

Alternating desolation and euphoria have caused tumult among share prices of British explorers focused on the area, which also include Borders & Southern, Argos Resources and Rockhopper Exploration – whose Sea Lion prospect last year provided the region’s sole viable strike.

When oil majors such as Shell relinquished Falklands exploration licences at about the turn of the millennium, small explorers snapped them up, undeterred by extraction costs and geopolitical risks.

Oil exploration is always a gam
Apr 26th, 2011 - 03:53 am - Link - Report abuse 0
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