MercoPress. South Atlantic News Agency

Falklands’ oil company delays report on deep water exploratory drilling

Apparently there have been some technical problems with the Leiv Eiriksson rig equipment

UK based oil firm Borders & Southern pushed back the time frame for initial results from an exploration campaign offshore the Falkland Islands after a deep water well experienced technical issues.

The company said that the well on its Darwin prospect, which it expected to complete around this time, will need to be drilled for four to five more weeks after unspecified problems with the equipment from the Leiv Eiriksson rig.

“Operations are currently on-going and the drilling of the well has gone according to design. However, progress was stalled due to some technical issues associated with rig equipment. These rig issues have now been addressed and the well is again progressing in accordance with the design”, said the release.

The Falklands could be transformed into a new oil producing province following a substantial oil discovery made by another UK based firm, Rockhopper Exploration, two years ago off the north coast of the Islands.

Borders & Southern is leading the charge to find oil off the south coast of the Islands, where analysts say the oil resources could be larger.

“These rig issues have now been addressed and the well is again progressing in accordance with the design,” said Borders & Southern in the statement.

Drilling began on the Darwin prospect at the end of January and is the first in a series of exploration wells that will test potentially large reservoir targets in the deeper water to the south of the Falkland Islands.

The Darwin prospect is located some 140 kilometres off the coast of the Falkland Islands. And it is believed to contain around 760 million barrels of oil. After Darwin the Stebbing exploration well will follow. This is testing a larger target, which is estimated at 1.3 billion barrels of oil.

Subsequently the Leiv Eiriksson rig will move on to drill two more nearby well’s for Falkland Oil and Gas Ltd.