Falkland Islands Holdings PLC
8 July 2002
FALKLAND ISLANDS HOLDINGS PLC
Award of Offshore Exploration Licences
Falkland Islands Holdings is a UK listed company operating in The Falkland
Islands where it is involved in general trading.
Falkland Islands Holdings plc today announces the award to The Falklands
Hydrocarbon Consortium by The Falkland Islands Government of ten offshore
exploration licences in the southern area of The Falkland Islands, covering a
total of 57,700sqkm.
The Falklands Hydrocarbon Consortium comprises three companies; Global Petroleum
Ltd (operator with 50% interest), Hardman Resources Ltd (30% interest) and
Falkland Islands Holdings (20% interest).
This award represents the first grant of oil exploration licences by The
Falkland Islands' Government since 1996 and is the largest and first ever award
within the southern area of The Falkland Islands which lies in the same
geological province as the 1981 Exxon Well which recorded a flow test of 3,000
bopd. Geologically the southern area is proven to be different from The
Northern Falkland basin where Shell, Amerada Hess, Desire and Argos have held
licences. Initial indications show the southern basins which are underexplored
have a much thicker sedimentary section, cretaceous rocks and potentially large
structures in the right environment.
Global Petroleum as operator will undertake an initial seismic study to be
followed by new seismic surveys for an initial three year period. At the end of
this period, all or part of the permit area may be renewed for a further three
year period during which drilling of one or more wells will be required.
David Hudd, Chairman of Falkland Islands Holdings plc commented:
'This award is potentially very material for the company given that it is the
largest ever award of oil exploration licences by The Falkland Islands'
Government in a previously underexplored province with proven hydrocarbon
potential. We look forward to working with the operator who has a track record
in similar areas.'
8 July 2002
Enquiries:
Falkland Islands Holdings Tel: 07771 893 267
David Hudd, Chairman
College Hill Tel: 020 7457 2020
James Henderson
This information is provided by RNS
The company news service from the London Stock Exchange