Global Petroleum Ltd
26 July 2006
Global Petroleum Limited
26 July 2006
Global Petroleum advises that the following announcement was made by Falkland
Oil and Gas Limited (FOGL) on the 25 July 2006. Global Petroleum holds a 14%
interest in FOGL.
John Armstrong
Executive Chairman
Telephone: 61 7 3211 1122
Fax : 61 7 3211 1122
Web: www.global-petroleum.co.uk
Falkland Oil and Gas Limited
('FOGL' or 'the Company')
Falkland Oil and Gas to conduct electromagnetic survey
Falkland Oil and Gas Limited ('FOGL') has signed a Letter of intent with
Offshore Hydrocarbon Mapping plc ('OHM') to undertake a Controlled Source
Electro-Magnetic survey ('CSEM') over the company's licences in the South and
East Falkland Basins.
The use of CSEM technology in this environment is particularly appropriate and
exciting. CSEM is a method which investigates the electromagnetic properties of
rocks and has a recognisable response when oil and gas is present. CSEM is an
extremely cost effective method of high grading an extensive inventory of
exploration prospects and leads. CSEM imaging works best under certain
conditions, including deepwater (>500metres), simple sand & shale geological
sequences, and large traps (prospects), all of which are prevalent within FOGL's
South & East Falkland Basins.
This programme has the potential to indicate which of our numerous prospects may
contain hydrocarbons. Our strategy will be to obtain CSEM data over many of the
larger prospects and based on the results, infill 2D seismic will then be
acquired in order to determine the best sites for exploration wells.
This is the first part of our revised forward exploration programme recently
discussed with the Falkland Island Government. FOGL had already begun
preparatory work which will enable rapid implementation of a CSEM survey,
further demonstrating FOGL's commitment to this exploration acreage.
We expect to commence both the CSEM and 2D seismic surveys before the end of
2006 and be in a position to announce the results early next year.
Tim Bushell, Chief Executive Officer commented:
'We are very excited by this new technology and its application in our licences.
The use of CSEM imaging is an appropriate exploration tool given the large
number of prospects and leads that we have identified. We believe that CSEM can
help to significantly reduce risk, improve the chance of success and allow us to
focus on the best prospects for drilling in 2008'.
Enquiries:
FOGL
Tim Bushell, Chief Executive
Richard Liddell, Chairman 020 7563 1260
College Hill
Nick Elwes / Paddy Blewer 020 7457 2020
Note to Editors
Controlled Source Electro-Magnetic imaging (CSEM) is potentially the most
important new technology in the field of offshore oil & gas exploration since
the advent of 3D seismic some twenty years ago. CSEM is an innovative offshore
geophysical technique, employing electromagnetic remote-sensing technology to
detect the presence and extent of hydrocarbon accumulations below the seabed.
The CSEM survey uses a dipole source that is towed just above the seafloor to
transmit an electromagnetic field into the earth. This field is modified by the
presence of subsurface resistive layers and these changes are detected and
logged by an array of receivers placed on the seabed.
Because hydrocarbon-bearing formations are highly resistive compared with
surrounding formations, a CSEM survey can indicate the presence of oil and gas
in offshore situations. CSEM imaging can significantly reduce the risk of
drilling dry exploration wells creating considerable value for oil & gas
explorers.
The technique was first used offshore Angola in 2000 and has since become a key
deepwater exploration tool for the major oil companies. Very high success rates
have been quoted by these companies, particularly when the results of a CSEM
survey have been integrated with seismic interpretation.
For further information on OHM please see www.offshorehydrocarbonmapping.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange