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Falklands oil dream becoming a reality
Stanley, Falkland Islands (UPI) Oct 22, 2009 The Falkland Islands' dream of becoming a major oil producer may be becoming a reality with new investment funds going into exploration amid expert analysis the British overseas territory may hold more oil than the North Sea. Desire Petroleum, one of the oil and gas exploration companies active in the area, announced this week it has conditionally placed 60 million new ordinary shares of 16 cents each at an issue price of $1.16 per share, raising $68 million before expenses. The company said it already had about $40 million available for investment in Falklands oil exploration and development and planned to raise more than $100 million through share offerings. These shares were placed predominantly with new institutional investors and will be supplemented with an open offer that is expected to raise an additional $38 million. In September Desire agreed with Diamond Offshore Drilling (UK) Ltd to start drilling the ocean bed in the North Falkland Basin. The drilling operation is scheduled to involve four wells and cost about $20 million. With additional funds at its disposal Desire plans to increase the number of wells it will drill to look for substantial quantities of oil. Further drilling by Desire partners Arcadia Petroleum Limited and Rockhopper Exploration has already been announced. The companies have said they want to drill as many wells as feasible in potentially viable areas to explore and exploit the area's full potential. Drilling for oil in the ocean bed north of the Falkland Islands began about 10 years ago, and early studies showed five of the first six wells held certain promise but not on a commercial scale. Further exploration was abandoned as the crude oil price plummeted below $10 a barrel at that time and the exploration costs proved too prohibitive. Major players, including Shell, soon pulled out of the exploration program. The Falklands government says it plans to monitor prospective and oil industry development closely to make sure the islands' transformation does not damage their environment and major tourist attractions, including penguins. Scientists have established the rocky basins around much of the Falklands hold reserves that are at least equal to the central North Sea oil fields. Desire estimates the areas under its prospecting may hold 5 billion to 6 billion barrels of oil. Although the British government has refrained from comment on a potential transformation of the Falklands into an oil-rich economy, it is watchful of reactions from Argentina, which still claims sovereignty over the territory. Argentina and Britain fought a war over the islands in 1982. Share This Article With Planet Earth
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Nigeria seeks to buy off oil rebelsAbuja, Nigeria (UPI) Oct 22, 2009 Nigeria's government plans to allocate 10 percent of its oil revenue for the troubled Niger Delta region, which produces most of the country's crude, in a new bid to stamp out a tribal insurgency that has cut oil output by one-third. But critics say that the money, far from appeasing the impoverished Ijaw tribes of the swampy region and buying off the rebels, will only vanish into ... read more |
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