An exploration effort is beginning to take shape in a large basin south and southeast of the Falkland Islands in the South Atlantic Ocean.
Three independents originally awarded 10 blocks covering 57,000 sq km in 2002 have restructured the joint venture and plan to acquire 3,500 km or more of 2D seismic data.
Analysis of 4,340 km of existing 1990s-vintage seismic turned up several play types with leads capable of containing 200 million to 2.5 billion bbl of oil in the undrilled South Falklands basin.
The lease block now covers 33,700 sq km in 400-1,850 m of water. A new entity, Falkland Oil & Gas Ltd., will hold 77.5% of the licenses and Hardman Resources NL, Perth, will hold 22.5%.
FOGL is a combine of Hardman Resources and RAB Capital PLC of the UK. RAB will raise funds for the next 12-18 months of work.
Dampier Oil Ltd., a subsidiary of original licensee Global Petroleum Ltd., Brisbane, will operate the project during seismic acquisition.
Adjacent to discoveries
The length of the seismic survey may be expanded subject to tenders received and whether a nonexclusive arrangement can be agreed with the seismic contractor.
The closest oil or gas discoveries lie 600 km west of the acreage.
An ExxonMobil Corp. affiliate drilled Calamar-X1 in 1981 in the Malvinas basin 215 km east of southern Argentina. The discovery well, which tested 3,145 b/d of oil from Cretaceous/ Jurassic Springhill sandstone at 5,700 ft, was never developed. A Shell affiliate gauged Springhill gas at Salmon-2 east of Tierra del Fuego.
These discoveries signaled an apparent active petroleum system in the Malvinas basin, and Springhill stratigraphic equivalents are expected on the South Falklands acreage, Hardman said.
South Falklands is geologically distinct from the North Falklands basin explored without commercial success during 1996-98.
