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Gold/Mining/Energy : Desire Petroleum -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (86)	7/25/2000 2:09:19 PM
From: Oily1	Respond to of 417

Anglo-Argentine Oil Talks. In crucial Anglo-Argentine oil talks (in London on July 26) setting the tone and attitude of the De La Rua Government for future co-operation, the British Government’s view is that the more the two sides can agree, the greater will be their mutual benefit in encouraging international oil companies to invest in exploration in the South West Atlantic. The United Kingdom’s main negotiator in the Joint Commission is a senior Foreign Office official, Mr John White, backed up by a strong Falkland Islands Government team of its Director of Mineral Resources, Mrs Phyllis Rendell; Attorney General , Mr David Lang; and an expert from the British Geological Survey, Dr Phil Richards. Britain believes that a sound agreement can be reached with the new Argentine Government on offshore oil exploration based upon the 1995 Oil Agreement negotiated with the previous Menem Administration in Buenos Aires. Britain hopes pragmatism will prevail despite indications by the De La Rua Government that they will not co-operate in oil exploration in the joint special area between Argentina and the Islands designated in the 1995 Agreement if the Falkland Islands Government unilaterally issues more drilling licences north of the Islands. Recent joint talks on fishing were a positive augury, making good progress in expanding co-operation. Foreign Office Minister John Battle recently described the prospect for oil and gas development in the South Atlantic as “exciting” but “long-term”. It was planned to launch a joint licensing round with Argentina for exploration in the agreed Special Co-operation Area straddling Falklands and Argentine waters. Regular meetings with Argentina have brought them a “long way towards getting this ambitious project off the ground”. In an interview with the Mercopress London Correspondent earlier this year, the Minister emphasised the importance of encouraging the oil industry to remain involved in the South West Atlantic and to impress upon them that talks with Argentina are amicable and going ahead. Otherwise they would invest elsewhere. “We have got to work together”, he said.” I think we can come up with a damn decent agreement that gets investment, harvests what resources are there without environmental damage, and provides revenue”. Of the six wells that were drilled in the North Falklands basin in 1998, five found traces of oil, though not in commercially viable quantities. But the Falkland Islands Government is optimistic about the analyses and independent conclusions, which indicate the formation of 60-billion barrels of oil in very rich source rock in the North Falklands basin, second only to an area of China. The Falkland Islands Government is eager to encourage new oil companies to join those who hold existing drilling licences in the North Falklands Basin. Harold Briley, London

To: Tomas who wrote (86)	7/25/2000 2:11:56 PM
From: Oily1	Read Replies (1) \| Respond to of 417

Falklands could have 60-billion barrels of Offshore Oil. A unique Falkland Islands Government Forum on the scope for economic development and investment opportunities has opened in London with optimistic assessments for further offshore oil exploration and for expansion of an already highly successful fishing industry. The Forum ( on July 12) entitled “Sustaining a Secure Future”, attracted more than 125 delegates, including technical experts, businessmen and potential investors, academics, politicians and journalists. The conference began with a re-affirmation of British Government support for the Islanders sovereignty and security, and rejection of Argentina’s claims. In a keynote speech, entitled ”A Political and Economic Overview of the Islands”, the Foreign and Commonwealth Office Minister of State with responsibility for South American affairs, Mr John Battle, MP, also welcomed Argentina’s improving relations and economic links with the United Kingdom, and renewed co-operation and travel links between Argentina and the Falkland Islands. Britain stresses the importance of this co-operation in encouraging oil companies to conduct further offshore exploration to build on the knowledge gained from the six wells drilled in 1998, five of which found traces of oil, though not in commercially viable quantities. In an upbeat analysis of progress so far and prospects for the future, the Director of Mineral Resources, Mrs Phyl Rendell, said recent calculations by the British Geological Survey and the Shell Oil Company indicate that organic-rich source rock has probably formed up to 60 billion barrels of oil within the North Falkland Basin. She made it clear that the Falkland Islands Government is eager to encourage new oil companies to join those who hold existing drilling licences in the North Falklands Basin. She declared: “Further exploratory drilling will be necessary to prove the hypothesis that there is oil trapped beneath the organic-rich source rock. The current licensees are attempting to raise the necessary funds to enable this drilling to take place, and are actively searching for new oil company partners to provide extra money to allow such drilling to occur. The Falkland Islands Government is preparing an open door licensing policy in order to accommodate expressions of interest for unlicensed acreage”. She also indicated that the Falklands Government would welcome progress in co-operative oil ventures with Argentina in the Special Co-operation area South West of the Islands designated for this purpose in the 1995 Anglo-Argentine Oil Agreement. “Discussions”, she said, “ are progressing ...with a view to completing preparations for a licensing round of the Special Co-operation Area as soon as is practicable”. The Special Co-operation Area is administered by a Joint Commission of United Kingdom and Argentine Government delegations with the participation of Falklands Government officials. Mrs Rendell confirmed that the drilling data has revealed the presence of a rich organic source rock, the necessary prerequisite for any oil to be formed in the area. “Although large accumulations of oil were not found by the first six wells, BGS suggests that this is because all the wells targeted potential oil fields above the source rock, whereas new geological modelling suggests that it would be better to look beneath the source rock”. She led the discussion on one of four main themes of the Forum under the heading “Responsible Mineral Exploration”, in which she was joined by two British Geological Survey experts, Dr Nigel Fannin and Dr Philip Stone.

To: Tomas who wrote (86)	7/27/2000 12:17:38 PM
From: Oily1	Respond to of 417

Fast growing interest in search for Falklands oil. New Exploration Contracts. An article dated 17 July 2000 in Lloyd’s List Energy Day reports that Desire is leading on offshore Falklands farm-in papers. Desire Petroleum, the UK-based junior, is set to become the first company to issue farm-in documents for its assets lying to the north of the Falkland Islands. Other operators believed to be preparing similar documents before the end of the year are Argos Evergreen for tranche A, Shell Petroleum Development for tranche B and Sodra tranche F. Desire now operates tranches C, D, I and L.The first five-year exploration contracts, the Falklands Offshore Sharing Agreement, expire in October 2001. Director of Mineral Resources for the Falkland Islands, Phil Rendell is quoted as saying that the next Falklands Offshore Sharing Agreement will last seven years and be more modest with only two to three wells to be drilled. Dr Colin Phipps, chairman of Desire Petroleum, believes that they can find reserves of 60 billion barrels of oil. Interest is growing fast for exploration to start to the south-west of the Falkland Islands in the Joint Co-Operation Area. Here, four blocks, 45, 46, 57 and 58 straddle the Falklands/Argentine maritime boundary and are to be licensed between the countries. British Seismic company Spectrum Energy is offering a package of seismic data for the zone. Although no drilling has been done in the area it is adjacent to the Magallenes Basin which contains many oil fields, including the Hidra field with reserves of over 130 million barrels. Argentine, British and Falkland Islands’ officials are meeting this week in London to push ahead with plans to issue a joint licence round for the blocks Source: FIBS