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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (596)	5/27/1998 8:01:00 PM
From: Tomas	Respond to of 2742

Amerada Hess to abandon Falklands oil well LONDON, May 27 (Reuters) - Amerada Hess said on Wednesday it would plug and abandon drilling of an oil well off the Falkland Islands. ''The well, which was spudded on Monday 27 April 1998, encountered traces of hydrocarbons; appraisal showed that these were not present in commercial quantities,'' the U.S. energy company said in a statement. Hess said well 14/09-1 in tranche A of the North Falklands Basin ''will be plugged and abandoned.'' The drilling rig Borgny Dolphin will move from Amerada Hess-operated acreage on June 1 and pass to other members of the Falklands Offshore Sharing Agreement. It reverts to Hess in the fourth quarter of this year. Under the agreement, Lasmo was scheduled to be the next company to drill starting in early July, followed by Royal Dutch/Shell and Sweden's Lundin Oil AB and then to Hess for its second well. Drilling began in April off the disputed Falkland Islands, one of the world's last unexplored sedimentary basins. The five tranches to be drilled by the FOSA companies cover an area equivalent to about 30 North Sea blocks. Seven tranches have been licensed in total, covering 12,800 square km north of the Falklands. The blocks are 100 to 250 km offshore. Amerada Hess began drilling in one of the northernmost tranches. British company Desire Petroleum Plc, set up especially to drill off the Falklands, is a partner with Lasmo in two tranches and is also operator with a 100 percent stake in two further blocks. It may join FOSA if it decides to develop these tranches, one of which is twice the size of the other areas. Oil industry officials recently said there was a 10 to 15 percent chance of finding commercial quantities of oil in the remote region in the south Atlantic. Britain and Argentina went to war over the Falklands in 1982. The two countries restored diplomatic relations in 1989 and signed an agreement on a framework for oil and gas exploration in Falklands waters in 1995. biz.yahoo.com