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

To: Aggie who wrote (850)	11/23/1998 3:57:00 PM
From: Tomas	Respond to of 2742

The Falklands: "Desire Petroleum believes that further exploration is justified" Shell announce completion of Fitzroy-1 By J. Brock, Falkland Islands News Network Shell have announced the completion of their second exploratory well in the North Falkland Basin. Fitzroy-1 had shows of hydrocarbons but no accumulations in economically viable quantities. This well is the final in a 6 well drilling campaign which began in April this year with the Amerada Hess exploratory well drilled by Borgny Dolphin. There are no follow-up wells planned and it is expected that Borgny Dolphin will now leave the area. All of the companies involved in the exploratory drilling campaign will now be interpreting the data acquired in order to assess the hydrocarbon potential of the North Falkland Basin. The initial results from the drilling campaign have demonstrated the widespread presence of good quality source rocks together with formations with good reservoir potential and the North Falkland Basin appears to host a well developed hydrocarbon system. To date no commercially viable hydrocarbon accumulations have been discovered, but one of the companies, Desire Petroleum, believes that further exploration is justified. Unfortunately, the present historically low level of oil prices is inhibiting the willingness of many companies to carry out exploration. This means that it is likely that there will be a period of inactivity , as far as further exploratory drilling is concerned, in the North Falkland Basin. This lull will continue until the price of oil rises to a point where more exploratory drilling money is back in the companies' budgets and the proposition of drilling in the North Falkland Basin is once again attractive. Desire Petroleum, the Falklands owned oil company, is currently processing recently acquired seismic to tranches "I" and "L." However, if Borgny Dolphin leaves the area, it may be some time before the rig is available to drill an exploratory well in these tranches. If this is the case, the Board of Desire will consider whether or not it is appropriate for the company to seek other opportunities outside the Falkland Islands. More later sartma.com