MercoPress. South Atlantic News Agency

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