Explorers return to Falklands

12 April 2012

THE oil search is resuming off the Falkland Islands, six years after the last attempts ended in disappointment. A new licence has been awarded to Aussie explorers Hardman Resources and Global Petroleum, with local retail and tourism group Falkland Islands Holdings.

This time, the hunt switches from north of the islands - where six wells were drilled in the mid-1990s - to the south, where the water is deeper, but potential finds are bigger. Five of the six northern wells found oil traces. Any discovery needs to be sizeable to be commercial in the remote South Atlantic.

Exxon drilled a well in nearby Argentinian waters in 1981. It flowed 3,000 barrels a day of oil, but has never been developed.

Hardman managing director Ted Ellyard said the group plans to spend some £2m on seismic work over the three-year licence term. Any drilling would follow later. 'It is very early days,' he said. Hardman has 30%, FIH 20% and Global, which is currently raising funds, 50%.

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