FALKLAND Oil and Gas said yesterday it was to drill the first exploration well in the East Falkland Basin in the first half of this year.
The Toroa prospect has recoverable hydrocarbons estimated in the range of 380million to 2.9billion barrels.
Falkland said it had reached agreement with Desire Petroleum to contract the Ocean Guardian rig to drill the well.
The Ocean Guardian is to start work in the south Atlantic this month.
Desire is first up to drill in the North Falkland Basin, with Rockhopper Exploration next in line in this area.
Falklands expert Gavin Farquhar, a partner with legal firm McGrigors, said: “This pooling of resources had been expected and confirmation that Desire will share the Ocean Guardian’s capabilities with Falkland Oil and Gas is welcome news.
“It underlines the determination of the exploration companies now active in the Falklands to co-operate where possible and maximise opportunities to give this drilling campaign the optimum chance of success.”
The British Geological Survey has estimated the Falkland Islands may contain up to 60billion barrels of oil equivalent.
Oil slipped to $74 a barrel on electronic trade in New York yesterday as concerns over Greece outweighed early optimism over Japanese growth. Floor activity was closed for President’s Day.
In London, Brent crude for April delivery settled down 39 cents at $72.51.
Trade was quiet with prices moving in a 65-cent range.