Here's a copy of an article from the Financial Review. Energy...

Here's a copy of an article from the Financial Review.


Energy venture looks at waters off Falkland Islands 9/07/02

AFR News - 09.07.02 02:58

Jump to first matched term
Angela Macdonald-Smith


Emerging oil and gas explorer Global Petroleum and Hardman Resources have joined forces to pick up an extensive package of exploration acreage over the little-explored region south and east of the Falkland Islands in the South Atlantic.

The consortium, which also includes Falkland Islands Co, the main infrastructure and commercial entity of the UK overseas territory, will be seeking substantially sized discoveries of around 100 million barrels, said Global Petroleum executive chairman John Armstrong.

"I would think we'd be wanting to target opportunities that were 100 million barrels to give us a fighting chance of making that commercial," Dr Armstrong told afr.com, pointing to the area's remoteness, the frontier nature of the exploration and the great water depths that mean that a small discovery would not be viable for development.

The move comes as Global Petroleum carries out a $15 million capital raising to create an oil and gas explorer capitalised at $40 million. The new company is based on the restructured and recapitalised former mineral explorer Apollo Group Ltd. It is to some extent modelled on explorer Hardman Resources, whose chairman Alan Burns is a non-executive director at Global.

The consortium, in which Global has a 50 per cent stake and Hardman 30 per cent, has secured 10 adjoining offshore exploration licences covering an area of 57,700 square kilometres.

Dr Armstrong noted the potential of the area, which is four times the size of the petroleum acreage already under licence to the north of the islands.

"The southern Falkland Islands province is once of the last international frontiers for new petroleum exploration and the licences offered are on favourable industry terms," he said.

Dr Armstrong said that the consortium has committed to acquiring some existing seismic data over the area, which it will do over the next few weeks at a cost of several hundred thousand dollars. That will enable it to determine which prospects need to be further explored.

Should the decision be made to drill any prospects, the consortium would likely seek the entry of an experienced offshore operator to lead that work, Dr Armstrong said.

Commenting on the progress of the $15 million capital raising, Dr Armstrong noted good interest among brokers to hear more of the company's plans but said it was too early to comment on the take-up of shares.

Hardman Resources shares were 3¢ stronger at 72¢ around midday, while Global Petroleum shares are due to list on the ASX in mid-August.


Regards M.