Now this should make things interesting
From the
UK Telegraph:
British explorer Rockhopper hits oil in Falklands
Rockhopper Exploration said yesterday that it its Sea Lion prospect had been drilled to a depth of almost 3,000 metres and initial data shows that the well is an oil discovery.
The presence of oil in the Falklands could dramatically improve the UK's tax income from drilling, which is falling as less oil is recovered from the North Sea.
Rockhopper's share price shot up 56�, or 150pc, to 94p following the announcement. Its value had plummeted from 87p earlier this year, as a rival company, Desire Petroleum, indicated that its well in the area was not a commercial prospect. Yesterday, Desire rose 23�, or 63pc, to 61�p.
Sea Lion is one of two blocs where Rockhopper has permission to explore and early reports estimate it contains 170m barrels of oil � with the maximum forecast more like 470m barrels. Later this year, the company will drill its Ernest prospect, which is about the same size.
Considering that ownership of the Falkland Islands has been
disputed by Argentina this should make things interesting.
Back when Desire Petroleum was drilling their dry well, Argentina went to the
United Nations to complain and to ask for a ruling. As if...
It is one thing to claim ownership of some property. It is another thing entirely to support the population on that property, to provide for them, to give them governance under rule of law, to include them in Government programs for infrastructure, to provide education and medical care. All of these are being done by England for the people of the Falkland Islands. Argentina never did this, even back in the late 1800's when the Islands were essentially up for grabs. Now that it is convenient and there might be some value to the islands, Argentina is all of a sudden very protective of 'their territory'.
Posted by DaveH at May 7, 2010 9:34 AM