The CNN reported that shares in a British company drilling for oil off the Falkand islands halved Monday, after it revealed the existing supply may not be commercially viable.
Shares in other companies operating off the Falklands also fell amid fears that the region’s reserves may disappoint.
Desire Petroleum informed that “oil may be present in thin intervals but that reservoir quality is poor.”
The company will release the final results of its 30-day test drilling operation on Wednesday. According to company sources it may have to drill deeper to find greater quantities of oil.
Desire had estimated that the North Falkland Basin could contain 3.5 billion barrels of oil as well as significant gas reserves.
The disappointing results dealt a heavy blow to the prospect of a new oil boom off the coast of the Malvinas.
Potential revenues from oil and gas reignited a long-running dispute between the UK and Argentina over ownership of the Falklands.
Last month, Argentine President Cristina Fernandez de Kirchner signed a decree requiring all ships navigating from Argentina to the islands to carry a government permit.
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