Hardman said initial results from the survey had identified numerous new leads, with indications that some could potentially be commercially significant in size.

“A full evaluation of these leads, supplemented by further investigations, will be necessary before technically sound and economically viable drillable prospects can be defined,” Hardman managing director and CEO Simon Potter said.

“The results of the 2D seismic are very encouraging," he said.

"Initial interpretation of the new data gives considerable cause for optimism. There is a wide range of play types with several different styles identified.”

Potter said Hardman intended to identify and define prospects in the immediate future so that they could be considered for 2007 drilling.

“The number of leads identified has exceeded our estimates and we believe it has greatly enhanced the licence area’s value," he said.

“It is clear that the scope of work needed to maximise the potential of our acreage has to be increased significantly. Hardman’s share of funding for such an expanded program will be sourced from cash at hand.”

Interests are Falkland Oil & Gas Ltd 77.5%, Hardman Resources 22.5%.