FOGL, listed on London’s AIM, said on Friday that the analysis of the three-month CSEM survey had provided “encouraging results”.
These included positive CSEM anomalies, indicating the possible presence of trapped hydrocarbons and improved definition of its top-ranked prospects as a result of the 2D seismic infill surveys.
FOGL chief executive Tim Bushell said the company was “delighted” with the results of its 2007 exploration program.
“We have now identified a number of prospects that are seismically well defined and also have positive CSEM evidence for the presence of trapped hydrocarbons,” he said.
“Furthermore, all of these prospects have substantial reserve potential. The results of the CSEM and 2D seismic infill surveys have reduced exploration risk and have considerably improved the chances of finding commercial quantities of oil and gas within our licences.”
A relatively new industry technique, CSEM uses electromagnetic remote-sensing technology to detect the presence and extent of hydrocarbon accumulations beneath the seabed.
Usually considered a complement to seismic, the technology offers the promise of fewer dry wells, improved ranking of development prospects, and more accurate or reduced appraisal drilling.
FOGL’s 750km survey was undertaken by Offshore Hydrocarbon Mapping along seven lines, over 12 prospects.
This program exceeded the company’s licence commitment to the Falkland Islands Government.
FOGL said the most encouraging CSEM anomalies were identified over the Loligo, Garrodia, Nimrod, Caird, Toroa, Lutra and Undine prospects, which also benefitted from seismically derived direct hydrocarbon indications.
“All of these features could contain large amounts of oil and gas, with individual prospects containing potential recoverable volumes (mean un-risked resources) ranging up to 3.5 billion barrels,” the company said.
Basic processing is complete on all lines, and enhanced processing and interpretation will continue over the next few months.
The CSEM data has been combined with FOGL’s seismic interpretation and images, to highlight prospects of interest.
Looking ahead, FOGL intends to integrate the CSEM results with existing and new seismic to produce a shortlist of the best drillable prospects.
This work will be carried out together with farm-in partner, BHP Billiton, which will take over operatorship of the licences from January onwards.
