Falkland to Begin 2D Seismic in Dec, Aims for 2008 Drilling

London-based Falkland Oil and Gas (LSE: FOGL) aims to start 2D seismic exploration this month as part of a strategy to begin exploratory drilling in 2008, the company said in a statement.

"The next 18 months are crucial for FOGL as we continue to pursue an aggressive exploration program," according to the statement.

Norwegian marine geophysical company Wavefield InSeis will carry out a controlled-source electro-magnetic (CSEM) survey for Falkland in January.

And sea-bottom coring is due to begin in February, although the work contract is under discussion.

The sea-bottom cores are targeting a number of possible oil seeps in order to demonstrate that oil has been generated and has migrated within the South and East Falkland basins, the statement said.

The company is evaluating three options to secure a drilling rig in 2007.

First, it may form a consortium with other E&P companies in the Falklands region to create a more attractive drilling campaign for rig contractors. The company also may cede an equity stake or interest in the licenses in exchange for the rig or obtain one through a farm-in partner.

Falkland has continued to make presentations to prospective farm-in partners, nearly all of which were "major oil companies," according to the statement.

The company posted losses of 875,314 British pounds (US$1.72mn) in the six-month period ended September 30 compared to a 696,186-pound loss in the same period of 2005.

The company had 21.7mn pounds in net assets as of September 30.

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