AGR Moves Ahead with Falkland Islands Drilling Program

AGR Petroleum Services (AGR), the world's largest independent well management company, will undertake a £2 million multi-well drilling program, on behalf of Desire Petroleum next year.

Key to the success of the project, given the remoteness of the location, has been the identification and contracting of a suitable, cost effective drilling rig. The combined efforts of AGR and Desire have now resulted in a contract being executed with Diamond Offshore Drilling International for the use of the 3rd generation semisubmersible drilling rig, the Ocean Guardian. The company will drill four firm wells in the North Falklands Basin. A further six one-well options have also been secured under the rig contract.

The contract win follows AGR's successful completion of a drilling program earlier this year off the west coast of Ireland where it also utilized the Ocean Guardian.

Ian Burdis, Vice President of Well Management at AGR said, "We have worked with Desire over several years and are delighted to have been instrumental in securing the rig for this latest exploration activity. Our teams have extensive experience of this type of remote project and we look forward to working with Desire and our service providers to deliver a successful drilling program."

Drilling activity is expected to begin in February 2010. The Ocean Guardian is due to sail from Invergordon to the region in November this year.

AGR Petroleum Services has operated more than 350 wells for at least 75 clients in 15 countries. The company has been active in every type of drilling environment including offshore, shallow water, deep water and extended reach.