FINN(COM) DAILY RECORD: TUESDAY, 09 NOVEMBER 2004

Compiled by J. Brock (FINN)

3D COMPLETED SEISMIC IDENTIFIES FALKLANDS OIL PROSPECTS

By J. Brock (FINN)

The Board of Desire Petroleum has announced that the interpretation of both the fast track and final processed data 3D seismic survey over Tranches C and D has been completed.  They further announce that in addition to the new 3D data, the previously acquired 2D data was incorporated in the interpretation where no 3D data was available.

Analysis included in the interpretation covers various seismic attributes as well as geological study.  Excellent in quality, the data and the new interpretation largely confirms a new geological model proposed by the Company.  Other new prospects have been identified and are associated, in particular, with well-defined alluvial deltas and fans.

Data interpreted shows that within the area covered by the 3D seismic, a number of prospects have been identified.  Of these, six are large enough to contain economic accumulations of oil in the range of 100 - 1000million barrels.  According to information received from Desire Petroleum Plc, these six areas are in addition to prospects already identified by 2D seismic outside the area covered by the 3D survey.

Now for more features!  The 3D seismic has shown the presence of Direct Hydrocarbon indicators (DHI’s).  In particular, there are considerable indications of the presence of natural gas as well as oil.  Considerable volumes of gas were encountered by the first well drilled by Shell in Tranche B but the well was not tested because, at the time, the value of gas was too low to be economically producible in an area as remote from markets as the North Falkland Basin.  However, since that time, the price of gas (along with oil) has risen sharply and new technology such as gas to liquid (GLT) in which diesel fuel is produced from natural gas, have been developed.

This being so, the Board commissioned a scooping study on the economics of gas production, which has shown that, at prices well below the current levels, gas accumulations would be economic, given a field equivalent size to a 300million-barrell field.  Several of the prospects identified to date match this requirement and it follows that natural gas can now be added to the economic prospectivity of the North Falkland Basin.

REPORT OF THE PLANNING & BUILDING COMMITTEE

HELD 4^th NOVEMBER 2004

By Graham France

Members of the Planning and Building Committee were greatly outnumbered by “members of the public” when a total of thirteen persons attended to witness Part 1 of the Committee’s activities.  However, of those there were eleven present on a training course in minute-taking organised by Eileen Davies.

It was the first meeting to be attended by the recently arrived Environmental Planning Officer (EPO), Dominique Giudicelli, and Building Adviser  John O’Gara.  It was to be a relatively short meeting with only thirteen planning applications to be considered, another of those listed having been withdrawn by the applicant, and Part 1 lasted barely thirty minutes.

With several members absent and all of whom gave apologies, including two overseas, only three were present: the Hon Richard Cockwell who chaired the meeting and was supported by the Hon Norma Edwards and Mike Harris.

Previously deferred applications which were again deferred to await further information included the outline application submitted by Mr and Mrs Derek Cantlie for the erection of a dwelling on land at 5 Kent Road, and the sign proposed for display at Atlantic House on Philomel Street by Energise F.I. Limited.  Similarly deferred was the submission by the Falkland Islands Meat Company who wished to create a disposal site on the beach south of the Sand Bay Abattoir for “OVS and MHI inspected low health risk surplus abattoir waste”.  It was agreed that there was still insufficient information provided, but members were in agreement that due to time constraints it may be necessary to hold a special meeting when the further details were to hand.

Next on the agenda was just one application to renew a previously granted consent.  The container at Lee Molkenbuhr’s property at 19 Sulivan Street was given a further twelve month’s extension but members agreed that, in accordance with their policy towards such structures, there would be no such further approval.

Moving on to the nine new applications seeking planning permission, the Committee first looked at plans for a pair of semi-detached one-and-a-half storey dwellings at 6 Gleadell Close submitted by Mr and Mrs Ian Doherty and Chris Hawksworth.  Noting the recommendation to grant conditional approval including the need to provide not less than two off-street parking spaces for each property, members agreed to approve the submission.

Also approved, with conditions, were the following: the display of twenty-two signs, each 150mm by 150mm, by Bruce Wilks at various locations along Ross Road; the erection of a “Glasdon Hut” by Cable and Wireless on land at the corner of Goss and Biggs Roads with the finish to be to the satisfaction of the EPO; a new access onto Stanley Bypass from the south boundary of 53 Lookout Industrial Estate for Stanley Body Repairs; a mussel farm consisting of a single line of floating buoys and ropes on a site between Pleasant Island and the settlement at Fitzroy for Simon Hardcastle; the erection of a conservatory at 5A Ross Road West for Geoff Pring; and a garage at 38 Ross Road for Tony Smith.

Two applications sought permission in principle for development: South Atlantic Marine Services Limited applied for an extension to their existing jetty to create a marina with eight berths and here, whilst granting outline planning permission subject to the standard conditions, it was agreed to assess the possibility of difficulties with the existing sewage disposal pipe in the vicinity and any increase in traffic at the detailed stage of plans.

The Committee also granted permission in principle for an extension to the dwelling and the erection of a conservatory at 30 Ross Road East for Mr and Mrs R Biggs.

The Building Adviser then reported upon eight submissions seeking Building Permits, five of which were still the subject of deferment due to absence of sufficient information having been previously deferred at earlier meetings.  He was however, pleased to advise that Permits could be granted for work to enlarge the first floor flat at Lady Hunt House on John Street; Geoff Pring’s conservatory at 5A Ross Road West; and Tony Smith’s garage at 38 Ross Road.

There being no applications for off-street parking grants, the Chairman closed Part 1 of the meeting with the details of the next meeting which will be held on Thursday 2^nd December at the Liberation Room and commencing at 9am.

FALKLANDS GOLD: AN OFFER FOR SUBSCRIPTION

By J. Brock (FINN)

If you ever wanted to invest in gold and other minerals in the Falklands, then now is your chance.  Falkland Islands Holdings Plc (FIH) has a 21.9% interest in Falkland Gold and Minerals Limited (FGML), which made the following announcement today.

“Falkland Gold and Minerals Limited (FGML) an exploration company, announces that it intends to implement a placing and offer for subscription to raise up to £8Million and apply for admission of its shares to trading on the Alternative Investment Market (AIM)”

Incorporated in February 2004, FGML has begun an exploration programme for gold and other minerals in the Falkland Islands.  The Company holds the only licence to explore for gold and minerals in the Falkland Islands.  These exclusive rights allow FICL exclusive access and exploration rights to substantially all of the onshore land mass of the Falkland Islands.  That’s 12,000km(2).

The licence is currently valid until January 2007 but is guaranteed an extension to July 2009 on admission to the AIM.  Money raised will be used to undertake further stages of FGML’s exploration programme.  FGML further announces that:

“FGML has recently extended its board and announces the appointments of Richard Linnell as Executive Chairman, Mark Fresson as Executive Finance Director and Dr. Robert Weinberg as non-executive Director”.

Commenting on the flotation and new appointments, David Hudd, Non-executive Deputy Chairman of FGML said:

“We look forward to the start of our drilling programme, which we intend to fund through the proceeds of the placing and public offer.  Our new directors bring additional experience to FGML, and we all look forward to the next stage of the Company’s development.”

FIBS NEWS DIRECT: 09 NOVEMBER 2004

COURT NEWS:

Two inquests are being heard in the Coroner’s Court today.  The inquest into the death of Harold Rowlands is opened at 1000 today. HM Coroner, Claire Faulds, expressed her sympathy to family and friends on both a personal basis and an official point of view. Concluding the inquest, the Coroner said she couldn’t definitely say what had happened and she recorded an open verdict.  The inquest into the death of Cheryl Backhaus is opening at 1400.

PHOTO EX PRIZES:

Prizes for the Falkland Islands photographic competition are worth £5,000.00.  Top prizes on offer are a return UK flight via Chile, digital cameras, printers, a one day workshop with a wildlife photographer, back packs and a framed print.  The Falkland Islands Tourist Board launched the Competition on Friday and entries will be accepted until the 26^th of April.  Director of Tourism, Connie Stevens, says they are aiming to encourage as many people to visit the Falklands as possible to enter.  Sponsors include Kodak and sponsors like high profile companies will help raise the Falklands profile.  Once the competition closes an exhibition will be run and winners will be published in Practical Photography Magazine.

TRAINING CENTRE:

The Training Centre is one of Government’s newest areas.  At the moment, one of their focuses is helping to arrange apprenticeships for school leavers.  I asked Jock Elliot (JE) from the Centre how it works.

JE:  We’ve got some 6^th formers coming to see us because they have expressed an interest in certain apprenticeships.  We will show them what sort of apprenticeships are available.  We have already got two young people from the 6^th form who are actually on work placements with private sector employers with a view to becoming apprentices or trainees in future.

CG:  What have you got coming up in the near future?

JE:  In January we are planning to bring down some trainers from Australia, who will be training some local assessors and trainers for the Public Works Department and various private companies to assess plant operators against a set of new national standards.  Hopefully this will enable the Islands to be more self-sufficient in future.  We are also advising on the new UK driving licence courses, health and safety awareness to FIG through induction packages and to those private sector companies, who ask for it.  And so far two companies have now put their staff through the system of health and safety in the work place.

CG:  The operation on plant has caused a bit of a stir recently, hasn’t it - the way that the training has been done?

JE:  I think what caused the mix-up is that CITV have been asking for something like 300 hours on one specific piece of equipment over 5 years and some of the local operators have actually held tickets for five years and haven’t maintained them.  We overlooked all of them and made sure the local lads don’t miss out on having national standards.

CG:  Do you think, then, if they are not conforming the training to the standard required that they are actually capable of performing the task?

JE:  I think the plan is to put an assessment matrix into place that will ensure competence on specific plant.  And, I think for insurance purposes, etc. that a person has competence to operate a piece of equipment. 

CG:  What about training courses that will be taking place in the future?

JE:  We are planning to run another session that we will put out to FIG and the Chamber of Commerce and published in the Newspaper and other media for January to March courses that will be run by the centre.  We always try and get three months ahead just to let the community know what’s going on.

ARGENTINA:

In Argentina leading Argentine politicians are already saying that President Nestor Kirshner would be a good candidate for re-election in 2007.  Two governors of the ruling Paronist Party are reported in Clarin and LaNaceon to have expressed their support.  Former president, Carlos Menem says he will also be standing for election.

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