Global Petroleum Regulatory News (GBP)

26 Jul 2006 09:24

Global Petroleum Ltd26 July 2006 Global Petroleum Limited 26 July 2006 Global Petroleum advises that the following announcement was made by FalklandOil and Gas Limited (FOGL) on the 25 July 2006. Global Petroleum holds a 14%interest in FOGL. John ArmstrongExecutive ChairmanTelephone: 61 7 3211 1122Fax : 61 7 3211 1122Web: www.global-petroleum.co.uk Falkland Oil and Gas Limited("FOGL" or "the Company") Falkland Oil and Gas to conduct electromagnetic survey Falkland Oil and Gas Limited ("FOGL") has signed a Letter of intent withOffshore Hydrocarbon Mapping plc ("OHM") to undertake a Controlled SourceElectro-Magnetic survey ("CSEM") over the company's licences in the South andEast Falkland Basins. The use of CSEM technology in this environment is particularly appropriate andexciting. CSEM is a method which investigates the electromagnetic properties ofrocks and has a recognisable response when oil and gas is present. CSEM is anextremely cost effective method of high grading an extensive inventory ofexploration prospects and leads. CSEM imaging works best under certainconditions, including deepwater (>500metres), simple sand & shale geologicalsequences, and large traps (prospects), all of which are prevalent within FOGL'sSouth & East Falkland Basins. This programme has the potential to indicate which of our numerous prospects maycontain hydrocarbons. Our strategy will be to obtain CSEM data over many of thelarger prospects and based on the results, infill 2D seismic will then beacquired in order to determine the best sites for exploration wells.This is the first part of our revised forward exploration programme recentlydiscussed with the Falkland Island Government. FOGL had already begunpreparatory work which will enable rapid implementation of a CSEM survey,further demonstrating FOGL's commitment to this exploration acreage.We expect to commence both the CSEM and 2D seismic surveys before the end of2006 and be in a position to announce the results early next year. Tim Bushell, Chief Executive Officer commented: "We are very excited by this new technology and its application in our licences.The use of CSEM imaging is an appropriate exploration tool given the largenumber of prospects and leads that we have identified. We believe that CSEM canhelp to significantly reduce risk, improve the chance of success and allow us tofocus on the best prospects for drilling in 2008". Enquiries: FOGLTim Bushell, Chief ExecutiveRichard Liddell, Chairman 020 7563 1260 College HillNick Elwes / Paddy Blewer 020 7457 2020 Note to Editors Controlled Source Electro-Magnetic imaging (CSEM) is potentially the mostimportant new technology in the field of offshore oil & gas exploration sincethe advent of 3D seismic some twenty years ago. CSEM is an innovative offshoregeophysical technique, employing electromagnetic remote-sensing technology todetect the presence and extent of hydrocarbon accumulations below the seabed. The CSEM survey uses a dipole source that is towed just above the seafloor totransmit an electromagnetic field into the earth. This field is modified by thepresence of subsurface resistive layers and these changes are detected andlogged by an array of receivers placed on the seabed. Because hydrocarbon-bearing formations are highly resistive compared withsurrounding formations, a CSEM survey can indicate the presence of oil and gasin offshore situations. CSEM imaging can significantly reduce the risk ofdrilling dry exploration wells creating considerable value for oil & gasexplorers. The technique was first used offshore Angola in 2000 and has since become a keydeepwater exploration tool for the major oil companies. Very high success rateshave been quoted by these companies, particularly when the results of a CSEMsurvey have been integrated with seismic interpretation. For further information on OHM please see www.offshorehydrocarbonmapping.co.uk This information is provided by RNS The company news service from the London Stock Exchange