Falklands drilling delayed

Offshore staff

(Falklands) - Drilling on Falklands offshore licenses PL003 and PL004 has been delayed.

Rockhopper Exploration, which last February farmed into the Falklands offshore licenses, has declined an option to double its stake.

The company had aimed to gain exposure to early exploration drilling, but operator Desire Petroleum's planning has been hampered by the spiralling cost and limited availability of suitable drilling rigs. As a result, the drilling timetable has been delayed.

For the time being, the partners will focus on identifying high-grade prospects on the acreage, which will likely be drilled in 2007. They expect to take advantage of GSI's planned 2D seismic acquisition campaign over this area early in 2006.

11/14/05