British company to set new drilling platform in Malvinas Islands

British company Falkland Oil and Gas (FOGL) unveiled it has kept dialogue with potential partner to look for oil and gas at the Malvinas Islands and announced the arrival of another drilling platform to the area by the end of January 2012.

The platform will be drilling two wells for the Borders & Southern wells, another oil drilling British company, and two wells for FOGL. With this new drilling not authorized by the national government, the Islands could turn into an oil producer zone after Rockhopper, the third British company working in the Argentine Sea, made its discovery in 2010.

The prospect of the British-governed province becoming an oil producer, however, is controversial, with Argentina claiming sovereignty to the islands that lie around 300 miles from its coast.

FOGL said it was fully-funded to drill its first well but drilling a second well could require it to secure additional financing, depending on the depth and expense of the first well.

"The company continues its discussions with a number of oil companies who have expressed an interest in participating in FOGL's exploration drilling programme, and a successful conclusion to these discussions would provide greater flexibility to the company's drilling programme," the company said in a statement.