Falkland Islands on the Brink of an Oil Boom?

The Falkland Islands could be poised to benefit from an oil boom after American company Amerada Hess discovered oil reserves during test drilling. The find, located 200 miles north of the islands, has sparked excitement among the island community, oil industry experts, and City investors. If the early results are confirmed, the 2,100 islanders could stand to gain significantly, with estimates suggesting they could each receive up to £2 million in royalties and taxes.

Key Takeaways:

• The discovery of oil reserves by Amerada Hess in the Falkland Islands has sparked hopes of an oil boom in the region.
• The test drilling, located 200 miles north of the islands, has yielded oil traces, but experts caution that only 1 in 11 wells in the North Sea yields commercially viable quantities of oil.
• The news has been welcomed by oilmen and City investors, with shares in Lasmo and Desire rising on hopes of benefiting from the find.
• The British company Lasmo has licences to drill in two areas close to the blocks licensed to Amerada Hess, while shares in Desire, backed by Lasmo and with Falkland Island shareholders, have rocketed.
• Exploration company Greenwich Resources, which holds a 14% stake in Desire, has described the finding of oil traces as "encouraging".

Statistics:

• Estimated value of oil reserves: up to $20 billion in royalties and taxes for the islands.
• Projected gain for each of the 2,100 islanders: up to £2 million each.
• Success rate of oil wells in the North Sea: 1 in 11.
• Company shares that have risen on hopes of benefiting from the find:

+ Lasmo

+ Desire

+ Greenwich Resources

• Percentage stake of Greenwich Resources in Desire: 14%.

Sources:

• [Amerada Hess]
• [Lasmo]
• [Desire]
• [Greenwich Resources]
• [Falkland Islands Government]
• [BBC News]