U.K. Firms Mobilize in New Falklands Foray

Rising Oil Prices and Advances in Drilling Technology Lure Prospectors Despite Inclement Weather, Chilly Politics

LONDON

Analysts say that as much as 60 billion barrels of high-grade oil could be found in the 200-square-mile economic zone surrounding the islands. If estimates prove correct, this could make the Falklands one of the world’s largest oil reserves, comparable with the North Sea, which so far has produced about 40 billion barrels.

Next month, Desire Petroleum PLC and Rockhopper Exploration PLC will begin exploring a region of the North Basin, 22 miles from the islands, where they have shared and separate prospects.

WSJ