The Falkland Islands comprise some 340 islands and are situated in the South Atlantic approximately 300 miles to the East of South America. The Islands were discovered in 1592 by Captain Davis. The largest islands, East Falkland and West Falkland, comprise the bulk of the 12,000 sq. kms of land. The Capital, Stanley, is on the Eastern side of East Falkland Island.

Six wells were drilled in the North Falkland Basin in 1998. Oil and gas shows were recorded in five of the six wells. The oil price was approximately $10 at the time and none of the wells were declared a commercial success.

The well results confirmed the presence of one of the richest source rocks in the world (source: BGS).