CSEM is a relatively new offshore geophysical technique, which uses electromagnetic remote sensing technology to detect the presence and extent of hydrocarbon accumulations below the seabed.

FOGL, which signed the LOI with US-based Offshore Hydrocarbon\Mapping plc (OHM), said CSEM imaging worked best under certain conditions, including deepwater (less than 500 metres), simple sand and shale geological sequences, and large traps , all of which are prevalent in the South and East Falkland Basins.

FOGL CEO Tim Bushell said the company’s strategy was to acquire CSEM data over many of the larger prospects and based on the results, acquire infill 2D seismic to determine the best sites for exploration wells.

“We are very excited by this new technology and its application in our licences,” Bushell said.

“The use of CSEM imaging is an appropriate exploration tool given the large number of prospects and leads that we have identified. We believe that CSEM can help to significantly reduce risk, improve the chance of success and allow us to focus on the best prospects for drilling in 2008.”

The company said this was the first part of the revised forward exploration program, as recently discussed with the Falkland Island Government.

Both the CSEM and 2D seismic surveys are due to begin before the end of this year, with the results to be announced the results early next year.

ASX-listed junior oil and gas explorer Global Petroleum owns a 14% shareholding in FOGL.