Desire cheered by new oil exploration report
MIDLAND-registered oil exploration firm Desire Petroleum has said it is optimistic about the long-term drilling prospects of its latest search area.
The Malvern company, wholly focused on the North Falkland Basin, said its latest Competent Person’s Report (CPR) had identified 11 potential prospecting areas which together could yield Desire a net 322m barrels of oil.
The CPR, prepared by Senergy (GB) Ltd, a major independent consultancy specialising in reservoir engineering, geology, geophysics and petroleum economics, covers around 40% of Desire’s current northern licensed areas
The Senergy evaluation also recognises the results of the recently completed well drilled by Desire’s partner in the area, Rockhopper Exploration.
Desire said the owner of the Ocean Guardian drilling rig, Diamond Offshore Drilling (UK) Ltd, was in discussions with a third party which could result in the rig leaving the Falkland Islands in Q1 2012.
However, it said until such time as a follow on contract for the rig was confirmed, there was no end date for the current contract. This allows for an unspecified number of further drills to be carried out provided Diamond is consulted well in advance, however, this is likely to be limited to just one due to the time constraints.
Stephen Phipps, chairman of Desire, said: “The CPR summary published today confirms our belief in the prospectivity of the fast track areas of (licence areas) PL003 and PL004. The farm-out agreement with Rockhopper announced on October 12, 2011 will ensure that at least one well is drilled on this acreage in the current drilling campaign.”
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