Desire cheers investors with major Falklands oil find

MIDLAND-based oil exploration firm Desire Petroleum boosted investors today by revealing its latest seismic data has suggested significant oil deposits in two of its prospects.

The Malvern-registered company, which is wholly focused on the North Falkland Basin, said a report prepared by oil consultancy Senergy had shown major recoverable oil reserves in the Elaine and Isobel prospects.

The firm said it was optimistic the find could deliver significant value to investors.

Desire said the CPR (Competent Persons Report) suggested that in a best-case scenario the twin prospects could yield more than 300 million barrels of stock tank oil.

A full prospect inventory will be available in the fourth quarter but Desire said it was pleased because the Elaine and Isobel prospects lay in a licenced area in which Desire has a 92.5% interest.

Commenting on the CPR update, Stephen Phipps, Desire chairman, said: “We are delighted that our prospect inventory continues to strengthen and that some of the best remaining potential in the North Falkland Basin is within (a) licence in which Desire has a strong equity position.  

“The Elaine and Isobel prospects are very attractive drilling targets, particularly as the basin moves into a new phase of activity.  The planned development of the Sea Lion discovery demonstrates the commerciality of major discoveries in the basin and we are optimistic that the Elaine and Isobel prospects can deliver significant value for our investors.  

“As our prospect inventory matures, we will be seeking industry partners to participate in further exploration of our licences and the quality of prospects like Elaine and Isobel provides a strong platform for success.”

Elaine and Isobel are situated in the southeast of the basin and are similar to the Sea Lion prospect in which Desire has also been active.

Desire said the seismic data had indicated oil reserves could be sandwiched between thick layers of sand and rock.