Desire Petroleum: Greenwich Resources Interim Announcement 2000, Chairman's Statement
RNS, July 4
...
The Group holds 7.8 million shares in Desire Petroleum plc representing 7.7%
of the issued share capital. Desire has oil and gas exploration interests in
Portugal and offshore the Falkland Islands.
Desire has recently reported that it has negotiated entry into two further
licences in the Lusitanian Basin in Portugal, making a total of seven
licences. These cover much of the onshore portion of the Basin and part of the
offshore. Mohave Oil and Gas Corporation operates the licences on behalf of a
consortium of companies in which Desire has a 25% interest. The Portuguese
State oil company, GALP, has recently joined the consortium by purchasing a
10% interest.
On 15 June 2000 Desire announced that the Aljubarrota No 3 well in Portugal
had been suspended at a depth of 2,485 metres. The well was drilled to
appraise the gas discovery made by the Aljubarrota No 2 well. Aljubarrota No 3
is situated approximately three kilometres to the north of the No 2 well and
it encountered the same gas column within the Brenha Limestone Formation
penetrated by the No 2 well. A number of drill-stem tests, selected on the
basis of log analysis, were carried out in uncased hole without gas production
being achieved.
Because of water influx from higher formations, it was not possible to drill
the Brenha Limestone with foam as planned and some formation damage may have
resulted in consequence. It is now planned to make a thorough evaluation of
the results of the No 3 well before a decision is made as to further testing
or appraisal drilling.
Desire has reported that the interpretation of seismic surveys offshore the
Falkland Islands, including the detailed survey carried out by Desire in 1998,
demonstrates that the extension of the North Falkland Basin into Tranches I
and L (Desire 100%), is much more highly structured than to the north in
Tranches A, B, C and D. A number of attractive structural closures have been
mapped. The mapping also indicates that, if source rocks similar to those
found in the northern Tranches occur, they could have been buried deeply
enough to generate hydrocarbons. Desire is currently preparing farm-out
documents which will be used to attract new participants in order to finance
future drilling. A sustained high oil price should facilitate this objective. |
