The Falkland Islands: oil exploration
Desire Petroleum, Chairman's Statement
RNS, April 24
...
The Falkland Islands
As a result of the confirmation, by two independent studies, of the presence
of a world-class source rock in the North Falkland Basin and the publication
of their results by the British Geological Survey and Shell Production and
Development Limited demonstrating that, potentially, up to sixty billion
barrels of oil appear to have been generated and expelled from the source
rock, Desire has concentrated studies on identifying where this oil may have
accumulated. To date, these studies have identified eight significant
structures together capable of containing more than two billion barrels of
recoverable oil. The additional seismic acquired, together with Lundin Oil AB,
was designed further to delineate prospects in Tranches F, C and D and this is
now being interpreted.
Farm-out documents have been prepared and discussions are continuing with
potential farm-inees. The prospectivety of the Basin is not in doubt and the
resumption of drilling is principally a matter of timing. The cost of bringing
a rig to the Falklands is high and several wells need to be drilled to justify
doing so. Accordingly, the Company intends to initiate discussions with other
Licence Holders, as well as potential partners, with a view to organizing a
cooperative approach to commissioning a rig.
...
Dr Colin B. Phipps
Chairman |
