The Falklands: Interview with Dr. Colin Phipps of Desire Petroleum
(A Report For Calling the Falklands by David Wood 15/09/98)
Desire buys into another Falklands Tranche
Given that there have been no positive finds of oil reported around the Falklands so far, the prospects of finding any don't look so good. Despite that, Desire has linked up with IPC's sister company, Sodra to buy a 12.5% interest in tranche "F" in the North Falklands Basin. That's in addition to its current holdings of 25% in Tranches "C" and "D" and 100% of Tranches "I" and "L." Andrea Kennedy asked Colin Phipps of Desire why they bought into Tranche "F" now.
[My own comment: It is very ignorant to say that the prospects of finding oil don't look so good because no positive finds have been reported so far. Of course the prospects look much better now than before the drillings started earlier this year. Positive finds HAVE been reported! Desire linked up with Sodra BECAUSE OF positive indications, not DESPITE bad prospects. Argentine influence on the journalist?]
Colin Phipps: It was a tranche that we liked very much initially and we did apply for it but didn't get it. So, I've always been keen on "F." With the development of source rocks to the North and the general tilt upwards to the South that we see in the Falklands, if we do get good reservoirs developed, then we are likely to find oilfields down in the South. At least that's the theory at the present time. So, that's really one reason why we have gone into "F." The other reason is that I want to spread the portfolio for Desire shareholders so that we have broad interests in a lot of tranches because that gives the best chance for success and since Desire is actually a pure exploration company,, as far as our shareholders are concerned, we are giving them the maximum opportunity by taking this additional interest.
Andrea Kennedy: Now, you're joining up with Sodra for this particular tranche. Can you tell us a little bit about Sodra?
CP sodra is a new company but it essentially stems from the old IPC, Sands companies which were granted Tranche "F" in the first place. Both of these companies form part of the Lundine (phonetic spelling) Group and earlier this year they merged together into a new company called Lundine Oil and Adolf Lundine, who is the President of Lundine Oil raised money on the Swedish Stock Exchange and formed Sodra, into which the licences were put. Sodra is still managed by the Lundine Company and is, if you like, a sort of daughter companies. Although it's a new name, it's still very much part of the same group.
AK Now, both Sodra and Desire are on the Alternative Investment market. Do you see that as effecting each others' share prices at all, the fact that you are now going to be working together?
CP Well, it's likely to, obviously, although Desire, of course, has much greater spread of interest than do Sodra. Sodra only have Tranche "F" and, of course Desire has interests in Tranches "C," "D," "F," "I," and "L" so we have a lot more interests but, yes, I think that it's likely that both companies will be followed quite closely.
AC Now, you're hoping to start drilling this week. How long do you think it will be before you have an answer? How many weeks are you planning to be drilling for?
CP Hopefully the well will take four to five weeks to drill. It's not a very deep well like the Shell Well but it is a deeper well than either the Lasmo or the Amerada Wells. Of course now the Borgny Dolphin has had a lot of experience drilling in the area so we would expect more efficiency and that the well be drilled a little more speedily perhaps than were the Amerada and the Lasmo wells. Hopefully we dill do it in four to five weeks. I understand at the moment the weather is getting better and that we should be having the rig in position sometime possibly today and hopefully will start the well later this week.
sartma.com |
