Falklands’ exploration company Desire unable to reach drilling target depth

Monday, November 1st 2010 - 16:39 UTC

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The Ocean Guardian oil drilling rig in Falklands’ waters

Falkland Islands oil explorer Desire Petroleum (DES.L) said a closely-watched sidetrack well on its Rachel prospect in the Falkland Islands was unable to reach target depth and it would clean the hole out before trying again.

The company said last month that the original Rachel well (14/15-1Z) in the North Falkland basin did not find oil but that it was going to drill a sidetrack well as it had identified a more prospective zone nearby.

“Due to well-bore stability issues through the deviated section of the well-bore (forty degrees’ hole inclination) it was not possible to reach the target depths in the first wire-line logging run. The hole is now being cleaned out prior to making a further attempt”, said the official release from the exploration company.

The Ocean Guardian drilling rig is targeting a total depth of 3,418 meters on the sidetrack well, which is being drilled to evaluate the prospectivity of a 103-meter sandstone identified down-dip from the original Rachel well.

Rockhopper (RKH.L), another Falkland Islands-focused explorer, owns a 7.5% stake in the licence where the Rachel prospect is located, with Desire owning the balance.

Shares in Desire, which last week rose as much as 78% in one day on speculation the sidetrack had found oil, opened down 12.1% before recovering to trade down 1.3 percent at 95.75 pence.

Categories: Energy & Oil, Falkland Islands.

Tags: Desire Petroleum.

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Think
After the news today,this “Company” seems to be the best ally Argentina could dream to have in the South Atlantic........

If things end as I “Think” they will ....., they will leave around 20.000 British private investors with a “very bad taste in their mouths”....

Go Go Go.... DESPAIR PETROLEUM
Nov 02nd, 2010 - 07:30 am 0
Alexei
If Argentina expended a fraction of the time and energy it does whining and bitching, on exploring for oil in its own territorial waters; maybe Argentines might have something to be happy about, in thier apparently miserable, joyless lives.
Nov 02nd, 2010 - 10:15 am 0
Beef
Think - Just arrived back in Blighty. Take a look at the market reaction before giving a knee jerk response. From what they have seen they are convinced enough to re-locate the OG on a more optimum position over Rachel. In other words the indications show this has the potential to be a significant oil find. Time will tell but there is oil there. Is it commercial? Neither you or I know, yet!
Nov 02nd, 2010 - 12:59 pm 0

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