MercoPress. South Atlantic News Agency
Desire Petroleum upbeat report
Desire Petroleum, one of several oil companies with oil exploration licence off-shore Falkland Islands, has published its preliminary results for 2003 and outlined its seismic research which took place this austral summer in the North Falkland Basin.
In his annual report, Chairman of Desire, Dr Colin Phipps updated shareholders on the progress of a 3D seismic survey carried out by Fugro Geoteam A/S, over some of the larger prospects for oil in Desire's tranches C and D in the North Falkland Basin.
Dr Phipps said Fugro Geoteam A/S were contracted, "...on a fixed-price turnkey basis," to acquire the 3D seismic and the survey was successfully completed on April 1, 2004, with a final total of 804 sq. km.
He said the quality of data collected is good and, "...processing has already begun at the facilities of Robertson Research International Ltd."
He added, "The volume of data is very considerable and processing is likely to take until September of this year, at which time a detailed geological interpretation of the survey will be made. "The interpretation is expected to take about two/three months to complete. The well locations for the next round of drilling will be selected on the basis of this interpretation."
Dr Phipps said future drilling remains dependent upon a successful farm-out and he was pleased to report a "significant increase" in interest in the North Falkland Basin by the Oil Industry.
He said, "The continuing strength of the oil price, together with the much-publicised failure of oil companies to replace their reserves, especially from traditional areas such as the North Sea, have led to renewed interest in frontier exploration in areas such as the Falkland Islands.
"A number of companies have signed confidentiality agreements with Desire, in order to interpret both the existing 2D and the new 3D seismic data. "Discussions with these companies will take place in parallel with the 3D processing and interpretation with a view to agreeing a farm-out drilling programme with a partner, or partners, to be initiated in 2005 dependent upon rig availability."
The Desire Chairman paid tribute to dedication of his colleagues on the company's board. He commended, "...their enthusiastic commitment to its future as demonstrated by their willingness, via the Placing and Open Offer, to participate in that future by reinvesting their fees in the Company's shares.
"The Company's success in maintaining a low level of overheads is due, in no small measure, to the time and effort spent on the Company's affairs by my colleagues on the Board; time and effort not adequately recognised by their compensation.
"As in past years, therefore, it is intended to remedy this defect by means of the award of share options."
Source: Penguin News
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