MercoPress. South Atlantic News Agency

Desire’s un-risked oil prospect in Falklands’ waters over 3 billion barrels

The CPR covers Desire’s top ten prospects

Desire Petroleum prospective un-risked recoverable resources net in Falkland Islands waters are over 3 billion barrels of oil in the company’s ten top prospects according to the recently completed Competent Person’s Report, CPR and released this week.

More over at 50 US dollars the barrel price, the minimum economic threshold can be estimated in a 56 million barrel recoverable field.

Desire which has focused its exploration efforts in the North Falkland Basin commissioned a CPR from Senergy Limited from the UK, which is considered a major independent consultancy specializing in reservoir engineering, geology, geophysics and petroleum economics.

Senergy evaluated Desire's top ten prospects namely the Liz, Ann, Alpha, Dawn, Jacinta, Beth, Ninky, Rachel, Helen and Pam prospects and the key conclusions follow: a) The mean, net to Desire, un-risked, prospective recoverable resources in these ten prospects is over 3 billion barrels; b) The mean, gross, un-risked prospective recoverable resources in these ten prospects is over 4.6 billion barrels; c) The mean, gross, un-risked prospect size ranges from 122 million barrels recoverable (Ninky) to 1.631 million barrels recoverable (Alpha); d) The hydrocarbon type in the Southern prospects could be oil or gas but on balance are considered more likely to be oil and e) Fourteen different play types have been identified, eight in the north and six in the south, of which, only three were partially tested in the 1998 drilling campaign; f) At 50 US dollars/barrel oil price, the minimum economic threshold is a 56 million barrel recoverable field.

“It is particularly pleasing to have our own work on the prospectivity of the North Falklands Basin, and of our own prospects, endorsed by a well respected independent energy consultant. We look forward with great excitement to the forthcoming drilling campaign” said Stephen Phipps, Chairman of Desire commenting on the CPR results.