MercoPress. South Atlantic News Agency

Desire Petroleum confident of its Falklands’ portfolio prospects potential

“Polarcus Nadia” is doing 3D seismic surveying over uncovered acreage

Falklands Desire Petroleum has said the past 12 months had proved an “energetic” period for the company with the information gathered leading to believe that the East Flank Play Fairway has a great deal of potential.

The company yesterday announced its preliminary results for the twelve months ended 31st December 2010 which showed resources available at the year end were in excess of 100 million US dollars.

Over the past year, Desire has drilled five wells on prospects in the North Falkland Basin and said the majority of efforts have been concentrated on the East Flank Play Fairway where the Sea Lion discovery was made by fellow explorer Rockhopper Exploration.

Since drilling the Liz well in April, the company has drilled a further four wells on its prospects at Rachel, Rachel sidetrack, Rachel North and on the Dawn/Jacinta prospect.

However, despite good oil shows and good quality sands being present at the Rachel sidetrack and Rachel North wells, both proved ultimately to be unsuccessful.

Nevertheless, Desire said it remained very much its belief that further discoveries will made on the East Flank Play Fairway. For this purpose it has commissioned the ‘Polarcus Nadia’ to shoot 3D seismic over previously uncovered acreage in the North Falklands Basin, particularly on the East Flank Play Fairway.

Chairman Stephen Phipps said that the geological information gathered from these wells combined with new seismic data is expected to have a significant impact on the prospect portfolio.

“The past twelve months have been extremely energetic for Desire Petroleum. We have drilled five wells on prospects and have commissioned 3D seismic over previously uncovered acreage. The geological information gathered from these wells combined with the new seismic data is expected to have a significant impact on the prospect portfolio. It is our belief that the East Flank Play Fairway has a great deal of potential, and it is with this in mind that we are currently drilling the Ninky exploration well” said CEO Stephen Phipps.

Once the Ninky prospect has been completed the company will have drilled the six wells for which funds were raised in late 2009 and early 2010.

On a financial note, the company's losses for the period came in at 3.4 million USD for the year ended 31 December, down from 3.76 million USD in 2009.