Strong potential in Desire Falklands acreage, report claims

Senergy has issued a competent person’s report (CPR) concerning Desire Petroleum’s offshore acreage in the North Falkland basin.

Oct 31st, 2011

Offshore staff

LONDONSenergy has issued a competent person’s report (CPR) concerning Desire Petroleum’s offshore acreage in the North Falkland basin.

It covers 40% of the company’s northern licenses Tranches C, D and F, and is focussed on areas of fully processed 3D data covering the northern part of Tranche D (PL004) and the Ann prospect sub-area within Tranche C (PL003).

Senergy evaluated Desire’s leading prospects in the northern part of PL004, i.e. the Sea Lion Extension, Casper West, Casper East, Shona West, Shona East, Beverley, Jayne and Catriona, and the Ann/Orca South prospect in the Ann sub-area.

The exercise took into account the results of Rockhopper Exploration’s recently completed 14/10-8 appraisal well to the north of the eastern part of PL004, and of Desire’s revised equity interests in PL004 (Area 1 and Area 2) following a recent farm-out to Rockhopper.

Main conclusions of the CPR include: 

• Potential volumes in the range 638-1,207 MMbbl 
• Minimum economic threshold (at NPV 10%) with an oil price of $85/bbl of 43 MMbbl recoverable for a standalone development and 10MM bbl recoverable for a subsea tie back development 
• Prospect sizes in the range 15-132 MMbbl, with an average prospect size of 71 MMbbl 
• Prospects include a possible extension of Sea Lion with around 59 MMbbl of potential reserves, which will be targeted by the Rockhopper Area 1 farm-out well 
• Farm-out Area 2, operated by Desire, includes the Beverley and Jayne prospects with potential for 64 MMbbl and 131 MMbbl in multiple targets 
• Many of the East Flank prospects within 10 km (6.2 mi) of the Sea Lion development area 
• The Ann/Orca South prospect could hold 132 MMbbl.

As for the semisub Ocean Guardian, which has drilled all the wells in the current offshore Falklands campaign, contractor Diamond Offshore Drilling is in discussions with a third party which could lead to the rig leaving the Falkland Islands in 1Q 2012.

10/31/2011

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