Desire Petroleum (AIM: DES) continues interpretation of merged 3D seismic data acquired in 2010-2011 in the offshore North Falkland basin.
Two of the prospects, Elaine and Isobel, are both in license PL004a where Desire has a 92.5% interest. The Elaine and Isobel fans are developed in the southeast area of the basin within the basal part of the F sequence and are similar to the Seal Lion (discovery) fans further north. Senergy estimated unrisked prospective recoverable oil net to Desire of up to 312 MMbbl, comparable to the size of the Sea Lion, with a geological chance of success of 30%.
Subject to Executive Council approval in the Falkland Islands, the company expects to gain extensions to its northern licenses PL003 (Tranche C), PL004 (Tranche D), and PL005 (Tranche F) under the existing Phase 2 work program. This should help the company attract a farm-out partner.
As for Desire’s southern licenses PL006 (Tranche I) and PL007 (Tranche L), studies following evaluation of the Dawn/Jacinta well and the Rockhopper Exploration Ernest well suggest this is an area of lower prospectivity and higher risk.
Therefore, Desire expects to relinquish much or all of the acreage. PL034, containing the Alpha prospect in which Desire had a 20% interest, has already been relinquished by operator Denholm.