OilVoice - Senergy Report For Desire Reviews Oil and Gas Prospects in the North Falkland Basin

Senergy Report For Desire Reviews Oil and Gas Prospects in the North Falkland Basin

Sunday, October 11, 2009

- Over 3 billion barrels of unrisked prospective recoverable resources net to Desire in top ten prospects.

Desire Petroleum, the AIM listed exploration company focusing on the North Falkland Basin announces the conclusions of a recently completed Competent Person's Report (CPR) on the Company's prospects.

The CPR was prepared by Senergy (GB) Limited, a major independent consultancy specialising in reservoir engineering, geology, geophysics and petroleum economics. Desire commissioned Senergy (GB) Limited to produce the CPR to confirm Desire's firmly held belief in both the prospectivity of the North Falkland Basin and particularly the robustness of the Company's oil and gas prospects. Senergy evaluated Desire's top ten prospects namely the Liz, Ann, Alpha, Dawn, Jacinta, Beth, Ninky, Rachel, Helen and Pam prospects.

The key conclusions are as follows:
- The mean, net to Desire, unrisked, prospective recoverable resources in these ten prospects is over 3 billion barrels.
- The mean, gross, unrisked prospective recoverable resources in these ten prospects is over 4.6 billion barrels.
- The mean, gross, unrisked prospect size ranges from 122 million barrels recoverable (Ninky) to 1,631 million barrels recoverable (Alpha).
- The hydrocarbon type in the Southern prospects could be oil or gas but on balance are considered more likely to be oil.
- 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.
- At US $ 50/barrel oil price, the minimum economic threshold is a 56 million barrel recoverable field.

Commenting on the CPR, Stephen Phipps, Chairman of Desire said:
"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."