Desire Petroleum PLC said it plans to raise fresh capital to fund its own share of the 3-D survey in which all shareholders will be offered the opportunity to participate.
In a statement alongside results for the first half to June 30 2003, the group said it is to resume exploration of the North Falkland Basin this winter.
The pretax loss for the first half was 211,000 stg compared with a loss of 346,000 stg. The loss per share was 0.19 pence compared with 0.32 pence.
Desire said a new geological model has been developed which has identified the areas within the Basin, and below the source rock, most likely to contain substantial reservoir rocks and traps for oil. As a consequence, Desire has designed a 1000 sq km, 3D-seismic survey, to be carried out this winter in the company's 100 pct-owned Tranches C and D.
The planned seismic survey follows widespread discussions with potential farm-in partners who have stressed the importance of 3D-seismic in refining the major drilling targets.
The company said the initial drilling campaign in the North Falkland Basin encountered a very thick, lacustrine, source rock which has proved to be the second richest yet discovered world-wide. Calculations indicate that from 60 to 110 billion barrels of oil have been generated and expelled from the mature section of this source rock.
At least one other, deeper, source rock was also encountered.
All six of the wells drilled to date were targeted at structures which proved to be above the source rock but, because the upper, immature, section of the source rock forms an almost complete seal across the whole of the Basin, only oil shows were encountered.
Desire said that, as a result of the world-wide slowdown in offshore drilling activity, the costs of carrying out 3D-seismic surveys have fallen sharply. Desire is taking advantage of these cost reductions and is currently in discussions with several potential contractors.
Potential farmees are also being offered an opportunity to participate in the 3D-survey, although the Desire board said it reserves the option to undertake it alone.
The new geological model for the North Falklands Basin has identified a number of major prospects along the Basin margins, which are below and adjacent to the prolific oil-source rock encountered in the initial drilling campaign.
The board said that at least three of these prospects have the potential to contain recoverable reserves of one billion barrels of oil should suitable reservoir rocks be present.
The company said its current financial resources are sufficient to cover normal operational costs and overheads continue at a very low level.
