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Desire Petroleum PLC (DES)

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Monday 18 April, 2011

Desire Petroleum PLC

Operational Update

RNS Number : 0588F
Desire Petroleum PLC
18 April 2011
 



For immediate release                                                                                                                                                     18 April 2011

 

Ninky Well and 3D Seismic Operational Update

14/15-3 well to be plugged and abandoned with oil shows

Desire Petroleum plc (AIM:DES), the company wholly focussed on the North Falkland Basin, advises that the 14/15-3 well on the Ninky prospect has reached a total depth of 2,620 metres in the Barremian source rock interval.

Ninky Well Results

Based on drilling and wireline logging, the well encountered two sand-prone sections in the Upper and Middle F2 intervals, which were the primary targets (2323 metres to 2334 metres and 2365 metres to 2389 metres).  The sands have a combined gross thickness of 35 metres and oil shows were encountered throughout both intervals while drilling.  The reservoir quality is generally poor having only 5.6 metres of net reservoir with an average porosity of 13%.  A thin interval of around 1.2 metres at the top of the Middle F2 zone is interpreted to be oil bearing from log analysis.

Wireline formation pressure measurements were attempted, but no valid pressures were obtained, indicating that the reservoirs are low permeability at this location. As a result no wireline sampling was attempted. The depositional model suggests these sands are sourced from the east and therefore better reservoir quality may be expected downdip.  In addition, there are indications from seismic of further sands along strike on the Ninky structural high, which were not penetrated in this well.  These opportunities will be evaluated with the new 3D seismic as part of Desire's prospect inventory update.

Operations on the Ninky well will now be completed and the well will be plugged and abandoned.

3D Seismic Update

The 3D seismic operations are ongoing with the Polarcus Nadia vessel, in a joint programme with Rockhopper.  To date, approximately 1485 km2 of data have been acquired in the Desire operated part of the programme.  Desire anticipates that a further 195 km2 will be acquired to complete the operated programme.  The joint survey is expected to be completed during May.  Processing of the new seismic data is in progress and initial indications are that data quality is good.  Priority areas have been identified in the East Flank play between Ninky and Sea Lion, and over the Ann/Orca South prospect.  The processed data from these priority areas is expected to be available in July.  The full, merged data will be available later in the year, which will provide coverage over the southern part of the East Flank play and the Helen prospect.

Desire remains optimistic that existing prospects can be significantly de-risked using the new seismic data and that new prospects will be identified, particularly within the East Flank play which is widely developed within the Desire operated licences.

 

Stephen Phipps, Chairman of Desire, commented " On completion of the Ninky well Desire will have funds of circa $37 million which, while more than adequate for our share of rig and vessel demobilisation, completion of our 3D seismic acquisition, processing and interpretation plus general working capital needs, is insufficient to drill further wells. Given our continuing confidence that oil will be discovered on Desire's acreage, further wells will need to be drilled and, therefore, once the results of the Ninky well and the 3D seismic have been analysed, we will review all financing options available with the intention of rejoining the drilling campaign later in the year if possible".

 

 

Subsurface support is provided to Desire Petroleum by Senergy (GB) Ltd and the well results reported today are based on the work of the Senergy operations team.

This statement has been approved by Mr Ken Black , Exploration Director of Desire Petroleum plc, who is a member of the Petroleum Exploration Society of Great Britain , with over 30 years experience in petroleum exploration and management.

 

 

For further information please contact:

Desire Petroleum plc

020 7436 0423

Stephen Phipps, Chairman


Dr Ian Duncan, Chief Executive Officer

 




Seymour Pierce Limited

020 7107 8000

Jonathan Wright

 




Buchanan Communications

020 7466 5000

Tim Thompson


Ben Romney


Chris McMahon


 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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