Desire Petroleum issues new CPR on Elaine and Isobel prospects

North Falklands basin oil explorer, Desire Petroleum, today issued a competent person’s report (CPR) update on the Elaine and Isobel prospects prepared by Senergy.

This CPR covers the interpretation results from the 2010/2011 merged 3D seismic data over the Elaine and Isobel prospects which are located wholly within the PL004a licence in which Desire has a 92.5% interest. Best case un-risked prospective recoverable oil resources net to Desire are estimated to be 312 million barrels with a chance of success (COS) of 30%.

At 23p Desire has a market cap of around £77 million and all now depends on a farm in deal to try to ascertain whether the seismic data is right in predicting a potentially significant oil discovery. After the drilling disappointments of 2011, the company has a lot to do to repair its battered reputation with investors. Many private investors lost significant amounts of money with confused RNS releases seemingly the norm as the Ocean Guardian rig explored its acreage.

For now, the focus is on Falkland Oil and Gas following its successful farm in deals with Noble and Edison and with drilling NOW proceeding on its Loligo prospect in the South Falklands basin. Though Rockhoppers’s Sea Lion discovery was transformational for the Falklands Islands, the risk profile of the region meant that only Premier Oil stepped up to the plate to develop the field and at a price which has seen its share price languishing versus the highs of 2010.

Investors in Borders and Southern are also awaiting the gas condensate analysis results from the Darwin East drill. A second major find after Sea Lion is badly needed to cement the Falklands Islands as a significant oil province.

Contrarian investor UK