Desire Petroleum upgrades potential prospects with new CPR

Falklands oil explorer, Desire Petroleum,  today published a new competent person’s report (CPR) by energy consultancy Senergy (I hope they can tell the difference between oil & water!!) which assessed the Liz gas condensate discovery, the parts of the Sea Lion complex that Desire has interests in, as well as earlier stage exploration prospects.  The CPR was based on the complete prospect inventory based on the final interpretation of the 2012 merged 3D seismic survey as well as an assessment of the 14/19-1 Liz gas condensate discovery.

The report says Desire now has 41 oil prospects and four gas prospects, 12 of which had best case prospective resources of over 100 million barrels of oil.  It also estimates the chance of commercial development at its Sea Lion complex to be 80 per cent, but just 25 per cent for the gas condensate discovery at its Liz complex.

New contingent resources assigned to the 14/19-1 Liz gas condensate discovery, increasing Best Case contingent resources by 317 Bscf and 10 MMstb to 495 Bscf and 95 MMstb, net to Desire. This represents an increase of 178% and 12% over the existing net Best Case contingent resources held in the  Sea Lion Complex of 178 Bscf and 85 MMstb. There is now a ‘best case’ prospective resource of 2.45 billion barrels of oil and 274 billion cubic feet of gas net to Desire.

After Premier’s farm in to Rockhopper’s acreage, Desire is hopeful they can attract funds to fully appraise their prospects but this may remain a major challenge after its poor success rate in its previous drilling campaign. Plenty for Chairman Stephen Phipps to do to bring Desire back to life.

Contrarian investor UK