Desire strikes oil in Falklands

2nd Dec 2010 07:44

Desire Petroleum has found oil in the treacherous waters off the Falkland Islands, according to preliminary data collected from Rachel North exploration well 14/15-2.The well in the North Falkland Basin reached a total depth of 3,052 metres, and drilling data and other tests indicate the well encountered a 349 metre gross interval of sands and shales with hydrocarbons, of which 57 metres is net pay in multiple zones. It said the thickest zone is 8 metres thick with an average porosity of 20%, while other zones are thinly bedded and lower porosity, but need further analysis to establish reservoir potential. "Desire now intends to complete the wireline logging and wireline sampling programme to obtain more information on the reservoir quality, the hydrocarbon saturations and the fluid type to assess the significance of this discovery," it said Thursday. Chairman Stephen Phipps is understandably upbeat. "It is highly encouraging that the initial results from the Rachel North well endorse both our findings and geological model from the previously drilled Rachel sidetrack well," he said."This discovery combined with Rockhoppers' Sea Lion discovery confirms our belief that the eastern flank play fairway in the North Falkland Basin is highly prospective and that further oil fields will be discovered in this area". Rockhopper has a 7.5% working interest in the Rachel prospect.