latest oil price news13 Sep 2009 18:48
Desire Petroleum (ticker: DES) has announced it has exchanged a letter of intent with Diamond Offshore Drilling (UK) Ltd. This is to use Diamond’s Ocean Guardian drilling unit to undertake a four well minimum drilling campaign in the North Falkland Basin.
“The Ocean Guardian is currently in the North Sea and following a programme of shipyard work will mobilise in November 2009. Projected arrival in Falkland waters is early February 2010. Desire has options to drill a further four wells for itself and or its partners. Further details will be announced after contract completion which is subject to various approvals.”
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Sign up to recieve The Right Side here... Privacy Policy That news has caused a surge in the share prices of all the small oil explorers active in the Falklands area. Desire (DES) is up 34%, Falkland Oil & Gas (FOGL) 16%, Falkland Island Holdings (FKL) +19% and Rockhopper Exploration (RKH) +36%.
Of course, there’s a lot to do yet. But this is a major development in the Falklands oil story. It’s a story that isn’t that new. These huge oil fields were first discovered in the mid 1970s by American geologists