16 Aug 2012 07:00
For Immediate Release | 16 August 2012 |
Desire Petroleum plc("Desire" or the "Company")
Competent Person's Report Update on the Elaine and Isobel Prospects
Desire Petroleum plc (AIM:DES), the exploration company wholly focused on the North Falkland Basin, is pleased to announce the findings of a recently completed competent person's report (CPR) update on the Elaine and Isobel prospects prepared by Senergy (GB) Limited (Senergy).
This CPR update covers the interpretation results from the 2010/2011 merged 3D seismic data over the Elaine and Isobel prospects. A CPR covering the full prospect inventory from the merged 3D seismic data will be available in Q4 2012. The Elaine and Isobel prospects are located wholly within the PL004a licence in which Desire has a 92.5% interest.
Highlights
·; Best case un-risked prospective recoverable oil resources net to Desire are estimated to be 312 MMstb
·; The Elaine and Isobel fans are developed in the southeast of the basin within the basal part of the F sequence and are similar to the Sea Lion fans further north
·; The seismic expression indicates a thick, sand-prone interval inter-bedded with mature oil source rock and combined structural/stratigraphic traps mapped on the downthrown side of the basin-bounding fault system
·; The volumetric assessment of the total Elaine and Isobel prospect area indicates gross prospective resources which are comparable with the size of the Sea Lion field and with a geological chance of success of 30%
Commenting on the CPR update, Stephen Phipps, Chairman of Desire, said:
"We are delighted that our prospect inventory continues to strengthen and that some of the best remaining potential in the North Falkland Basin is within licence PL004 in which Desire has a strong equity position. The Elaine and Isobel prospects are very attractive drilling targets, particularly as the basin moves into a new phase of activity. The planned development of the Sea Lion discovery demonstrates the commerciality of major discoveries in the basin and we are optimistic that the Elaine and Isobel prospects can deliver significant value for our investors. As our prospect inventory matures, we will be seeking industry partners to participate in further exploration of our licences and the quality of prospects like Elaine and Isobel provides a strong platform for success."
The CPR update was prepared by Senergy, a major independent consultancy specialising in reservoir engineering, geology, geophysics and petroleum economics. Senergy have used all available information and interpretations supplied by Desire. The CPR update, including a glossary of key terms, can be downloaded from the Desire website: www.desireplc.co.uk. A full CPR covering all of the Company's prospect inventory and discoveries will be issued in Q4 2012.
The gross prospective resources and net to Desire prospective resources for the Elaine/Isobel prospects, as extracted from the CPR update, are shown in the tables below:
Un-Risked Prospective Recoverable Resources Gross 1(MMstb) | ||||
Prospect: Reservoir2 | Low3 | Best3 | High3 | Risk Factor or COS % |
Elaine North | 8.4 | 26.1 | 48.3 | 30 |
Elaine South | 23.0 | 106.0 | 212.0 | 30 |
Isobel | 45.7 | 205.0 | 408 | 30 |
Total4 | 146 | 337 | 566 | |
Un-Risked Prospective Recoverable Resources Net5 to Desire (MMstb) | ||||
Prospect: Reservoir2 | Low3 | Best3 | High3 | Risk Factor or COS % |
Elaine North | 7.7 | 24.1 | 44.7 | 30 |
Elaine South | 21.3 | 98.1 | 196.1 | 30 |
Isobel | 42.3 | 189.6 | 377.4 | 30 |
Total4 | 135 | 312 | 524 | |
Notes to Tables:
1Gross: the entire on block volumes.
2The reservoir objectives are Lower Cretaceous Barremian F3 early post-rift sandstones for all prospects.
3The quoted Low, Best and High values are derived from the 90% probability (P90), Mean and 10% probability (P10) respectively, from probabilistic estimates of the STOIIP size distribution generated using a "Monte Carlo" statistical approach.
4Note that totals were generated from probabilistic consolidation (not from summing the amounts in the individual reservoirs)
5The amounts net attributable to Desire according to net equity interest in the licence.
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 and who is a Qualified Person in accordance with the guidance note for Mining, Oil & Gas Companies issued by the London Stock Exchange in respect of AIM Companies.
This statement has been approved by Senergy (GB) Limited.
For further information please contact:
Desire Petroleum plc | 020 7436 0423 |
Stephen Phipps, Chairman | |
Dr Ian Duncan, Chief Executive Officer | |
Peel Hunt LLP | 020 7418 8900 |
Richard Crichton | |
Andy Crossley | |
Buchanan | 020 7466 5000 |
Ben Romney | |
Tim Thompson |
Glossary
Variable | Meaning |
3D | Three dimensional referring to seismic data |
Best Estimate | An estimate representing the best technical assessment of projected volumes based on the mean value of all possible outcomes. |
COS | Risk factor or exploration or geological chance of success. The probability, typically expressed as a percentage, that a given outcome will occur. |
Mean | The arithmetic average of a set of values |
MMstb | Millions of barrels of stock tank oil |
P90 | The probability that a stated volume will be equalled or exceeded. In this example a 90% chance that the actual volume will be greater than or equal to that stated. |
Prospective Resources | Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have an associated risk factor or COS |