15 Oct 2010 07:20
| For immediate release | 15 October 2010 |
Desire Petroleum plc
("Desire" or "the Company")
Drilling Update
Desire Petroleum plc (AIM:DES), the oil and gas company wholly focussed on the North Falkland Basin, advises that the 14/15-1 well on the Rachel prospect has reached a total depth of 2,877 metres. Initial wireline logging shows that no hydrocarbons have been found. However a substantial thickness of sandstone was encountered in the upper part of the target zone, comprising 103m of gross sandstone of which 81m is net reservoir with an average porosity of 23%.
The Rachel well has provided much new valuable data on the distribution of the reservoir targets within the Eastern Flank play and in particular the calibration of the 3D seismic data for sandstone prediction. Our understanding of this play type is rapidly evolving but one of the biggest remaining uncertainties relates to the oil charging mechanism from the mature oil source rock to the fan sandstones. Based on the latest information from this well, potential sandstones have now been identified downdip from the existing location, closer to the mature oil source rock, significantly reducing the oil charge risk. As a result the well will be sidetracked to this location to evaluate the prospectivity. The sidetrack will commence when the present logging operations are complete. The total depth of the sidetrack is planned to be 3,418 metres measured depth (2,970 metres vertical depth) with an offset of circa 1.2 kilometres from the total depth of the original vertical well. The sidetrack will be designated 14/15-1Z and is expected to take 20 days and the Company will make a further announcement upon completion of this sidetrack.
The Rachel well is the first in a likely four well drilling campaign operated by Desire. Following the 14/15-1Z sidetrack it is intended to move the rig to the next location 25/5-1 on the Dawn/Jacinta prospect in the Desire 100% Tranche I licence.
For further information please contact:
| Desire Petroleum plc | 020 7436 0423 |
| Stephen Phipps, Chairman |
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| Dr Ian Duncan, Chief Executive Officer |
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| Seymour Pierce Limited | 020 7107 8000 |
| Jonathan Wright |
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| Buchanan Communications | 020 7466 5000 |
| Ben Romney Tim Thompson |
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DES.L (DES)