Falklands : DESIRE PETROLEUM PRESENTS 2008 REPORT TO STANLEY SHAREHOLDERS
Submitted by Falkland Islands News Network (Juanita Brock) 06.05.2009 (Article Archived on 20.05.2009)
A shareholders’ meeting on behalf of Desire Petroleum was held at the Chamber of Commerce on Tuesday, 05 May 2009. Stephen Phipps welcomed shareholders to the meeting and Ian Duncan presented the 2008 report.
Photo (c) J. Brock (FINN) Ian Duncan, Left and Stephen Phipps, Right presented 2008 results to shareholders.
DESIRE PETROLEUM PRESENTS 2008 REPORT TO STANLEY SHAREHOLDERS
Ian Duncan, Left and Stephen Phipps, Right presented 2008 results to shareholders.
By J. Brock (FINN)
A shareholders’ meeting on behalf of Desire Petroleum was held at the Chamber of Commerce on Tuesday, 05 May 2009. Colin Phipps welcomed shareholders to the meeting and Ian Duncan presented the 2008 report.
Mr Duncan said that Desire’s licence would run out in 2013but if hydrocarbons were discovered it could last longer. Desire plans to drill 4 exploratory wells but will only pay towards two of them. Desire have already purchased well heads and other necessary equipment but have $40 Million to spend on exploration. Arcadia will pay for 100% of the Ann prospect and 85% of the Liz prospect as well as 100% of the Alpha prospect. Desire will pay for 100% of the Dawn respect and 15% of the Liz prospect.
Prospects to be drilled will be through or close to mature, world-class source rock.
It is hoped that a semi-submersible rig can be found to do exploratory drilling. Ian Duncan has pointed out that the longer a rig has to travel, the more expensive it will be. However, getting one from Brazil is not likely due to prioritising and tightness of the market. Perhaps one can be found in South Africa.
Mr Duncan went on to say that challenges include remoteness, willingness of contractors and support.
Stephen Phipps concluded that the Falklands are a major oil province but that we should hope for low oil prices so that the rig market won’t tighten up again. He concluded that while the Companies are down here drilling, they might as well stay as it was not cost-effective and would take a lot of time should only one exploratory well be drilled and abandoned.
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