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Desire Petroleum confirms Falklands drilling schedule

02 February 2010

Desire Petroleum, the oil and gas group at the centre of what promises to be a frenzy of drilling activity around the Falkland Islands in the coming months, has confirmed more details about its planned schedule.

The North Falkland Basin exploration group, which last September secured the services of the Ocean Guardian drilling rig, said it had formally assigned two option wells to its partner, and fellow AIM listed company in the region, Rockhopper Exploration.

The Ocean Guardian is expected to be in position mid February 2010 to spud the first well of the campaign on the Liz prospect, which is located in Desire's Tranche C acreage. Here, Desire has a 92.5% stake with Rockhopper holding the balance of 7.5%.

Following the Liz well the Ocean Guardian will then be allocated to Rockhopper to drill its 100%-held Sea Lion and Ernest prospects.

Advanced discussions are ongoing with mining giant BHP Billiton which may lead to BHP taking an early drilling slot for a well that it is planning with its partner, Falkland Oil and Gas.

As a result, Desire's second well in the campaign will be the 4th or 5th well in the sequence of the drilling programme. The order of later Desire wells will depend upon the results of the Liz, Sea Lion and Ernest wells.






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