Desire Petroleum finds a farm-in partner
25 February 2008
Desire Petroleum plc has announced that it has accepted the terms of an offer from a significant party to farm-in to three of its eighteen exploration prospects in the North Falkland Basin.
Desire will be carried for the cost of two wells and the mobilisation and demobilisation of a rig to the Islands. The statement did not say what percentage interest in the three prospects Desire would be giving up.
The terms of the farm-in have not been disclosed as the deal is subject to certain awards and approvals by the Falkland Islands Government which are being applied for.
The statement added that at current rig rates, in addition to the two farm-in wells Desire has sufficient resources to be able to drill two wells for its own account in the North Falkland Basin. A rig has not yet been contracted.
Desire Petroleum and Rockhopper Exploration have interests in the North Falkland Basin while Falkland Oil & Gas and Borders and Southern have interests to the south and east of the Falkland Islands. The current state of play for exploration around the Islands is:
Falkland Oil and Gas announced a farm-out to BHP Billiton last year.
Desire Petroleum have announced a farm-out to an unnamed party today.
Rockhopper Exploration announced last week that it had completed 3D interpretation and was now expecting to embark on a farm-out and/or fundraising process ahead of drilling.
Borders and Southern announced the completion of a 3D seismic survey.
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