TIDMDES
RNS Number : 8490T
Desire Petroleum PLC
13 December 2011
For immediate release 13 December 2011
Desire Petroleum plc
("Desire" or the "Company")
Well 14/15-4 Update
Desire Petroleum plc (AIM:DES) the exploration company wholly focused on the North Falkland Basin notes the announcement made today by Rockhopper Exploration plc ("the Operator") regarding the 14/15-4 well. Desire has a 40% carried interest in this well.
Please click on the below link to view the Operator's full announcement: http://www.rns-pdf.londonstockexchange.com/rns/8490T_-2011-12-13.pdf
It should be noted that Desire's Shona prospect, as mapped in its recently released Competent Persons Report, is referred to in the Rockhopper announcement and below as Casper South.
The Well penetrated multiple reservoir targets: Beverley, Casper South, Casper and Sea Lion Main Complex and was drilled on Rockhopper operated licence PL004b. The Operator earned a 60% interest through the drilling of the Well.
According to the Operator, wireline logging and formation test data indicate the following:
All four targets are hydrocarbon bearing and no water wet sands were observed in the Well.
Highlights
-- Total gross reservoir: 89m (292 ft)
-- Total net pay: 57m (187 ft)
Beverley: Wet Gas Discovery
-- Gross reservoir: 27.5m (90 ft)
-- Net gas pay: 25.8m (85 ft)
-- Net to Gross: 94%
-- Reservoir quality:
-Porosity: Average 22%, Maximum 27%
-Permeability: Average 45mD, Maximum 144mD*
-- No gas water or gas oil contact observed
Casper South: Oil and Wet Gas Discovery
-- Gross reservoir: 24.5m (80 ft)
-- Net oil pay: 11.6m (38 ft)
-- Net gas pay: 8.5m (28 ft)
-- Net to Gross: 83%
-- Reservoir quality:
-- Casper South Gas:
-Porosity: Average 25%, Maximum 30%
-Permeability: Average 212mD, Maximum 1327mD*
-- Casper South Oil:
-Porosity: Average 27%, Maximum 34%
-Permeability: Average 1011mD, Maximum 5872mD*
-- Gas oil contact observed at 2429m mdrkb
-- No oil water contact observed
*NOTE: permeability log data is negatively affected by the presence of gas. The Operator believes that the effective permeability in the Beverley and Casper South gas legs will be significantly higher than measured on the log. Permeability in Beverley is likely to be in the region of 500mD, while permeability in the Casper South gas leg will be similar to those in the Casper South oil leg.
Casper: Successful appraisal well
-- Gross reservoir: 12m (39 ft)
-- Net oil pay: 2.4m (8 ft)
-- Net to Gross: 22%
-- Reservoir quality:
-Porosity: Average 16%, Maximum 24%
-Permeability: Average 33mD, Maximum 71mD
-- No oil water contact observed
Sea Lion Main Complex (SLMC): Successful appraisal well
-- Gross reservoir: 25m (82 ft)
-- Net oil pay: 8m (26 ft)
-- Net to Gross: 32%
-- Reservoir quality:
-Porosity : Average 19%, Maximum 24%
-Permeability: Average 80mD, Maximum 195mD
-- No oil water contact observed
The Well was located approximately 12.1 km to the south west of the 14/10-2 discovery well and 6.3 km to the south of well 14/10-9 and within the area of licence PL004b.
Beverley
The Beverley sand was encountered at 2359m mdrkb. The Well penetrated the Beverley prospect near the crest of the structure and the gross reservoir package of 27m was approximately 10m thicker than prognosed, net gas pay was 25.8m. Reservoir quality is good with average porosity of 22% and average permeability of 44 mD. Analysis of mud logs indicate the gas is likely to be a wet gas. PVT analysis will be required to confirm the GCR. From the observed formation pressure gradients the Operator believes that the gas/oil contact observed in Casper at well 14/10-9 and Casper South at well 14/15-4 is likely to exist in Beverley. As a result the Operator believes Beverley may be oil bearing downdip.
Casper South
The Casper South sand was encountered at 2420m mdrkb. Reservoir quality is good with average porosity of 25%in the gas leg and 27% in the oil leg. Average permeability was 212 mD in the gas leg and 1011 mD in the oil leg. Net gas pay was 8.5m and net oil pay was 11.6m. A gas oil contact was observed at 2429m mdrkb, very close to that observed in well 14/10-9 in Casper. Analysis of mud logs indicate the gas is likely to be a wet gas. PVT analysis will be required to confirm the GCR. Casper South is a separate fan lobe, to the south of and apparently in communication with the Casper fan, which the Operator currently maps to extend over an area of greater than 100km2 with significant down-dip oil potential.
Casper
The Well additionally penetrated the Casper sand some 6.3km to the south of the 14/10-9 Casper Discovery well in a relatively down-dip position and at the very feather edge of the mapped fan lobe. The Casper reservoir was encountered at 2450m mdrkb and is entirely below the gas oil contact observed at well 14/10-9. The Casper reservoir sands are all oil bearing at 14/15-4. The Operator believes well 14/15-4 defines the southernmost limit of Casper with a thin reservoir section of low net to gross sand. The presence of Casper at this location enables the Operator to confirm mapping of this fan lobe to the maximum extent of its seismic expression and increase the volumes currently carried for that prospect. Analysis of mud logs in well 14/10-9 indicates that the gas at Casper is a wet gas. PVT analysis will be required to confirm the GCR.
SLMC
The Well penetrated the SLMC in licence PL004b approximately 12.1km from the 14/10-2 discovery well, 6.3km to the south of well 14/10-9 and 13.8km from the northern most successful appraisal well 14/10-7. The SLMC was encountered at 2474m mdrkb. The Operator believes the Well is close to the southernmost limit of the Sea Lion field and at the outer edge of its former maximum case area. The Well penetrated a section which established the gross thickness of reservoir as mapped. The quality of the reservoir at this outer edge of the fan system was as prognosed with a lesser net to gross and slightly lower porosities than in the main core area of the field. Formation pressure testing established that the oil lies on the same pressure gradient as observed over the rest of the field, and oil samples have been recovered for subsequent PVT analysis.
The Operator will now complete a short offset sidetrack (10m from main well bore) to obtain core in the Beverley, Casper South and SLMC formations. These operations are expected to take 12 days following which the Well will be plugged and abandoned as planned. A further announcement will be issued once coring operations have been completed.
Chairman of Desire Stephen Phipps commented "We are very pleased with this well result. The well has encountered hydrocarbons in the new Beverley and Casper South reservoirs as well as confirming hydrocarbons at the Casper and Sea Lion Main Complex levels. We are particularly excited about the downdip oil potential at both Beverley and Casper South".
For further information please contact:
Desire Petroleum plc 020 7436 0423
Stephen Phipps, Chairman
Dr Ian Duncan, Chief Executive Officer
Seymour Pierce Limited 020 7107 8000
Jonathan Wright/Stewart Dickson, Corporate
Finance
Richard Redmayne / Paul Jewell, Corporate
Broking
Buchanan 020 7466 5000
Ben Romney
Tim Thompson
This information is provided by RNS
The company news service from the London Stock Exchange
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