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3D Completed: Seismic Identifies Falklands Oil Prospects

3D COMPLETED SEISMIC IDENTIFIES FALKLANDS OIL PROSPECTS

 

By J. Brock (FINN)

 

The Board of Desire Petroleum has announced that the interpretation of both the fast track and final processed data 3D seismic survey over Tranches C and D has been completed.  They further announce that in addition to the new 3D data, the previously acquired 2D data was incorporated in the interpretation where no 3D data was available.

 

Analysis included in the interpretation covers various seismic attributes as well as geological study.  Excellent in quality, the data and the new interpretation largely confirms a new geological model proposed by the Company.  Other new prospects have been identified and are associated, in particular, with well-defined alluvial deltas and fans.

 

Data interpreted shows that within the area covered by the 3D seismic, a number of prospects have been identified.  Of these, six are large enough to contain economic accumulations of oil in the range of 100 – 1000million barrels.  According to information received from Desire Petroleum Plc, these six areas are in addition to prospects already identified by 2D seismic outside the area covered by the 3D survey.

 

Now for more features!  The 3D seismic has shown the presence of Direct Hydrocarbon indicators (DHI’s).  In particular, there are considerable indications of the presence of natural gas as well as oil.  Considerable volumes of gas were encountered by the first well drilled by Shell in Tranche B but the well was not tested because, at the time, the value of gas was too low to be economically producible in an area as remote from markets as the North Falkland Basin.  However, since that time, the price of gas (along with oil) has risen sharply and new technology such as gas to liquid (GLT) in which diesel fuel is produced from natural gas, have been developed.

 

This being so, the Board commissioned a scooping study on the economics of gas production, which has shown that, at prices well below the current levels, gas accumulations would be economic, given a field equivalent size to a 300million-barrell field.  Several of the prospects identified to date match this requirement and it follows that natural gas can now be added to the economic prospectivity of the North Falkland Basin.

 

Several parties interested in farming into Tranches C and D are now examining the interpretation and conducting interpretations of their own.  It is hoped that these will lead Desire Petroleum to conclude an successful farm-out.  “This will lead on to exploration drilling of the most attractive prospects,” said Dr. Colin Phipps of Desire Petroleum.



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