Articles
Diciembre 2010
Disappointing well - Desire says no oil discovery in Malvinas Islands
Source: The Buenos Aires Herald
Oil explorer Desire Petroleum said it did not make an oil discovery in the Malvinas Islands, days after it said it believed it had, denting hopes that the territory will become a major new oil province. In fact, the oil Desire discovered was classified as "bad quality" material.
The company said that additional analysis of data from a key well in the Islands did not support initial indications of an oil discovery, almost halving the value of its shares.
"This is a major blow to Desire and the prospectivity of the North Malvinas Basin," said Evolution analyst David Farrell.
Last week, Desire said it believed it had made the second ever oil discovery at its Rachel North well in the North Malvinas Basin, after Rockhopper, another explorer, made the first at its Sea Lion prospect in May, raising hopes of further finds in the South Atlantic islands.
Desire's disappointing well at Rachel, however, is the latest setback to temper excitement generated by the controversial exploration of the Malvinas, to which Argentina objects.
"This is a major blow to Desire and the prospectivity of the North Malvinas Basin," said Evolution analyst David Farrell.
Last week, Desire said it believed it had made the second ever oil discovery at its Rachel North well in the North Malvinas Basin, after Rockhopper, another explorer, made the first at its Sea Lion prospect in May, raising hopes of further finds in the South Atlantic islands.
Desire's disappointing well at Rachel, however, is the latest setback to temper excitement generated by the controversial exploration of the Malvinas, to which Argentina objects.
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Buenos Aires l Argentina | All rights reserved
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