Desire Petroleum discovery contains mostly water, not oil

Desire Petroleum has said that the key drilling prospect off the Falkland Islands contained mostly water, not oil. Last week, the company said that it was optimistic that the well contained hydrocarbons, but further tests of the Rachel North well in the North Falkland basin contained mostly water.

Upon first inspection, Desire Petroleum believed it had made the only second ever oil discovery of the North Falkland basin. The first was made by Rockhopper at its Sea Lion prospect in May.

Desire Petroleum released a statement last week saying, "Preliminary data collected indicate that this well is an oil discovery.” But on Monday 6th December, the company said that “sampling of the main sand has shown that the hydrocarbons are residual and that the mobile fluid is water,” further adding that the well will "be plugged and abandoned".

Source: BBC News

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Desire Petroleum finds oil off the Falkland Islands

Desire Petroleum has discovered oil off the Falkland Islands in the South Atlantic. The company said it would have to carry out further tests in order to determine the significance of the new discovery, a second such find this year. The first, by another British exploration company, Rockhopper, was made in the same area in May.

Chairman of Desire Stephen Phipps said the find in the North Falkland basin was "highly encouraging." It is yet unclear whether or not the find will prove commercially viable, but Desire Petroleum says it expects to find further oil fields in the area.

Resumption of oil exploration around the Falklands has revived a long running dispute between Britain and Argentina about the sovereignty over the islands. In February, Argentina announced new controls on shipping to the Falklands. It has also raised the issue at the UN and called for support for its sovereignty claim among Latin American countries.

Britain says there is no doubt over its sovereignty over the Falkland's territory, as most of the population residing there is of British descent.

Source: BBC News

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