Oil explorer Desire Petroleum said yesterday it was now focused on finding extra funds to develop its Falklands discoveries.
The comment came as it announced the findings of a report which it said confirmed the potential for its oil production ambitions in the remote and disputed Falklands region.
Aberdeen-based energy consultant Senergy said the chances of a commercial development at Desire’s Sea Lion complex in the North Falkland Basin was estimated to be 80%, although, the chances at its Liz gas-condensate discovery were 25%.
Desire chairman Stephen Phipps said: “This competent person’s report confirms our view that the Desire licences have excellent remaining exploration potential. Our immediate priority will be to promote our extensive prospect inventory and to attract further investment into our licences.”
Desire also said it had 41 oil prospects and four gas prospects, 12 of which had best-case prospective resources of more than 100million barrels of “stock tank oil”.
Oil exploration by UK companies in the area has triggered anger in Argentina, which claims sovereignty over the islands it knows as the Malvinas. It has called the drilling there “illicit” and threatened legal action.
Fellow explorer Rockhopper signed up Premier Oil earlier this year to help it to fund the costs of developing its own discovery at Sea Lion.