Oil & Gas Corporate News
Desire Petroleum (LON:DES) (DES, 20.75p, ? 0.0%) announced the conclusions of a recently completed Competent Person's Report (CPR) on part of the Company's exploration acreage in the North Falkland Basin. The CPR covers only 40% of the Company's northern licences Tranches C, D and F and is focussed on the areas of the fast-tracked fully processed 3D data covering the northern part of Tranche D (PL004) and the Ann prospect sub-area within Tranche C (PL003). 11 prospects have been identified in the area covered by the fast-tracked 3D seismic data, and the Best estimate gross recoverable resources stand at 638 million barrels of oil (MMstb), equating to net recoverable resources of 322 MMstb net to Desire. The geological chance of success (COS) on all prospects ranges from 27% to 52%. The average COS is 35%. Desire also gave an update on the Ocean Guardian drilling rig. Diamond Offshore Drilling is in discussions with a third party which may result in the Ocean Guardian rig leaving the Falkland Islands in Q1 2012. Until such time as a follow on contract for the Ocean Guardian is confirmed, there is no end date for the current contract, which allows for an unspecified number of further rig options to be taken by providing Diamond with notice on or before the spud of the preceding well in the campaign. Management stated that the farm-out agreement with Rockhopper will ensure that at least one well is drilled on this acreage in the current drilling campaign.
Victoria Oil and Gas (BUY, 13p) (VOG, 3.84p, ? 1.86%) released their final results for the year ending 31 May 2011. Production at the Logbaba gas and condensate project in Douala, Cameroon, with existing gross proved and probable reserves of 212 billion cubic feet, is expected later this year. The Company has completed two wells as producers and is nearing the end of construction of its gas distribution network intended to serve the industrial market in Douala. So far, 13 gas sale agreements are in place. At West Medvezhye in Siberia, prospective resources are now in excess of 1.4 billion barrels of oil equivalent (?boe?), exceeding the previous estimates by approximately 300 million boe, and including increased oil prospectivity to 670 million bbls. Across the Company, net reserves have increased by 40% to 52 million boe and net resources…
