Desire Petroleum (LON:DES) (HOLD, £1.00) (DES, 47.25p, ? (6.44%)) announced that the Liz well 14/19-1, drilled by Desire Petroleum plc, in the North Falkland Basin, has reached a total depth of 3,667metres. Final logging has been completed and the well is now being plugged and abandoned as a gas discovery. The initial log interpretation indicates that 17m of net hydrocarbon pay were encountered between 2961-3031m within a zone of over-pressured, predominantly sandstone, reservoir. A hydrocarbon sample and formation pressures were recovered from this interval. The initial analysis suggests that the hydrocarbon type is wet gas, but its precise characteristics will be confirmed through further analysis. Much work is now required to evaluate the reservoir quality, to determine the trapping mechanism and to assess the potential of this discovery. Dry gas was also recovered from a deeper interval below 3,400m indicating that gas pay is present in generally poor quality reservoir but there is considerable uncertainty on the rock type and more work will be required to assess its reservoir potential. Rockhopper Petroleum has a 7.5% interest in the well.
Heritage Oil (LON:HOIL) (HOIL, 581p, ? (2.38%)) announced that the Miran West-2 appraisal well, which spudded on 26 November 2009, has reached a current depth of 2,627m and encountered hydrocarbon-bearing intervals totalling approximately 1,800m within Cretaceous formations. The well will now be deepened to approximately 4,600m to explore further potential in the underlying Jurassic and Triassic structures. These targets have been identified from additional seismic data acquired in January 2010, after the Miran West-2 well had commenced drilling. It is expected that drilling will take a further four to five months, following which the well will be tested.
Heritage also issued an update on the proposed disposal of the Company's entire interests in Block 1 and Block 3A in Uganda to Tullow Uganda Limited. The only substantive condition outstanding to completing the transaction is the approval by the Government of Uganda. Heritage has received a letter from the Government stating that it supports Heritage's sale and transfer of the Disposed Assets and that it will conclude its review of the transaction within eight weeks. Following this, Heritage expects to receive formal consent and to close the transaction shortly thereafter.
Landore Resources (LON:LND) (LND, 11.25p, ? (0.0%)) announced that it has agreed to place 11,200,000…
