Desire Petroleum (LON:DES) has spudded the 14/15-3 exploration well on the Ninky prospect in the North Falkland basin.
The well is designed to test a ‘combined structural dip and stratigraphic pinch-out trap’ with multiple reservoir targets. It will be drilled to 2,620 metres and it is expected to take around 30 days to drill.
Desire has a 92.5 percent stake in the Ninky prospect and Rockhopper Exploration (LON:RKH) has the other 7.5 percent.
Interest in the Falklands oil frontier was reignited by Rockhopper’s successful Sea Lion appraisal well, which increased the company’s confidence in the “commerciality” of the Sea Lion Field.
The latest Sea Lion well discovered a significant column of oil earlier this month.
Crucially the positive result provided encouragement for investors that had become somewhat disillusioned after a series of disappoint well results – most notably Desire’s Rachel well that found residual oil and lots of water.
In around a month’s time investors will find out if Ninky resembles a roaring Sea Lion or a soggy Rachel.
After that Rockhopper will get the rig back for its extended drill programme. Earlier this month it agreed a deal to secure three firm additional well slots on the Ocean Guardian drilling rig.
Over the coming months we will also find out more about the North Falkland basin as a result of the extensive seismic work that’s been contracted by Desire, Rockhopper and Argos Resources (LON:ARG).