Exploration firm Desire Petroleum said yesterday it believed there would be more successes for oil firms in the Falklands.
Desire said the area, the centre of rising tensions between Britain and Argentina, was emerging as a significant oil and gas province.
It added, however, that it did not have enough cash “at this time” to restart any drilling itself and that the North Falkland Basin, the location of the only discoveries so far, could be left without a rig for at least 12 months.
It said 3D seismic survey data shot in the area last year would help it to increase its prospects and potentially make it attractive for any possible partners fellow Falklands explorer Rockhopper Petroleum was talking to.
Last year, Rockhopper made the major Sea Lion discovery, thought to contain 1.3billion barrels of oil, in the basin and has been looking at development options.
Announcing 2011 results, Desire chairman Stephen Phipps said: “Rockhopper has begun actively looking for partners in the development of the main Sea Lion complex and the discoveries and exploration potential of our adjacent acreage is likely to be of interest to any potential partners.
“We retain an open mind as to future development of our acreage position, be it through farm-outs or by the contracting of a drilling rig.”
Desire’s own six-well drilling campaign ended last year with disappointment on its Ninky well.
A 40% farm-out to Rockhopper on its PL004b and PL004c areas led to the successful 14/15-4a well, which found hydrocarbons in an extension to the Sea Lion reservoir plus in the Casper, Beverley and Casper South reservoirs.
Desire’s restated losses had more than halved, from £71million in 2010 to £26.5million in 2011, its results showed, a result of lower exploration and evaluation spending.
Desire added that it was pushing ahead with work on 3D seismic acquired last year and which it is hoped will give it additional prospects in the basin.
Mr Phipps said: “The Sea Lion discovery plus the associated discoveries in the farm-out well reaffirm our belief that there will be further successes in the North Falkland Basin and that a significant oil and gas province is emerging.”
Desire’s shares closed down more than 3% at 28.5p yesterday. Its 2011 results were announced as the prime minister was marking the 30th anniversary of the invasion of the Falklands with a reaffirmation of Britain’s determination to uphold the islanders’ right to determine their own future. Yesterday marked three decades after Argentine troops seized the islands’ capital, Port Stanley.