Desire Petroleum

<>Desire Petroleum plc (Desire) is a UK company listed on the Alternative Investment Market (AIM) dedicated to exploring for oil and gas in the North Falkland Basin.

Desire has recently completed a 6 well exploration programme. The Liz well encountered dry gas and gas condensate at 2 separate levels while other wells recorded shows.
Together with the Rockhopper Exploration Sea Lion oil discovery in the licence to the north, these wells have provided significant encouragement for the potential of the North Falkland Basin. The oil at Sea Lion is of particular interest as this has demonstrated that oil is trapped in potentially significant quantities in a fan sandstone on the east flank of the basin. It is believed that over 50% of this east flank play fairway is on Desire operated acreage.

Desire has now completed new 3D seismic acquisition which provides coverage over the east flank play, Ann, Pam and Helen prospects. The results from fast-track processing of priority areas are provided in the 2011 CPR. A farm-out to Rockhopper has been announced. The revised equities are shown on the licence map (subject to regulatory approval and completion of the farm-in well). Desire Petroleum

Rockhopper Exploration

British Geological Survey

Argos Resources



Latest Press Realeses from Desire

I got in at the end of July @ 35p so I am very much hoping that any current losses and patience will be rewarded! Prospects look very good and it should be a very exciting time before Christmas. Keep posting - the updates from all are much appreciated by me certainly.

Taken from web site today 11.09.04


Marketing visit to Canada and USA



The Mineral Resources Department would be considering a marketing strategy for 2005. Meanwhile Desire Petroleums 3D seismic data had been fast-tracked and a number of companies in the USA and Canada were keen to view it. The Committee supported a proposal for Dr Phil Richards to accompany a Desire Petroleum representative on a marketing tour in late September.

http://www.falklandnews.com/public/story.cfm?get=2890&source=2

The next extract is taken from the results at the end of 2003
stament.

Future drilling remains dependent upon a successful farmout and I am pleased to report a significant increase in interest in the North Falkland Basin by the Oil Industry. The continuing strength of the oil price, together with the much-publicised failure of oil companies to replace their reserves, especially from traditional areas such as the North Sea, have led to renewed interest in frontier exploration in areas such as the Falkland Islands. A number of companies have signed confidentiality agreements with Desire, in order to interpret both the existing 2D and the new 3D seismic data. Discussions with these companies will take place in parallel with the 3D processing and interpretation with a view to agreeing a farm-out drilling programme with a partner, or partners, to be initiated in 2005 dependent upon rig availability. At present, rig availability is good and costs are low as a result of the downturn in offshore drilling worldwide.

As it states above. A number of companies have signed confidentiality agreements with Desire, So in my thinking here and correct me if am wrong the info has been shared with these farm-in partners from the start of the 3D and the interpretation so why are the going across there ?

1. To drum up more buisness

2. To talk to the potential farm-in partners and the discussion of selection of drilling locations and if this is to happen i would of thought the signing of contracts.

In the AGM this was said:

At the Desire Petroleum plc Annual General Meeting held at 6.00pm on Thursday 27th May 2004, Dr Colin Phipps, Chairman, announced that all of the 3D seismic data acquired from the North Falkland Basin had now been loaded and processing was proceeding well. In order to expedite the interpretation of the 3D data, the Board has decided to implement a fast-track process which, it is expected, will allow interpretation to begin at the end of June 2004 with preliminary results available by late August 2004. These results will then form the basis of continuing discussions with potential farm-in partners, including the selection of drilling locations.

Now i could be jumping the gun here ,but this looks like a BIG GREEN light for Desire here , this is all my view here and i would like to here what you all think. As Mr Phipps has said that drilling could start in early 2005 so contracts must be signed very soon to get a Rig and all the other things across there to drill in 2005.

All the bits of the jigsaw are coming together and i do feel this share now is a strong buy as news may come at the end of September or early October.

As Oily said your mad if you sell now, Buy some shares and it might just change your life because the upside is huge if it comes off.

Regards Markymar

http://www.falklandnews.com/public/story.cfm?get=2890&source=2

I agree there are potentially huge gains to be made here. The time is right to buy. The future's bright, the future's the North Falkland Basin Oil.

The share is now showing strong support following results, nothing has really changed here apart from the timings. See the discussion on ample for a really good read by quality posters but if DES do hold out for a 50% farm in share, then it will all be more worth while for the long term share holders who deserve the benefit. Good to see that day traders have left at last, now we can see the real value of the company determined.

Wednesday, 15 September 2004
Search News:

Falklands
Mercosur
Both

Falklands-Malvinas
Wednesday, 15 September


FOG Stock Market Debut.



Falkland Oil and Gas is to offer investors a stake on possible oil reserves near the Falkland Islands later this week, when it announces details of its planned Aim listing.

FOG wants to raise about 10m to fund 3D seismic surveys of its seven exploration licences off the south of the archipelago and has identified several promising leads.
The company's stock market debut will remind seasoned investors of Desire Petroleum, whose share price trebled in a few days in May 1998 when the company was drilling north of the islands. However, Desire was back where it started two months later on news that the oil shows did not reach commercial volumes.

FOG is working with Hardman Resources to explore the possible basins at the south of the Island. The Australian energy company has 22.5 per cent stake in the licences. Drilling is expected to commence in 2006.

FOG was formed in May this year by Falkland Islands Holdings, which holds a 28.9 per cent stake, Global Petroleum (25.7 per cent) and RAD Special Situations (45.4 per cent). The existing shareholders will keep their stakes. KBC Peel Hunt has been appointed as broker.

Slightly of topic but this can only put the spotlight more on Desire drilling in 2005 and FOG in 2006, fingers crossed all goes well and we just see a picture of an oil rig in the Falklands soon.

Nice one Markymar, as you say can only be good news for Desire! Topped up with further 18,077 @ 25.25 today and got some cash waiting to have a punt on FOGL too!

Cheers
JPDM FM

JP would you not be better in RAB for a safer bet? FOG will have to raise extra cash to drill over there or get a farm in partner a bit like Desire, i need to read up a little more befor i decide which way i jump just not sure.

JP .. Do you ever get up to the Newcastle area ? Did you get a new job ?

Hi all came across this little Gem, its a little long so i wll cut to the chase.....David Tatham talks about the future of the Falklands and that " At this point 1 come to the Argentine angle on oil. The Foreign Office had discussions last week in Buenos Aires with the Argentine Government on oil. These were the first since 1992. There was, perhaps predictably, no outcome, but there will be another meeting of the High Level Group in September"

Now that is what i call intresting, it seems to me that 2005 we will be drilling in the Falklands with the aid of Argentina or without them . I am even more positive things have been on the political side standing in the way of Desire drilling over there but i feel the wheels are turning .
I have read that Argentina want 3% cut of any oil pulled out the ground maybe this is the stumbling block.

THE FALKLANDS: TODAY AND TOMORROW

by

H.E, The Governor, David Tatham

Speech at Luncheon of the European-Atlantic Group in St. Ermin's Hotel, Westminster, SW1
July 31st 1994



When Douglas Hurd, the Secretary of State, visited the Falklands in April I told him that the job of Colonial Governor was one where schizophrenia was not simply an occupational hazard, it was a job requirement.

The Governor is the representative of Her Majesty in the Falkland Islands and the representative of her Government, but he is also the head of the Falkland Islands Government and he is the Chairman of the Executive Council which is the cabinet, and the Legislative Council, which is the Parliament. So, when I use the word we, I often have to think very carefully of who precisely I am representing.

But today I am 1 representing, really, the Falkland lslands Government, and if I say "we" I mean the Falkland Islands Government and the people of the Falkland Islands. I trust Councillor Teggart, who is much better qualified to speak on behalf of the people, having been elected by them, will forgive me.

I think many peoples vision of the Islands is stuck in 1982, and we suffered a great deal from the tabloid press and television presentation of the Islands as a windswept tundra blasted by the snow, frost and rain, a place covered by mines, almost unliveable in during normal conditions and absolute hell during wartime. In fact, really the Falklands are a very pleasant place to live in. The climate is nothing like as bad as is portrayed. Certainly it is boisterous, it is windy, but I think that our winter is a far better winter than the British one and certainly far brighter. So I am going to try and update your vision of the Falklands. I have called it Today and Tomorrow, and bring what 1 think is good news, never as interesting as bad news but still worth having.

There are two watersheds in the recent history in the Falklands. The first was the Conflict and the Security which the re-conquest of the Islands brought, and the proper garrison in the Islands. The second watershed was the introduction of the fishing regime and the revenue from fishing which had, I think, enormous effects, both economic and psychological.

I treat War and the ensuing Security first. I think that the Conflict showed that the Falklands would be defended and could be defended and the construction of Mount Pleasant Airport afterwards has enabled the garrison to be reduced to a minimum figure. The annual cost of the garrison, the extra cost, is still sixty million pounds. This is certainly a lot of money, but it is less than most people imagine, and it is, I think far from unbearable

The Security has had a number of results. The first is the growth in the population. We still have a tiny population by most standards, only 2, 100 people. But this population has been in sustained rise since the Conflict. Before the Conflict it was in almost terminal decline. Security has also enabled us to pursue a development programme. We have seen the break up of the old estates and the large landholdings, and these have been taken over by individual farmers. We have seen the growth of a large number of small businesses in a community which had been dominated by one company. Finally, Security gave us the confidence to impose the fisheries regime and the fisheries zone, and has given us the confidence to designate an area for oil exploration.

If I can deal first with the question of land, which is perhaps of least interest to people here, but it is very important to us in the Islands. When Lord Shackleton wrote his first report in the late 1970's, about 10% of land on the Falkland Islands was actually owned by Falkland Islanders. The rest was owned almost entirely by British landholding companies. The situation now is totally reversed: about five to six per cent of the land is owned by outside companies, in fact I think there is only one company left. There has been an appreciable increase in production. What we have seen is the break-up of the old settlements, each one run by a company, and the setting up of smallholdings. A smallholding in the Falkland Islands is a very relative term; we are talking about ten thousand acres. So when one meets very ordinary farmers in Camp, they are farming about as much as a Duke would in England. (Unfortunately they don't make quite as much money from their land as a Duke would). Nonetheless, there has been appreciable increase in production, we are about 20% up on wool production since the sub division of the big estates. It is not as profitable as we would wish, but this is because of the world wool scene which is slowly improving but is still very down. Prices are extremely low and until the Australian stockpile is used up we shall find it difficult to get good prices. The ownership of the land, the land for the people, has been a revolution in Falklands terms, and a lot of farmers are working very hard on their own account all over the Islands and making a go of it.

The move from land to fisheries which was the second watershed in the years since the war. The introduction, of the Interim Conservation Zone in I986 for the first time, enabled the Falkland Islands Government to. Have a considerable source of independent revenue. The Islands' income quadrupled within one year. This had an obvious, very significant, effect. I think one of the most welcome effects has been the growth in confidence. When you have your own income you do not have to go to ODA or others and ask for their agreement to every minor development plan or have to accept the various controls which, rightly or wrongly, they insist on putting on. So, we see the Islands investing heavily in their own infrastructure, in communications, in health and education, and this has made a tremendous improvement in the quality of life in Stanley and all over the Islands. Often when one hears the odd person on a radio phone-in saying "I am gaining nothing from the fish income", one has to remind them that actually their children are extremely well educated, they have excellent health care-far better than in an average British town and they have subsidies for farmers. The general level of state services is extremely high. Everyone has benefited, but most welcome of all has been the increase in people's self-confidence and their willingness to stand up and speak on their own behalf and to deal with the rest of the world.

What we are seeing now is the growth in the Falklands' participation in the fishing industry. Originally we simply provided licenses to foreign fishing companies, mostly from the Far East, but also to a very large number of Spanish companies, and we sold these licenses and pocketed the income. What we are now seeing is the growth of joint ventures, particularly with Spanish companies, in fishing for squid. This is very good news and we will see an increasing involvement of Falkland Islanders in the industry, even if only on the business side. There are not enough people to man the boats; everyone I meet here feels the Islanders should be out there pulling in the nets. The truth is we do not have enough people. We are talking about our population of two thousand one hundred: there are perhaps ten thousand people working in the fishing industry offshore during the season, an extraordinary disproportion. And regarding oil - but if it proves to be a wild goose chase, if there proves to be no oil, we can make a very satisfactory income from wool and from fish for the foreseeable future. These are both renewable resources if we are careful.

But as for oil we will not know until somebody actually drills and strikes the oil - and this is very frustrating. Back in 1982 everyone thought the real reason for the war was oil because there were thought to be enormous resources there. All we can say is that there are certainly very large areas of prospective oil-bearing strata. We have done a first seismic survey of this area and this has been on a grid about ten kilometres by twenty, thirty, forty, depending on the size of individual areas. But this grid does not tell us where to drill. There has to be further seismic surveying in great detail of the areas which this grid suggests will be promising. The results of this first seismic survey show that there are areas which promising, some which our consultants describe as 'good/excellent', and others which they describe as 'fair/poor' and so on. But there are two or three areas which look very well worth trying, and this is really the next stage. When I left the Falklands last month 1 had on my desk a mass of reports on various items of interest on the oil side, on the geology, on the tax regimes and the social impact.

It has been said that the Falkland Islands were surrounded by a sea of advice, and certainly when 1 left that was how I felt. Lots of advice and decisions not yet taken. We do wish to press on, we are preparing legislation and we are identifying the areas which will be offered for exploration.

At this point 1 come to the Argentine angle on oil. The Foreign Office had discussions last week in Buenos Aires with the Argentine Government on oil. These were the first since 1992. There was, perhaps predictably, no outcome, but there will be another meeting of the High Level Group in September. Both the Falkland Islands Government and HMG in the UK can see many possibilities for a role for Argentine companies, both in the supply of equipment and materials for oil prospecting and in the actual exploration process. Such participation would be under what we call the 'Sovereignty Umbrella', that is an agreement that whatever takes place does not prejudice either side's position on Sovereignty. This umbrella, in fact, covers most Anglo-Argentine discussions on such matters as fisheries. It is a practical arrangement we both understand and it works very well. But we do not wish the Argentine claim to the Islands to get in the way of oil exploration. We believe that there will be benefits for everyone in the area from the exploration and exploitation of oil. To use a railway metaphor, the train of oil exploration is currently waiting at the station, the whistle to set it off is about to blow. If the Argentine Government and Industry wish to get on board, they can, like any other, buy their ticket, like any other government, like any other company. But they should not delude themselves into believing that they can prevent the train from starting.

Finally looking ahead, I am optimistic. I believe that the decline, defeatism, depopulation of the 1970's is behind us. I believe that history is on our side. 1 believe that we have justified the 1982 campaign and the expenditure since on the defence of the Islands. We have not repaid it, for unless we discover oil, it is very difficult for us to repay it. But I think that we have morally justified the sacrifices and the losses which took place then and I am proud of what we have achieved in die last twelve years. I would hope that if oil is developed, the Falkland Islands will become an asset to the British Government, rather than, as they are at present, a financial liability. 1 hope that we can move to a more normal relationship with our neighbours, but I think this depends on them. The problem here is not the existence of the Falkland Islands but the Argentine claim to the Falkland Islands.

meeting confirmed today...............

Other FIG Councillors Movements.

Earlier this week, Falkland Islands Councillors Jan Cheek and Norma Edwards left the Islands to attend a meeting of the Overseas Territories Consultative Committee. Councillor Cheek will also be attending the Party Conferences of the Labour and Conservative Parties, along with Cllr.Stephen Luxton and the Falkland Islands Government Representative in London, Sukey Cameron. A spokesperson at the Falkland Islands Councillors Office in Stanley stated that there would be no Falkland Islands councilors present at the forthcoming talks between the British and Argentine Foreign Ministers.

Intresting times ahead

Since I bought this at 34p it's gone down. Big drop today down to 21p any idea why? If this keeps up it really start to hurt.

MS

MS - I'm afraid that I haven't got any answers for you. I got in @35p so we are in the same boat! I keep asking myself whether I am being a complete twit by not getting out, then when you consider the "reasons" for staying put, you think "It will come alright eventually...." Part of me wants to top up, but the question is When? Would it be throwing away more cash? There have been several posting on iii this morning all in a similar vain with suggestions this the price could drift to 10p (we're halfway there!) and I think the silence from DES is beginning to make investors nervous.
I'd be interested to hear others views. I'm inclined to stay put but its tough! I hope, and I think, patience will be rewarded eventually.
JS

mickey
Unfortunately you bought when there was a lot of hype in the price, that and poor results has lead to the fall.

dont belive the mags mickeyskint,or you will be.
the best thing you could do with this is ,,,,,,,,,,,,,,put a match to it ????afternoon maccer.,,,,,,,,,shares mag its for fools.

SALKELDJP

I feel exactly the same as you. Thinking about it I probably was influnenced and certainly bought too high. The only problem now is do I cut my losses or hold on for the long term. Decisions, decisions, decisions. Some divine intervention right now would be really good. Or even better for DES to give us some positive news and I can get my money back.

MS

Any news anyone.

MS

INTERNET NEWS:



When the United Nations meets for the opening of the General Assembly Debate this week, British Foreign Secretary, Mr. Jack Straw and Argentine Foreign Minister, Raphael Bielsa will hold routine meetings as well. It is expected that issues relating to the Falklands will be discussed but sovereignty is not on the agenda.



Argentina is due to become a member of the Security Council in January 2005.



They want a cut of that i think.

DES article in the telegraph
----
Falkland Islands oil is back in the frame, with shares in Desire Petroleum quadrupling this year and Falkland Oil and Gas also listing on Aim. High oil prices have invigorated frontier exploration and hopes run high.

Experienced players will recall the 1998 excitement about Desire, whose shares rocketed and then fell like a stone when drilling revealed that the oil had "migrated".

A distinction between investors and speculators is that investors regard drilling as the only proof, while speculators know there are trading profits to be made from anticipation. As an enterprising investor, I am willing to back exploration but I prefer a company to have sound cash flows from production too. Stances on these shares often boil down to your risk appetite.

Desire soared from 9p to 37p (now 25p) on speculation about the value of seismic data. Desire is re-appraising acreage to the north of the islands: whilst this is at an early stage "a number of significant prospects are emerging". This is still much too speculative for me.

Funding the Falklands

Falkland Oil targets a large area to the south and east, which has a different geology. Instead of potential elephants (industry-speak for very big finds) the talk is of whales.

Aim-listed Hardman Resources and Global Petroleum of Australia, are industry partners, and Falkland Oil owns 77.5 per cent of seven licences. Eight large prospects are each understood to have potential reserves of 200m to 600m barrels. Punters should consider the prospectus, especially its risk factors, when it is published this week. See www.fogl.co.uk or phone 020 7418 8900.

Funding is in place for seismic tests later this year; then up to 8.4m of funds currently being raised will be used for further tests next year. You can see from Desire's share price how such "results", or anticipation of them, can be enough to spark speculation. Falkland Oil has every incentive to impress the market, as it will need to raise substantial funds to drill from late 2006.

So Falkland Oil is tapping investors for cash quite early in its industrial programme. A timeframe of six months to a year before drilling could have been easier to sustain speculative interest. In terms of market risk, it is possible that some players in the shares will decide to take a profit (or loss) if they sense more excitement elsewhere.

My approach to risk and reward tells me to wait until the prospect firms up, though it is possible that I might miss a party in the shares well before then. As a careful investor, I am also mindful that whales also tend to migrate.

Demand on this over-crowded island will always ensure a property price premium | Funding the Falklands

Nice one markymar, will get some price targets together for October in next couple of days and post on iii.
Happy hunting mate
JPDM FM

is there a date set for the launching of FOGL in AIM?

Ask Peel Hunt the nominated brokers they may tell you. +/- 14Oct