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

DES and RKH need a semisub where Fogl and others need Drillship so no chance of them getting together.

All funds are in place for a minimum of 3 wells to be drilled all with dual targets.

Thats 6 targets to be drilled

The main problem is the rig market, which is at a peak, making it very difficult to get a suitable rig to drill in NFB. I remain optimistic however some thing may come up in the near future.

Postman just came,

2,000 pieces of seven for the Capt., that = 1000 pieces of eight in old money.

Ho Ho Ho.

Good old Pugwash

2 x test messages received Assagai.

The system does not give out e-mail addresses when it sends.
So you have to either post a message or send me an e-mail address for me to reply.

the 3rd one has just come in.

edit.This email has been sent via the MoneyAM Website (http://www.moneyam.com)

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Cap - Still not sure what I am doing. Do you now have my email or dp I have to include it in the body of the message?

Hi All
Dead cat bounce or the real thing ?
hope the shorters have to jump from the top window
to make sure of a certain death.
6 month target 70p.
Something is brewing where are the board,
news must be close
All the best
HUSTLER

http://www.falklandnews.com/public/story.cfm?get=3713&source=3

January 12, 2006
by J. Brock (FINN)

THE ENVIRONMENTAL COMMITTEE MEETING REPORT



By J. Brock (FINN)



A meeting of the Environmental Committee took place in the Liberation Room of the Secretariat at 1000hrs on Wednesday, 10 January 2006. In attendance was Cllr. Richard Davis (Chair), Cllr Mike Rendell, John Barton, Director of Fisheries, Phyl Rendell, Department of Mineral Resources, Manfred Keenleyside (PWD), Dominique Giudicelli (Environmental Planning Officer), Sally Blake (RBA), Nick Rendell (Graduate Trainee), and Fiona Wallace (Minutes). Apologies came from Grant Munro (Falklands Conservation).



The first rather urgent item was the Environmental Impact Assessment Report done by Desire Petroleum. (See relevant FINN Reports). It is out for public consultation but needs to be further publicised in the media.

Umm, interesting that the EIA is classed as urgent ? Let's hope a rig is being organised either via a new farm-in partner, (highly likely I think), or direct.

imho, dyor.

Last time Oily when the report was published we were drilling within 6 months.

Urgent is a strange word to put in mind you why so urgent?

Hi all

DES giving a few points back to the bears today. The 200 day moving average and the gap down are giving us a bit of resistance at the moment. The fact that the 200 day moving average is now much closer is giving a much better picture. I think the rally so far has been great. As with any forward moving stock, the bears will take a feed. The bulls will see a bargin again then start buying. That's the theory anyway! Each day that passes just puts us closer to news of a rig.




Good Luck All

Eddie

http://www.falkland-malvinas.com/Detalle.asp?NUM=7054

Cllr Summers: Malvinas Basin exploration activity wont harm us

OIL exploration activity planned by Argentina in the Malvinas Basin will not hurt the Falklands and could instead be good news, Councillor Mike Summers says.
South American news agency Mercopress reported yesterday that Spanish oil company Repsol YPF had signed agreements with Argentinas state energy firm Enarsa and other international partners to explore for hydrocarbons in offshore Argentina.
One of the agreements is for ten years and relates to all offshore areas on the continental shelf from the border with Uruguay to the Falkland Islands, the San Jorge Gulf and the Austral basin.
The company plans to start drilling in the Malvinas Basin in 2008 based on 3D seismic data completed in early 2005, the statement said. When asked if this will affect the Falklands, Councillor Summers said it will not as, the Malvinas Basin is a big area that sits outside our EEZ.
He added, In some ways it could be good: the more the South West Atlantic oil province is explored and enlarged the more world interest there will be in the area - including ours.
Desires EIA released
Meanwhile in the Falklands, an Environmental Impact Assessment (EIA), submitted to the government by Desire Petroleum prior to the start of their planned exploration drilling programme, has been released for public consultation.
Copies of the EIA in its entirety on CD ROM and in print can be obtained from the Department of Mineral Resources; printed copies are also at the Environmental Planning Department and the Public Library in Stanley and Fox Bay, Port Howard, Hill Cove and Goose Green.
Written representations in relation to the EIA must be received by February 14 and sent to the Department of Mineral Resources.
Desire Petroleum has 28 days to respond to comments received.

MPs to make February visit

A GROUP of British Members of Parliament will visit the Falklands for a week next month as guests of the government, arriving on February 15.

I wonder what the chances of the Desire EIA team being there at the same time are??

http://www.falklandnews.com/public/story.cfm?get=3705&source=3

Rockhopper Exploration plc will undertake an Electromagnetic Survey in the North Falklands Basin commencing Sunday 8th January 2006.

Well done RKH

http://www.falklandnews.com/public/story.cfm?get=3722&source=3

Rockhopper Exploration plc will undertake a 2D Seismic Survey in the North Falklands Basin commencing Monday 23rd January 2006.

http://www.falklandnews.com/public/story.cfm?
get=3723&source=3

REPSOL YPF, ENARSA DEAL GOOD FOR FALKLADS OIL EXPLORATION

All good news coming from the Falklands will be reflected in the SP soon.

RNS Number:9654W
Offshore Hydrocarbon Mapping PLC
16 January 2006

Press Release

For immediate release: 16 January 2006

Offshore Hydrocarbon Mapping plc

Offshore Hydrocarbon Mapping in Falkland Islands CSEM programme

Offshore Hydrocarbon Mapping plc (OHM) is currently on location with the survey
vessel MV Aurelia in the North Falkland Basin conducting a shallow water
Controlled Source Electromagnetic Imaging (CSEM) survey for Rockhopper
Exploration plc. It is the first survey of this type to be conducted in the
Falkland Islands and will be keenly watched by the exploration industry, the
Falkland Islands Government and investors alike.

Dave Pratt, OHM's CEO said; "By undertaking CSEM surveys Rockhopper Exploration
are progressing exploration in the Falklands, de-risking their exploration
prospects ahead of any drilling programme and ultimately protecting their
shareholders interests.

"In remote locations such as the Falkland Islands OHM's CSEM imaging technology
is especially valuable. Mobilising exploration drilling rigs to such frontier
areas, especially at times of very high rig rates, is expensive. As the cost of
CSEM surveys is significantly less than drilling, exploration companies are able
to investigate many more prospects than would have been the case if drilling was
their only recourse"

The data acquisition programme is being conducted over a number of prospects in
water depths of approximately 150 to 500 meters, using one of OHM's specialised
survey crews and incorporating OHM's proprietary EM source and receiver systems.
Although this is the first survey of its kind in the Falkland Islands,
feasibility modelling has indicated that the anticipated reservoir scenarios
should give a significant EM response.

Before mobilising for a CSEM survey, the prospect's electromagnetic response is
calculated and used to assess the influence of local structure, for example salt
or volcanic bodies, on the outcome of a survey. The sensitivity to target
parameters such as reservoir thickness, resistivity and lateral extent is
examined and the resolution with which these parameters can be determined is
quantified. In cases where there are competing geological interpretations of
existing data, modeling is used to ascertain to what extent these can be
distinguished using CSEM surveying.

Finally, acquisition parameters are optimized for the defined survey objective.
The model results are used to determine the source tow and receiver array
geometries and source transmission frequencies that will provide the best
resolution of target structures and properties.

Only when the modeling process has been completed, can OHM confirm that the
technique will provide conclusive indication of the presence of resistive layers
consistent with hydrocarbon reservoirs in the prospects modeled.

Once the data is gathered and processed, there are a range of 1D, 2D and 3D
inversion algorithms that can be applied to the data along with OHM's innovative
diffusive E-field focusing (DEFF) imaging technique, which allows resistivity
volumes of the earth to be created.

Dr. Lucy MacGregor, OHM's Chief Scientific Officer commented:

"The North Falkland Basin is a new area for the application of the CSEM
technique and as the targets are in relatively shallow water depths, the survey
provides us with the opportunity to further demonstrate our recently launched
shallow water technique.

"As with all our surveys, we take great care in the survey planning and
modelling stage to ensure that the data we do acquire is relevant and capable of
being processed and interpreted to give our clients a meaningful answer."

Marky and Capt thank you for keeping the board up to date. Clearly a sudden rush of news at the moment - a very encouraging sign that deals might be happening. Ann features again as a possible target in the Environmental survey so maybe it's not a typo after all, maybe they want to check out all the targets to the west first, closer to where REPSOL YPF and ENARSA have also made an announcement to drill but in Argentinian waters. Being long I am probably too optimistic but this does seem to be a lot of news at once. Hope it's no coincidence. Certainly RKH starting a 2D survey before the CSEM survey is finished seems strange unless there is a reason for the urgency.

http://www.falkland-malvinas.com/Detalle.asp?NUM=7059

I tend to agree Luckyswimmer, not about Ann though.

Another visit by MP's, I cannot remember when the last lot of UK. MP's went but it was not that long ago.

Even Phyll Rendell's mineral resources statement read to me as if it was more political than geological.

Hi all

Thanks to all for your input.

It looks like DES has just stopped for a breather. There has been a bit of selling preasure at 0.3400p, the support looks to be about 0.3000p. The 200 day moving average and the last gap down may just take a while for DES to pass through. I'm sure any good news will boost DES in the right direction.





Good Luck All

Eddie

http://www.falkland-malvinas.com/Detalle.asp?NUM=7066

Looking good today!

Hi all

We can use the chart above. DES made a fantastic move today and has also closed above the 200 day moving average. This is giving very bullish implications. There is no shadow either, we do still have the gap down to deal with, but DES is looking very strong at the moment. DES was the 2nd highest mover by % in the oil & gas sector. There was a small mention in the AFX that Westmount still hold 5.5 million shares in DES.


Good Luck All

Eddie