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

Hi Lucky,

Bamford didnt even know what the water depths were, if you going to write about a company you should know what youre writing about or you look an idiot.

The Desire board have never talked this share up not like FOGL and are time will come its just a bit frustrating at times and am sure if a deal is done it will be a good deal on good terms so I will stay optimistic on that front.

Interesting a 200K and a 250K buy just happened. It looks like Desire is not going to test it's lows after all.

Marky, I didn't realise that Bamford was once such a key figure at BP. He seems to be laying his cards on the table, I wonder what prompted his need to give his views on the Falklands. Could be good for us long suffering Desire shareholders.

Hi Lucky,

Hope you check your mail.Good to see the large buys when you get mail it might make you wonder why.

A rather long article and slightly rambley Imho. snip below, but read the full article.

http://www.falklandnews.com/public/story.cfm?get=3794&source=3

Mrs. Rendell gave a brief report about the Area of Co-operation. When the bottom fell out of the oil price meetings ceased but it is thought that with the increase in activity in the North and South Falkland Basins that talks with Argentine officials about the special area of co-operation could begin again.

A presentation by Desire Petroleum about the EIA will take place on 22 February 2006 at the Chamber of Commerce and Rockhopper Petroleum is using the Geo Pacific for 2D Surveys in the in the North Falkland Basin. FOGL have used GSI Admiral in the South Falkland Basin for the same reason, with 3D Seismic shortly to identify prospects for drilling. Rockhoppers OHM Survey with the GSI Pacific is soon to commence and FOGl has completed all but 3,000 sq km of their 25,000 sq km survey area in the South Falkland Basin.

In the future, Desire Petroleum plan to get a rig to do exploratory Drilling in their tranches as soon as possible. Vessels will do 3D surveys in both the North and South Falkland Basins. Seeing that there will be minimal impact on land, drill ships will be used to pump and store crude for on forwarding to markets on tankers. FPSOs as they are called, would, in future, have the facilities to liquefy natural gas into diesel for on forwarding to markets.

Former Governor, Mr. David Tatham, asked if natural gas could now be processed onboard FPSOs and Colin Phipps said not yet but research and development in that area is nearly complete and the facility for liquefying gas should be available on them in the not so distant future. Cllr. Clausen added that in Norway Natural gas is liquefied on barges and transported to market with no environmental impact.

Looks like it was vey professional.

http://www.falklandnews.com/public/story.cfm?get=3799&source=3

Dr Colin Phipps, Chairman of Desire Petroleum plc, is visiting the Falkland Islands with Mr. Ian Duncan, Chief Executive of Desire Petroleum plc, Mr. John Perry, principle author of the Environmental Impact Assessment and Mr. Mark Gillard, a Drilling Engineer. On the evening of Wednesday, 22 February the team gave a presentation at the Chamber of Commerce and explained the main points of the Environmental Impact Assessment, which is on Desire plcs website.

Mr. Gillard said that Desire planned to drill three exploratory wells and he showed graphics that indicated how the wells would be drilled and how deep they would be. He said the project would take approximately 70 days, with supplies and personnel being ferried out to the rig using two supply boats. One boat would stay near the rig for Safety reasons.

Mr. John Perry of RPS Energy presented a very thorough set of slides that explained some of the impact issues, such as rig to air pollution, rig to water pollution, noise pollution. Assessments were also done with respect to seabirds, Marine Mammals and fish. The key points of the baseline study also dealt with Met-Ocean, Socio-economic issues, land and protected areas and species, as well as waste management. There would be no flaring, for example.

In mitigation, the assessment sought to reduce the impact to the environment to the lowest possible level.

Questions from those present dealt mainly with the drilling muds that are a necessity in the hydrocarbons industry. Mr. Perry reassured that only water-based non toxic muds would be used.

Several mechanisms have been in place since the 1997/98 drilling sessions in the North Falkland Basin. As in the past, EMS Standard Offshore Monitoring Protocol would be in place to ensure the environmental and safety aspects pointed out in the Environmental Impact Assessment would be carried out. Besides that, people with a keen interest in the environment pilots, scientists, fishermen you and I would be reporting any infringements.

The possibility of a users group was thought to be a good idea. Dr. Phipps said that since the Environmental Impact Assessment was published on the Desire website there had been some useful feedback that would be incorporated in methods and practices.

Read the article not just the headline!!

http://www.falklandnews.com/public/story.cfm?get=3798&source=3

Just a snip from the article.

CP: Last night I was asked, What were the chances of finding oil? And, I said the chances of finding oil, as such, were almost 100% because the Shell well, for instance, already found oil and it found gas. And, had it been onshore, say in the USA, it almost certainly would have been put on to production. It was good enough for that. The trouble was that it was drilled in the centre of the basin and it only entered thin, silted type sand, which means its got very small grains. And, the small grains mean that although it could be quite porous, its very difficult for oil to flow through it. There is more friction, if you like to think of it that way. The coarser the pours, the faster it flows. What we are really trying to do now is to find a reservoir of coarser sand, where the oil can flow through more easily. So rather than being able to produce 500 barrels a day, we are going to be able to produce 5,000 barrels a day. And, thats what we need to do out in the North Falkland Basin for it to be economical. Our big task is not so much finding oil, which we know to be there. What we are now trying to do is to find the reservoirs, which will give us the productivity, which will make it economic.

Looks good to me Caps!!

http://www.falklandnews.com/public/story.cfm?get=3798&source=3

Falklands : "Have Rig Will Drill," Says Dr. Phipps

http://www.sartma.com/art_2646.html

Not quite the right headline! Indeed he didn't say that at all he said

"if we get a rig we will drill"

Which is common sense.

coeliac1,

If we get a rig there would be an RNS which there has not been!

All i have done is copyed the title of the headline from story.

Well could we of hit the peak or is it a blip!!!

US rig count slips

By Upstream staff


The number of rigs searching for oil and gas in the US fell by two to 1543 for the week ended 24 February, according to energy services firm Baker Hughes.

During the same week last year, there were 1281.

The state of Texas lost five rigs and was operating 686 by the end of the week. The number of rigs in Oklahoma rose one to 174.

The number of rigs in the US Gulf of Mexico rose six to 84, compared with 99 last year.

The total North American rig count fell 21 to 2242, while last year it was 1898.

Canadian rigs fell 19 to 699, compared to 617 last year.

For more details and international rig count figures, please see "related links".

Just had a look at the map of RKH's seismic.

There target J1 seems to have take quite a pounding from the seismic guns.
Lots of closely spaced lines and overlapping Des's block as well.
It should be possible to get a 3D interpretation from the new data when combined with the old DES data over that particular target in my view.

If he CSEM results are positive, then surely they will consider drilling it if a rig is in the area.

Lots of big "ifs" Capn.

If there is no rig then by the end of this year? then RKH will be able to cancel the farm in deal with Des. The way things are going I think there is every chance they will do that as rigs are not on the horizon.

Coeliac

9 months is a long time and a lot can happen with in that time frame and RKH I would think are very happy with there 7,5% stake and are fully committed and focused on what works has to be done.

Why do you think they would cancal there farm in deal?

Capt, looks like Rockhopper are concentrating on two prospects J1 and K, if Desire's nearby 3D and their own 2D and CSEM survey can produce a reasonable 3D picture then they certainly look like they could drill their own 3 well campaign which would presumably half the cost for Desire of bringing the rig in from afar. I presume they would need to generate some more funds by a placing but that shouldn't be difficult in the current climate.

Any ideas on whether the recent large volumes were an overhang being removed or a new investor.

I suppose a 3 well campaign is possible with funds for RKH.

Just 1 well in say J1 or K would be more likely in my view.

RKH must have around 5-6 million in the pot for 3D seismic in PL032 + PL033, so maybe they could use that.
At the moment RKH are in for 15% of the MOB costs of any rig with the farm in agreement with DES.
A deal over MOB costs could be split in a 4 well senario somehow I'm sure.

Let' hope they get some +ve results from CSEM, and then we can speculate further.

Marky
Wasn't the point of RKH's farm in that they would be in on an early drill, in advance of their own acreage. They did have an option on 15% but didn't take up the extra 7.5% because of the rig position. If they end up being quicker than Des I am not sure there will be anything in it for RKH, apart from a load of cost with limited possibilities of a strike.

My guess is CP and Jungles have had a tiff. CP has refused to use OHM surveys and Jungles has refused to farmin to the extra %.
Its the flip of a coin as to whether RKH will stay or go at the end of the year should things stay as they are.
Unless we have a rig why would RKH stay with DES rather than progress their own acreage??

m

Desire petroleum is ready to set sail again
not without me boys, Hello sailors!!!

Hi guys
There are rumours going around of a rig deal ! Anyone know anything for sure?
Where`s Eddie ?
Regards Berlingo

if there are rumours circulating of a rig deal would you not expect the sp higher than 30p. Lets be honest, if the likes of us bb readers/users were to learn of possible mega news surely the big players would be there first. Despite recent buys we are a long way from the 10m daily share volume we have enjoyed in the past when things have occured.

I'd love to be proved wrong. We should be updated by our board, we are well overdue.

m