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

Yes oily thought it was very strange but they know something is off and i no part of the story so intresting times ahead and meeting in middle of week and will email gavin again and see what he has to say then.

Am so near to printing this name of oil company but just need a little more or i would be ramping.Good times ahead and phipps will have to think of six more names now could i suggest one Miss money penny.

Bloomberg
Desire Petroleum Plc (DES LN), which explores for oil and gas near the Falklands Islands, surged 7.75 pence, or 28 percent, to 35.75 pence after saying it discovered natural gas at a site in the North Falkland Basin. A number of unidentified companies are considering tapping the gas, the company said.

How many prospects are there now?

Before the 3D there were 8 according to Desire's website. 5 in tranches C and D; 1 in tranche I; and 2 in tranche L.

The 3D covered tranches C and D. And the RNS tells us "at least six" prospects have been identified.

So has just one more prospect been discovered in C/D? Would one of the resident experts like to answer this question for me?

3D Completed: Seismic Identifies Falklands Oil Prospects
November 9, 2004
by J. Brock (FINN)

3D COMPLETED SEISMIC IDENTIFIES FALKLANDS OIL PROSPECTS



By J. Brock (FINN)



The Board of Desire Petroleum has announced that the interpretation of both the fast track and final processed data 3D seismic survey over Tranches C and D has been completed. They further announce that in addition to the new 3D data, the previously acquired 2D data was incorporated in the interpretation where no 3D data was available.



Analysis included in the interpretation covers various seismic attributes as well as geological study. Excellent in quality, the data and the new interpretation largely confirms a new geological model proposed by the Company. Other new prospects have been identified and are associated, in particular, with well-defined alluvial deltas and fans.



Data interpreted shows that within the area covered by the 3D seismic, a number of prospects have been identified. Of these, six are large enough to contain economic accumulations of oil in the range of 100 1000million barrels. According to information received from Desire Petroleum Plc, these six areas are in addition to prospects already identified by 2D seismic outside the area covered by the 3D survey.



Now for more features! The 3D seismic has shown the presence of Direct Hydrocarbon indicators (DHIs). In particular, there are considerable indications of the presence of natural gas as well as oil. Considerable volumes of gas were encountered by the first well drilled by Shell in Tranche B but the well was not tested because, at the time, the value of gas was too low to be economically producible in an area as remote from markets as the North Falkland Basin. However, since that time, the price of gas (along with oil) has risen sharply and new technology such as gas to liquid (GLT) in which diesel fuel is produced from natural gas, have been developed.



This being so, the Board commissioned a scooping study on the economics of gas production, which has shown that, at prices well below the current levels, gas accumulations would be economic, given a field equivalent size to a 300million-barrell field. Several of the prospects identified to date match this requirement and it follows that natural gas can now be added to the economic prospectivity of the North Falkland Basin.



Several parties interested in farming into Tranches C and D are now examining the interpretation and conducting interpretations of their own. It is hoped that these will lead Desire Petroleum to conclude an successful farm-out. This will lead on to exploration drilling of the most attractive prospects, said Dr. Colin Phipps of Desire Petroleum.

SMITHY

This is part of the news realeaed

Within the area covered by the 3D-seismic a number of prospects have been
identified. Of these, at least six are large enough to contain economic
accumulations of oil in the range 100-1000 million barrels. These six are in
addition to those prospects already delineated by the 2-D seismic outside the
area covered by the 3D-survey.


Notice the word in additition so there are six more prospects been found meaning Mr Phipps will have to think of six more names.This is on top of the 2.4 billion barrels found by the 2D and also the talk of gas now.

Its huge and this is just part of the tranchers Desire have, its time to wake up to this share as in last post there is a meeting in mid week to come over in Stanley.

As pointed out befor the news came out today so JP get ready to put that extra o on your px targets soon.

Regards all markymar

Up again, don't miss this one, reserves to market cap is mad and they will drill this now the fields are more than 100mb, and gas too!

Great to see what the F. war was really all about finally show its colours.
There will be plenty of upside from this price today;
as the man said "You aint seen nuthin yet" and imho we've got another Cairn type position here.

Might appear a rampers post but having been involved since inception and having friends within the seismic oil/gas industry they have consistently said that when oil reaches a certain commercial price point the Falklands will be huge.

That point has now been reached and look whats happening....

Colin Phipps Talks of Rising Falklands Oil Prospects
November 9, 2004
by D. Voggle (BBC World Service)

COLIN PHIPPS TALKS OF RISING FALKLANDS OIL PROSPECTS



A Report for BBC World Service Calling the Falklands by Deborah Vogle (DV) 09 NOV 2004



The high price of oil at the moment is worrying economists and city analysts here in London, as they fear it might push up the general level of inflation. Last month prices reached a record high at $55.00 a barrel. Now they are down to just under $50.00 still very high. So, the long awaited results of the latest exploration in the Falklands could be encouraging. The seismic survey carried out by Desire Petroleum in the North Falkland Basin is the second, which has been done in the area but this time it was a 3D seismic survey rather than a 2Dimentional one. And that, according to Dr. Colin Phipps (CP) Chairman of Desire, produces a far more accurate picture. So what. I asked him, did the picture show?



CP: The whole purpose of the 3Ds was that we had already ascertained from exploratory drilling that we had a very rich source rock in the North Falkland Basin. The most important thing was to find out whether and where a reservoir had developed. And, the thing about 3D is it does enable you to take out vertical latitudes. I wont go into it in detail but you are able to manipulate 3D data to indicate the likelihood or otherwise of there being reservoirs. They also have direct hydrocarbon indicators that the possibility of a seismic response, which doesnt actually tell you theres oil and gas but its indicative of oil and gas and we have looked at those as well. The results of the 3D survey have been that we have been able to identify the development of reservoir rocks. And, there are also oil and gas direct hydrocarbon indicators. The gas one is particularly interesting now because, when we first drilled gas was at a price, which never would have been economic to develop in the Falklands. But at current gas prices, even gas would be economic, so it adds a further dimension to the potential of the basin.



DV: How exactly would that be used?



CP: The Gas would have to be brought on shore and it would be subject to what is known as Gas to Liquid Technology (GLT), which effectively turns gas into diesel oil. And, its very high quality diesel, which you can put in your Land Rover straight away and drive off with it. And, there is something of a premium attached with it. And, that is one of the reasons of this gas to liquid technology that has made a lot of remote gas fields much more potentially profitable than in the past. Its a relatively new technology.



DV: So, can you put a figure on the likely output of this area?



CP: Its very hard to say. The number of prospects that we have identified is quite large six to ten. The potential of the prospects and let me be clear, potential doesnt mean to say that there is oil there or gas there of that size. But the potential is for discoveries up to a billion barrels in size. A billion barrels is a giant field in world terms.



DV: This is potentially very exciting news. Ow is the stock market responding to it?



CP: Today Desire share price went up from 28 yesterday to 37.5 at the moment. But it jumps about a bit and in the end, the stock market reaction is only going to be justified by drilling and finding some oil.



DV: But it is a good time. You mentioned the gas price being good but also the oil price is good.



CP: The oil price is sensational at the moment. I dont believe it could stay up there but most of the economics that we have done on the North Falkland Basin have been on the level of $16.00 oil or $20.00 oil. Of course, today, we are looking at the high $40s. So it would be extremely possible, really, to find something. But even at $25.00 oil, its very profitable.



DV: So, whats the next step then?



CP: We really have to make a decision as to whether or not we are going to farm out these other partners. We are talking to a number of companies who are looking at the 3D data now that its been completed. Or, of course, we have to consider whether or not we should raise money in the market ourselves. The market is very strong at the moment and a lot of our shareholders are saying that they would like us to that. We have some decisions to make over the next sort of month or so as to what is going to be the best route for shareholders to take. One way or another, what we are hoping to do is to drill sometime next year.

Desire Petroleum Completes Interpretation of Seismic Survey
Desire Petroleum 11/9/2004
URL: http://www.rigzone.com/news/article.asp?a_id=17909
Desire Petroleum reports that the interpretation of both the fast-track and final-processed data from the 3D-seismic survey over Tranches C & D in the North Faukland Basin has been completed. In addition to the new 3D-data, the previously acquired 2D-data was incorporated in the interpretation where no 3D-data were available.

The interpretation included analyses of various seismic attributes as well as a geological study. All of the processed data proved to be of excellent quality and the new interpretation largely confirms the new geological model proposed by the Company. In addition, other, new prospects have been identified associated, in particular, with well-defined alluvial deltas and fans.

Within the area covered by the 3D-seismic a number of prospects have been identified. Of these, at least six are large enough to contain economic accumulations of oil in the range 100-1000 million barrels. These six are in addition to those prospects already delineated by the 2-D seismic outside the area covered by the 3D-survey.

One of the features of the 3D-seismic has been the presence of Direct Hydrocarbon Indicators (DHI), in particular, there are considerable indications of the presence of natural gas as well as oil. Considerable volumes of gas were encountered by the first well drilled by Shell in Tranche B but the well was not tested because, at that time, the value of the gas was too low to be economically producible in an area as remote from markets as the North Falkland Basin. However, since that time, the price of gas (along with oil) has risen sharply and new technology, such as gas-to-liquid (GLT) in which diesel fuel is produced from natural gas, have been developed. As a consequence, the Board commissioned a scoping study on the economics of gas production which has shown that, at prices well below current levels, gas accumulations would be economic given a field equivalent in size to a 300 million barrel oil field. Several of the prospects identified to date match this requirement. It follows that natural gas can now be added to the economic prospectivity of the North Falkland Basin.

A number of parties interested in farming into Tranches C & D are now examining the interpretation as well as conducting interpretations of their own. Hopefully, these will lead to Desire Petroleum concluding a successful farm-out leading on to exploration drilling of the most attractive prospects.

A positive write up also in the FT newspaper. 20% so far. How do u see the price and volume developing for the rest of the week?

Nice finds, Marky. If the oil is there then we could be looking at 8 - 10 fields at up to 1 billion barrels in each.

THIS WILL SOON REACH 100P BY END OF YEAR

Well done to any on this stock.

Great result so far!

Is there any relationship between DES and FOGL?

A lot of these oil exploration companies seem to be inter-related to some degree. FOGL is well up today. Just wondered if it's just coat tails effect or if it's more sustantial reasons.

DES and FOGL are inter-related as they are all involved in Falklands oil.

60p tomorrow


09 November 2004
The Board of Desire Petroleum is pleased to announce that the interpretation of
both the fast-track and final-processed data from the 3D-seismic survey over
Tranches C & D has been completed. In addition to the new 3D-data, the
previously acquired 2D-data was incorporated in the interpretation where no
3D-data were available.

The interpretation included analyses of various seismic attributes as well as a
geological study. All of the processed data proved to be of excellent quality
and the new interpretation largely confirms the new geological model proposed by
the Company. In addition, other, new prospects have been identified associated,
in particular, with well-defined alluvial deltas and fans.

Within the area covered by the 3D-seismic a number of prospects have been
identified. Of these, at least six are large enough to contain economic
accumulations of oil in the range 100-1000 million barrels. These six are in
addition to those prospects already delineated by the 2-D seismic outside the
area covered by the 3D-survey.

One of the features of the 3D-seismic has been the presence of Direct
Hydrocarbon Indicators (DHI's), in particular, there are considerable
indications of the presence of natural gas as well as oil. Considerable volumes
of gas were encountered by the first well drilled by Shell in Tranche B but the
well was not tested because, at that time, the value of the gas was too low to
be economically producible in an area as remote from markets as the North
Falkland Basin. However, since that time, the price of gas (along with oil) has
risen sharply and new technology, such as gas-to-liquid (GLT) in which diesel
fuel is produced from natural gas, have been developed. As a consequence, the
Board commissioned a scoping study on the economics of gas production which has
shown that, at prices well below current levels, gas accumulations would be
economic given a field equivalent in size to a 300 million barrel oil field.
Several of the prospects identified to date match this requirement. It follows
that natural gas can now be added to the economic prospectivity of the North
Falkland Basin.

A number of parties interested in farming into Tranches C & D are now examining
the interpretation as well as conducting interpretations of their own.
Hopefully, these will lead to Desire Petroleum concluding a successful farm-out
leading on to exploration drilling of the most attractive prospects.

I reckon there will be another surge tommorrow for sure and by close Fri it will have gone 80p+ as more and more take whats happened in.
This isnt just a maybe, its a fact and its happened when oil is at its highest point and likely to stay in the 40+ per barrel range.

Some may think they've missed the boat but imho that will prove to be a nonsense when we gaze back at the stock price in a months time; I think it will be approaching 2 by year end BUT maybe a LOT higher.
woftm

So will it take over night lookers to break the deadlock that existed towards the end of the day...? Maybe its cooled off?

thanks to markymar and others for all the effort covering this stock
i have had an interest in desire since early 2002.
with all the positive newsflow around at present, if correct the potential
is huge,any views how high it can go and timescale of partnering ???

regards HUSTLER

Well done, Hustler, for getting in at a very good price. As for the future price of Desire, well, that's anyone's guess but in '98 the share price rose to nigh-on 5 per share.

I for one am of the frame of mind that Desire should go it alone in the forthcoming drilling in tranches C & D.

Let's face it - we have a potential multi-bagger here, yes, another Cairn Energy. A lot of people scoff at the possibility of vast amounts of hydrcarbons in the North Falklands Basin but they all have their own "ajendas" to look after. If Hubbert's Theory of Peak Oil is proven correct, we are looking at Peak Oil very, very soon, (2008). We, (and I mean globally), cannot change our way of lives overnight to the likes of hydrogen fuel cell powered cars - because that technology is not yet available and indeed, may not be for a good number of years to come.

Following on from the 3-D interpretation we now know that vast amounts of gas appear to be available; just as well for the UK as we are so dependant on gas for heating our homes. The North Sea is depleting at the rate of 6% per annum, we need an alternative source and the North Falklands Basin is looking highly likely to be that alternative.

Have a nice day.