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

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

Hi all

markymar, berlingo, captguns, luckyswimmer, newcomers

DES not been doing very much of late. The support is at about 0.2800p at the moment, resistance is just above. The 200 day moving average is also just above, the 10 day moving average has just started to move up again. All things being well the support will be good at 0.2800p DES should then move up towards the 200 day moving average. If berlingo is correct then DES could easily make much beeter gains.





Good Luck All

Eddie

Hi all

Looks Like DES is making progress.


Desire Petroleum PLC
06 March 2006


Desire Petroleum plc
('Desire' or 'the Company')

EIA Update

The Company reports that a four-man team has recently completed a successful
visit to the Falkland Islands during which the Environmental Impact Assessment
(EIA) for drilling in Tranches C and D in the North Falkland Basin was
presented, as required by Falkland Islands Law, at a well-attended public
meeting in Stanley. The EIA now requires approval by the Falkland Islands
Council's Executive Committee.

The approval of the EIA is an essential step in progress towards further
drilling in Tranches C and D. All other preparations for further drilling are
now well-advanced and the Company plans to be in a position to commence drilling
immediately a suitable drilling rig becomes available.

The rig market continues to be very tight and the Directors believe it may be
some time before it slackens. The Company is currently pursuing a number of
options for securing a rig, although timing remains uncertain. However, by
making all possible preparations now, the Company will be in a position to begin
drilling should a rig suddenly become available at short notice.

The Company has also submitted site survey proposals at nine locations to the
Health and Safety Executive (acting on behalf of the Falkland Islands Government
) for comment. It is expected that three of these will be drilled once the
Company procures a rig.



This information is provided by RNS
The company news service from the London Stock Exchange


Good Luck All

Eddie

Off topic, but interesting new technology that could be used.
Gas maybe the 2nd. prize but a closer 2nd in the future.

US gas-to-liquids technology outfit Syntroleum has signed a letter of intent to form a joint venture with Dutch floater specialist Bluewater Energy Services to build the worlds first air-based GTL plant on an offshore floating production storage and offloading vessel.

The purpose of the 50/50 joint venture is to develop, construct, own and operate a fleet of GTL/Oil FPSO vessels.

The companies are working together to identify projects that will allow the joint venture to participate in the upstream development of oil and gas reserves and the downstream processing of those reserves at offshore locations.

A detailed feasibility study conducted by the companies has addressed a design of up to 17,000 barrels per day of Fischer-Tropsch products, 40,000 barrel per day of crude oil, and 10,000 barrels per day of condensate on a FPSO vessel, which would include around 2.3 million barrels of storage capacity.

The GTL/Oil FPSO study follows Syntroleums work with its GTL barge concept for shallow water.

The terms of the joint venture state that both Bluewater and Syntroleum will contribute equity to the financing of the first vessel. Together, they are identifying equity partners to participate in development of this business model and the financing of the first GTL/Oil FPSO.

The formation of the joint venture is subject to negotiation and execution of definitive agreements.

I believe this is an FPSO + Drilling capability
http://www.oilport.net/news/article.asp?Id=4866

Technology group Sevan Marine has closed a private placement of 43 million new shares to raise NOK 1,550 million (US $230 million) for a new Sevan Drilling subsidiary.

Sevan Marine said the new share placing saw strong demand from both international and Norwegian investors keen to become shareholders in its new Sevan Drilling unit.

Chief executive Jan Erik Tveteraas says the funding will now allow the company to move ahead with construction of the first Sevan Drilling unit, based on its circular Sevan Stabilised Platform technology.

http://ogj.pennnet.com/articles/article_display.cfm?Section=ONART&C=TOPST&ARTICLE_ID=249644&p=9

excellent post capt.,and exactly the sort of thing phipps was talking about recently when des had the 4 man team down in the islands.

ENVIRONMENTAL IMPACT ASSESSMENT (EIA) -
PRESENTATIONS GIVEN TO PUBLIC MEETING IN PORT STANLEY ON FEBRUARY 22 2006

http://www.desireplc.co.uk/presentations.php

http://www.sartma.com/art_2682.html

Falklands : What The Oil Industry Means to the Falklands
Submitted by Falkland Islands News Network (Juanita Brock) 09.03.2006 (Current Article)
The BBC's Deborah Vogle quizzes Sam Moody of Rockhopper Exploration.


WHAT THE OIL INDUSTRY MEANS TO THE FALKLANDS


A Report for BBC World Service by Deborah Vogle (DV) 07/03/06


In a Radio 4 interview, when Cllr. Summers talked about strained relations with Argentina he mentioned problems over the disruption of the fishing and tourism industry and also into interference with Oil Exploration. But that hasnt seemed to have affected Rockhopper Explorations latest seismic survey to the North of the Falkland Islands.

Using a new exploration technique, the surveys just been successfully completed. The Company will spend the next three to four months analysing the data. Rockhoppers Managing Director, Sam Moody (SM), has been talking to Ben Koen (BK) to tell him what the hopes are at this stage.


SM: We would argue that the whole of the Falklands exploration area represents, really, a major untested oil plane. And, a significant part of that clearly is in the North Falkland Basin. You have had six wells drilled, five of which had oil or gas shows, one had oil at the surface. So, in the North Falkland Basin you are exploring an area where a huge amount of work has already been done and which is a proven working hydrocarbons system. It could be a significant discovery if it comes in.


BK: Now, oil companies have come and gone from the area in the past most recently one departed in 1999. Is the fact that they are back and showing interest again all to do with oil prices now? shell ?


SM: I think if you look at the oil price in 1998 when the last round of drilling happened, it was probably around the $10 $12 Dollar mark. Clearly its much higher today. Its been nearer to $60.00. When you get a high oil price, it makes exploration in remote areas or exploration in areas in which its difficult to operate much more attractive because any discovery becomes significantly more valuable.


BK: How big an impact would you think this would have in the Islands?

SM: I dont think its anything the Islands cant handle. Its been done before with very large companies being involved and I think it worked very smoothly. In terms of the impact of the actual drilling you only need to look at the Environmental Impact Assessment submitted by Desire (Petroleum) to understand how much work is being put in by the oil companies to ensure people understand what is going to happen. Were there a discovery, it would really be up to the Islanders to decide what would happen after that in terms of how much they allow to happen onshore and what they decide would happen offshore.


BK: Obviously oil prices can go down as well as up. How sure can you be that they will remain stable enough that this area can stay economically viable?


SM: I am not in the business of predicting oil prices but most commentators dont seem to think it will fall back below the $35.00 to $40 a barrel range. And, at that sore of level in the relatively shallow waters of the North Falkland Basin, you do not need to find a huge accumulation to make it worthwhile. You could probably do it for somewhere in the region of 50Million Barrels, which is much smaller than a number of prospects we have mapped.