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

Time will tell Lucky

HYDROCARBONS DAILY RECORD (27/04/06)


By J. Brock (FINN)


At 1800hrs LMT on Thursday, 27 April 2005 Light Sweet Crude was $70.97 and Brent Crude was $70.91 per barrel. This is the fourth straight day of decline in crude prices.



Contributing factors include the partnership between the Peoples Republic of China and Nigeria, announced in Abuja today. China wants to look for hydrocarbons in the Niger Delta and as a sweetener will put $4Billion into Nigerias infrastructure.


Prices are kept high because of the tight control on supply by OPEC Countries. Demands on the limited supply are due to high fuel consumption in the United States as well as in emerging economies like that of the Peoples Republic of China.

Decreased demand for heating products in the Northern Hemisphere during the warmer months will benefit supply.


LOCAL IMPLICATIONS:


Though it is coming to the winter season, the smaller population in the Southern Hemisphere will not put as great a demand on reserves as does the population in the Northern Hemisphere.




Purchase prices of bulk fuel for heating remain a concern locally as price increases are reflected at the retail end. The knock-on affect is higher prices not only for petroleum products but on the services those products help to support.



FOGL Progress Report - Wednesday 26th April 2006


GSI Gulf Pacific is on location, on the FOGL licence areas and has acquired a total
of 137km of 2D seismic since the last report was issued on 3 April 2006. This makes
a total of 12,630km since the beginning of the Phase 2 Survey in June 2005.

Desire are right with rig owners making bumper profits.


Pride soars on strong rig market

By Upstream staff


US driller Pride International has reported a preliminary net profit of $70.5 million, or $0.40 per share, in the first-quarter of 2006.

The increase over the net profit of $18.3 million, or $0.12 per share, that it made in the same period the previous year was due in part to gains on the sale of assets of about $17.5 million.


Operating profit was up by about 85.7% to $129.8 million while revenues for the quarter were also up from $466.2 million in 2005 to $566.9 million in 2006.


Pride said that dayrates increased for all of its rig types and operating regions, particularly for its semi-submersibles in West Africa and the Mediterranean Sea and for jack-ups in the US Gulf of Mexico.

Markymar,

137 kms. in 3 weeks, that's criminal I've known sea slugs travel faster.

They must have some problems, or some real bad weather.

Morning Capt,

Will get rowing boat out am sure you and i could shoot quicker than that!

Whats the average a boat can shooot in a day?

Can only delay FOGL even more, they seem to be going backwards at the moment.

http://www.britishbulls.com/StockPage.asp?CompanyTicker=DES&MarketTicker=RESOURCES&Typ=S

Back to a BUY IF

Pride Fleet up date 27th April, still looking tight,lets hope a deal can be done!

http://media.corporate-ir.net/media_files/irol/72/72166/ContractStatusReport050106.pdf

On long lines (24 hours shooting) around 220 - 230 kms.
It could go as high as 240 kms, but you would need a shorter record length or a longer shot point interval.

The usual shooting speed is around 4.6 - 4.8 knots. (@ 9 kms. ish. an hour)

Cheers Capt,

Here is another one with bumper profits today.

Fred Olsen back in black

By Upstream staff


Norwegian oil driller Fred Olsen Energy today posted a bigger-than-expected surge back into profit for the first quarter and said it expected the offshore market to remain strong.

Earnings before interest and tax increased to Nkr268 million ($42.80 million) from a loss of Nkr27 million in the same period last year.

Analysts had expected on average an increase to Nkr219 million. Estimates ranged from Nkr154 million to Nkr255 million.

"The high demand for offshore drilling services is expected to continue during the next few years as a result of renewed focus on reserve replacement supported by high demand for oil and gas and expectations of continued high energy prices," the company said.

Olsen also said the balance between supply and demand for oil drilling units worldwide had tightened.

"This development has been reflected in significant increases in dayrates," it said.

Operating revenue jumped to Nkr936 million in the first quarter from Nkr570 million last year.

Pip Pip for now!

http://www.rigzone.com/news/article.asp?a_id=31673

Weekly Offshore Rig Review: Limited Availability
RigLogix Thursday, April 27, 2006


Worldwide offshore rig utilization inched up slightly this week as two idle rigs started new contracts and one rig went off contract. The worldwide utilization rate now stands at 84.5%, which is the highest utilization rate seen this year, and surpasses peak utilization for all of last year as well.

With current offshore rig utilization pushing new highs, we'll take a look forward at future utilization by examining the

fleet availabilty with in the jackup, semisub, and drillship segments.

Jackup Availability
Among jackup rigs, current utilization stands at 87.2% with 341 of 391 jackups under contract worldwide. Looking forward to the rest of 2006, 75% of the available jackup rig time has already been contracted, and only 25% remains. Looking further out, for 2007, 46% of the available rig time for currently active jackups has already been contracted out, leaving about 55% of the jackup fleet's time still available for new contracts in 2007. And for 2008, only about 23% of available rig time for currently active jackups has been contracted.

Semisub Availability
Among semisubs, 143 of 165 rigs are under contract, providing current utilization of 86.7% worldwide. For the rest of 2006, those 165 semis have about 86% of their time already locked into contracts, leaving just 14% availability among semisubs for the rest of the year. For 2007, about 73% of the rig time for currently active semisubs has been locked into contracts. While in 2008, availabilty finally reaches above 50% for semisubs, with only about 48% of the rig time for active semis having been contracted.

Drillship Availability
Among the world's 38 drillships, 29 are currently under contract for a worldwide utilization rate of 76.3%. During the rest of 2006, among the world's leading drillship contractors whose ships account for 32 of 39 active rigs (82% of the fleet), 90% of available rig time has been contracted. Looking at the availability of those drillships in 2007, more than 92% of the available drillship time is already under contract, with the remaining time representing primarily maintenance downtime. Even for 2008 84% of the available rig time for these drillships is already contracted.

Overall Availability
Looking at the overall picture for MODU availability, the rest of the year has little room for new rig contracts, with 78% of available rig time already contracted. As the year progresses, 9 new build jackups are set to be delivered, which will help to provide some additional rig time, but 5 of those new jackups already have at least one contract set to start when they leave the shipyards. Another 21 jackups will be delivered in 2007, and only 3 of those rigs have contracts setup for when they leave the yards, so there will be even more jackup availabilty in 2007.

In the fleet segments with the least availability, semis and drillships, only one new drillship is set to be delivered late next year, which will have little effect on the lack of availability. An additional semisub is also scheduled to be delivered late next year, but it is already contracted.


Conclusion
The worldwide offshore rig fleet is pushing new high levels of utilization, and a majority of the fleet's available time is contracted out through 2007. With 30 new jackups being delivered over that time period, some new availability will be added, but only within the jackup fleet, which has the lowest level of commited rig time among the three major MODU types. The tight market amongst drillships and semisubs will persist into 2008, when 11 new semisubs and 3 drillships are set to be delivered. But, with many of those rigs already landing contracts or not even beginning construction until long-term contracts were already in place, available rig team will continue to be limited.

Nice article about what is going on offshore.

http://ogj.pennnet.com/Articles/Article_Display.cfm?Section=ARTCL&ARTICLE_ID=253486&VERSION_NUM=2&p=9

Thanks for that Capt good read.

HYDROCARBONS DAILY RECORD (28/04/06)

By J. Brock (FINN)


At 1800hrs LMT on Friday, 28 April 2005 Light Sweet Crude was 91Cents higher to $71.88 and Brent Crude gained $1.11 to $72.02 per barrel. Price rises broke four straight days of decline.



Contributing factors for the rise in prices per barrel include nervousness over Irans reluctance to comply with IAEA requests to co-operate over its nuclear enrichment programme. Irans nuclear enrichment programme for what they class as electric power is again a subject that will be brought up by the U. N. Security Council in due course

The President of the Peoples Republic of China, Mr. Who Jin Tao, has been visiting Kenya and has gained permission to search for hydrocarbons in that country. Also looking for hydrocarbons in Kenya is Global Petroleum. That company is also a partner with Falkland Oil and Gas (FOGL)


FOGL's founder shareholders were The Falklands Islands Company Limited (a subsidiary of Falkland Islands Holdings plc), Dampier Oil Limited (a subsidiary of Global Petroleum Limited) and RAB Special Situations L.P (a fund managed by RAB Capital plc).


Global Petroleum expects to have the deep water vessel, Chikyu, in October to begin drilling off Kenyas eastern coast.

LOCAL IMPLICATIONS:


Good contacts and partnerships should help the exploration efforts in the South Falkland Basin and the North Falkland Basin. FOGLs tranches in the South Falkland Basin would suit a deep water vessel, as the water is a good 100 to 300 metres deeper than it is in the North Falkland Basin. A rig is needed desperately in the North Falkland Basin if we are to find the reserves that the seismic tells us are located under very thick source rock.

There is no firm reported price for Light Sweet Crude or Brent Crude at the time of this writing. Prices will be quoted on Monday.


HYDROCARBONS WEEKEND RECORD (29 AND 30 APRIL 2006)
By J. Brock (FINN)

Reporting on barrel prices for Light Sweet Crude and Brent Crude will continue in Mondays record. At present, there are different prices coming from various sources. When the reporting stabilises the figures will be given.

Contributing factors for per barrel prices include nervousness over Irans reluctance to comply with IAEA recommendations to the UN Security Council and outright defiance of any sanctions that could be placed against that country. Iran claims the nuclear enrichment programme is for power generation and not for military purposes. Another factor is Nigerias 20% cut in production due to recent terrorism near an oil refinery in the city of Werri in the Niger Delta. Though the blast caused minimal damage to the facility, fears are that the rebel group wanting a separate state in the Niger Delta will step up their violence in the area.

A third contributing factor is this weekends summit in Havana of three left leaning governments in Latin America. The resulting trade pact is called the Bolivarian Alternative for the Americas. President Castro of Cuba hosted President Alvo Morales of Bolivia and President Hugo Chavez of Venezuela. Negotiations on several trade subjects moved forward, including some for the hydrocarbons industry. Venezuela will supply Bolivia with oil at below market value prices and Bolivia will supply Venezuela with natural gas that it has in abundance. It is not yet known if this trade deal will affect US and UK oil interests in Latin America but trends will be monitored. President Chavez of Venezuela used the Vince Lombardi philosophy when summing up the summits affects by saying (translated) the best defence is a good offence.

Locally there is little affect on prices as Stanley Services buys fuel at the going rate when supplies run out. Any price fluctuations here will depend on what price the fuel is bought. It is hoped that enough supply can be obtained to wait until bulk fuel prices go down. However, this is thought to be unlikely when crud prices are fluctuating upwards.

HYDROCARBONS DAILY RECORD (01/05/06)

By J. Brock (FINN)


At midday Light Sweet Crude was quoted at $72.28 per barrel with Brent Crude at $73.03. This reflects price rises over the week end. Prices at 1800 LMT reflected a further rise with Light Sweet Crude at $73.70 and Brent Crude at $73.89. The price reductions during four days last weeks have been eaten up by recent events in countries where oil is in production.


Contributing factors include nervousness over a fire at an oil refinery in Italy and a 20% cut in production in Nigeria due to terrorism in the oil-rich Niger Delta.


Reported sabre rattling by the United States over Irans plans to continue with its nuclear fuel enrichment programme also feature in the upwardly fluctuating prices per barrel of Brent Crude and Light Sweet Crude.


Potentially large reserves of oil and gas have been found in Afghanistan that could be the focus of seismic exploration activity in the near future. Given the trend for oil companies to exploit known reserves, it is possible that after all the Afghan data is collected and analysed, there will be a lull in activity.



A bit closer to home, Bolivian President, Alvo Morales has nationalised his countrys gas reserves. Reports say that the military has seized privately owned facilities. Updates will be placed in Tuesday's Hydrocarbons Daily Record.

LOCAL IMPLICATIONS:



Locally Councillors asked U.K. Defence Minister Adam Ingram about security for oil rigs in the North and South Falkland Basins. According to Cllr. Mike Summers, there are marine assets in the area and a risk assessment needs to be done to see what those assets are. He went on to say that it would be up to the MoD to protect the assets.



Councillors pressed upon Mr. Ingram that it was vital for a secure and prosperous Falklands economy to ensure that our assets are protected. It was, they said, in Britains best interests to have a viable economy in the Falklands and to keep the energy supplies safe. The Defence Minister agreed with Councillors and accepted their argument.


Protection of the Falklands Maritime assets lessens the risk factor for exploration and exploitation of hydrocarbons in the North and South Falkland Basins.

http://www.falkland-malvinas.com/Detalle.asp?NUM=7795

Falklands-Malvinas
Tuesday, 02 May


UK Armed Forces minister visits Falklands



Falkland Islands defence capability, the 25th anniversary of the 1982 South Atlantic conflict and hydrocarbons were among the issues discussed Monday between visiting British Armed Forces minister Adam Ingram and elected Councillors in Stanley.


Minister A. Ingram MP
The high profile presence of Minister Ingram, following shortly on the visit of the Chief of General Staff, General Sir Michael Jackson and other military high officials must be seen as a demonstration of the seriousness with which the United Kingdom takes the defence of the Falklands, said Councillor Mike Summers.
The right assets in the right quantities to provide for an adequate defence of the Islands and with no plans for any reductions in these assets, was the message conveyed by the visiting military reports the Falkland Islands local radio station.

Councillors also took up the issue of hydrocarbons and potential security matters if drilling finally begins.

If and when drilling takes place there will be marine assets in the vicinity of the Falklands and a risk assessment would be necessary, indicated Councillor Summers who added that it would be up to the UK Ministry of Defence to provide security for any marine assets.

Councillors in the meeting with Minister Ingram insisted that it is in the strategic interests of the UK to have the Falklands as an economically prosperous country and to have secure energy assets in a more secure part of the world.

Apparently Mr. Ingram accepted the argument.

Finally Councillors also took the opportunity to discuss with Mr Ingram the 25th anniversary of the 1982 Conflict next year. Councillors intend to discuss the issue at the next public meeting.

http://www.oilport.net/news/article.asp?Id=5198

http://www.sartma.com/art_2874.html

MI 5 ed

Executive Council Report for April 2006
May 2, 2006
by H. E. the Governor Mr. Pearce

Removed temporarily by request of the Foreign and Commonwealth Office.

Good news there Caps just need news of a rig.

http://www.mercopress.com/Detalle.asp?NUM=7801

Falklands : Hydrocarbons Daily Record (02/05/06)
Submitted by Falkland Islands News Network (Juanita Brock) 03.05.2006 (Current Article)
Bolivia's take over of foreign investments in their hydrocarbons industry has contributed to the crude oil price rises.


HYDROCARBONS DAILY RECORD (02/05/06)

By J. Brock (FINN)

Prices at 1800 LMT reflected prices that had been rising all day, with Light Sweet Crude at $74.61 and Brent Crude at $74.97.

There are two main contributing factors today in that Irans stance over enriching nuclear fuel has not changed since the crisis began. Iranians claim that it is for energy generation. Russia and China would prefer the crisis to be ended by negotiations rather than UN sanctions. Iran remains defiant and claims to have further refined their nuclear fuel up from 3.0 to 4.5.


The second but by no means less significant is the Bolivian Governments take-over of foreign owned oil companies assets in that countrys gas fields. Bolivia has the second largest deposits of natural gas in South America, so the losses to foreign companies will not be minimal. In total, 56 locations were taken over, with Britains BC Group PLC, British Petroleum, Petroleo Brasilerio SA, Repsol YPF SA, Total SA and Exxon-Mobile Corp. amongst those affected.

President Morales announced the take-over a day after he returned from Cuba and an economic summit with Venezuela and Cuba. In his statement, President Morales indicated that the foreign companies were looting Bolivias assets to line their pockets and that the people of Bolivia now had total control of their own assets. It is his hope that the additional revenue would help to lift his people out of poverty.



If the people have been ripped off it could be due to insufficient foresight, research and planning on the part of the then Bolivian Government in relation to what their takings would be from their own resources. Being an economically challenged country at the time meant that foreign investors were needed to get the industry up and running. With that purpose realised, a pull-out of the foreign investors would mean a lot of work for Bolivians to meet the standards set by the industry.

LOCAL IMPLICATIONS:

It seems as though the philosophy of getting everything possible out of known reserves may work to drive up the price of oil even further, as it is evident those reserves are in politically sensitive areas. Areas where there are sabotage to oil facilities also cause the nervousness that makes the per barrel crude price go higher. It is time to have a look at exploring in less politically sensitive areas and to begin to tap the rich resources that are within them.


Exploration in the North and South Falklands Basins have uncovered vast reserves of hydrocarbons both natural gas and crude - and it is about time to find out exactly where they are by getting a semi submersible rig for the North Falkland Basin and a suitable drilling ship for the South Falkland Basin.


Were ready to go!

Transocean Fleet Update 1.5.06

http://media.corporate-ir.net/media_files/irol/11/113031/reports/050106.pdf

http://www.thisisnorthscotland.co.uk/displayNode.jsp?nodeId=149212&command=displayContent&sourceNode=150624&contentPK=14417512&folderPk=85744

WELL PROJECT-MANAGEMENT EXPERT AIMS TO REACH NEW AMERICAN PEAK

In stead of Desire representing them selfs on the PR front they have now represented by a company called Buchanan Communications to do this for them ,and this has been confirmed to me today.

http://www.buchanan.uk.com/index.html

Sounds good news to me as Desire were always very poor on the PR side of things and replying to emails.