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

Cheers Eddie for update,Aur that could of been the jinks!

There are 10 drill location now will be an intresting AGM i think!!


Hydrocarbons Daily Record (04/05/06)
May 3, 2006
by J. Brock (FINN)

HYDROCARBONS DAILY RECORD (04/05/06)

By J. Brock (FINN)

At midday Light Sweet Crude was quoted at $73.10 per barrel with Brent Crude at $73.99. Prices at 1800 LMT reflected a further decline in the price per barrel with Light Sweet Crude at $72.55 and Brent Crude at $73.51.



Contributing factors for the decline include an increase in the supply and a lessened demand for gasoline in the United States as well as a softening in the rhetoric of President Morales in Bolivia. A meeting between President Lula of Brazil, President Kirshner of Argentina, President Chavez of Venezuela and President Morales of Bolivia is to take place on Monday in order to find ways forward for Bolivia, who has a need to exact more revenue from its vast natural gas reserves the second largest in South America.



LOCAL IMPLICATIONS:



Though untapped, the potential for huge hydrocarbons reserves in the North and South Falkland Basins helps keep morale high, even though FIG are reviewing the budget. Other good news can be seen below.



26 April 2006

DESIRE PETROLEUM PLC: FINAL RESULTS

Chairman's statement

The results for the year ended 31 December 2005 are set out below. The profit shown after tax was entirely due to interest received and exchange gains. The latter resulting from your Board's decision to hold most of the Company's funds in dollars. As in previous years, overheads, which are covered by interest received, have been kept low despite the very considerable increase in activity consequent upon preparations to drill in the North Falkland Basin.

The focus of the year's activities was on preparing a three-well drilling programme in Tranches C and D in the North Falkland Basin and sourcing a suitable drilling rig to fulfil it. There is a well-publicised, world-wide shortage of drilling rigs which has severely affected the entire Industry, not least Desire. Rig-rental rates are also at historically high levels.

In view of the extraordinarily tight rig market and the major increase in costs, your Board, whilst continuing actively to secure a rig, has reviewed the Company's strategy for renewing drilling in Tranches C and D. At the moment, there appear to be two alternative options: to await a change in the rig market or to seek a partner with access to a drilling rig. As the second of these options does not preclude the first, a programme to identify and secure a suitable partner was initiated early this year (2006).

Possible partners include oil companies with long-term rig contracts or drilling companies themselves. In the past, drilling companies have not normally been interested in taking equity positions in drilling programmes except when the rig market was exceptionally weak and it was one of the few ways of utilising their hardware. However, the current, historically-high, rig-rental rates have had the effect of making many drilling companies cash-rich; this factor, together with the attraction of major multiples from successful equity participation in oil and/or gas discoveries, has caused them to take a fresh look at equity deals and a number of drilling companies are now prepared to discuss such ventures. Even so, most drilling companies do not, themselves, have spare rig capacity because most of their rigs are tied-up in long-term contracts.

Nevertheless, Desire has entered into discussions with a number of companies with rigs interested in equity in Tranches C and D. The nature of the participations under discussion may not take the usual form of industry farm-outs and your Board is considering innovative ways of structuring them. It is not yet possible to say that these discussions will be successful nor, if they are, at what date a rig will become available.

The rig market itself is likely, in due course, to return, as it has done in the past, to more normal conditions of supply and demand. Rig supply will increase as new rigs are built and demand can be expected to slacken, either because of a lack of exploration success or because major new discoveries are made. Current exploration success rates are poor world-wide and, if this continues to be the case, more rigs will become available as companies draw their exploration horns in. As a consequence of this lack of exploration success, the attractiveness of the North Falkland Basin, with its world-class source rock, is likely to increase.

Despite the lack of a rig, work has continued on preparations for the drilling programme. Peak Well Management has been appointed to oversee the programme, nine drilling locations have been selected, well designs are being finalised, initial site surveys have been carried out using the 3D seismic survey, the Environmental Impact Assessment has been submitted to the Falkland Island Government (FIG), the well tubulars and wellheads (of which there is also a world-wide shortage) have been ordered and a myriad other requirements and contracts, such as for waste disposal, helicopters, crew-change facilities, etc., are being put in place. Apart from the requirement by the UK Health and Safety Executive, on behalf of FIG, to approve the safety management system of the rig when contracted, all of the essential plans for the drilling program are well underway or in place and drilling will be able to commence as soon as an approved rig is acquired.

One strategy option, so far rejected by your Board, is that of farming-in to the existing exploration drilling programmes of other companies. Although several opportunities have been considered, none were anywhere near as attractive, either technically or in terms of potential upside, as drilling in Tranches C and D. Accordingly, the decision has been taken to conserve the Company's funds and to continue to concentrate all efforts in the North Falkland Basin.

I am very pleased to welcome Mr Edward Wisniewski to the Board. Eddie is a Chartered Accountant with extensive oil-industry experience whose contributions, both as a non-Executive Director and Chairman of the Audit Committee, have already been substantial. All of my other Board colleagues continue to play essential roles, in particular Dr Ian Duncan in his capacity as Chief Executive.

Although the past year has been a frustrating one, not least for your Board, I believe that the strategy adopted is the correct one which will, in due course, lead to a resumption of drilling in the North Falkland Basin.

Yours sincerely,

Dr Colin B. Phipps

Consolidated Profit and Loss Account for the year ended 31 December 2005

Raha predicts doubling of rig count

By Erik Means


Subir Raha, the chief executive of Indian state oil company Oil & Natural Gas Corporation (ONGC), said he expects the offshore drilling rig count in India to nearly double over the next five years as the world's second-most populous nation strives to meet its ballooning energy needs.

Today we have a fleet of about 30 rigs jack-ups, floaters or combined and the total number of rigs in India offshore (is) something like 45 or so, Raha said.

What I see in the next three to five years with new finds being brought to production, new blocks for exploration I suppose that the rig count should (increase by) about 35 or more from the present 45, he told UpstreamOnline.com during the Offshore Technology Conference in Houston.

Raha continues to tour the world in search of partnership deals with oil companies and service contractors.

Transocean taps in to rich seam

By Upstream staff


Global rig contractor Transocean today reported a larger profit for the first quarter, as strong customer demand bolstered both utilisation rates and daily rig rates.

The company posted a net profit of $205.7 million or 61 cents per share, compared with a year-earlier profit of $91.8 million or 28 cents per share.

The first quarter of 2006 included after-tax gains of 12 cents per share for asset sales. Transocean forecast revenue growth throughout the rest of the year, but said such growth in the second quarter would be more than offset by higher operations and maintenance expenses from increased out-of-service time for rigs.

Second-quarter operations and maintenance costs are expected to exceed those of the first quarter by up to $75 million, the company said. However, those expenses should decline in the second half of the year, Reuters reported.

Here is one for you Capt

Woodside set for second Kenya wildcat

By Iain Esau


Australia's Woodside Petroleum has committed to drill a second wildcat on its deep-water frontier acreage off Kenya.

Woodside and its partners UK-based Dana Petroleum and Aussie minnow Global Petroleum have decided to enter the "first additional exploration phase" of their Block L-7 production sharing contract, which calls for one well to be drilled before June 2008.

Global will be fully carried through the first exploration wells in each of blocks L5 and L7 and retains 20% equity, leaving Woodside with 50% and Dana with 30%.

The first well is due to spud in Block L-5 this October after the board of the Japanese Agency for Marine-Earth Science & Technology (Jamstec), owner of the drillship Chikyu, approved the rig contract with Woodside.

http://www.internationalpavilion.com/Houston_Theatre_pres_06/Falklands_06_files/frame.htmCheck the link out

May 2006 - Desire moves to Phase 2 on their PL003 and PL004 licences
Following on from Rockhoppers farm-in to these licences (also known as Tranches C and D), Desire has now moved to Phase 2 of the licences. During this Phase, which runs for 7 years, they must drill one well on each licence.

May 2006 - Changes to PON 1
Some minor changes have been made to PON No. 1, Record and Sample Requirements for Surveys and Wells. These changes require licensees to supply geophysical data in a new specified format if requested to do so. See the Downloads section for details.

April 2006 - Falklands at AAPG
In April the Falkland Islands Government exhibited at the Annual Convention of the American Association of Petroleum Geologists. This years convention, held in Houston, was a success for the Islands, who participated in the International Pavilion for the 11th successive year. The Falklands booth was a busy place of work, with numerous high-calibre visitors from international exploration companies. The Government also again participated in the International Pavilion Theatre, presenting a talk on exploration opportunities in the area. A copy of the presentation can be viewed at AAPGs on-line International Pavilion, at
http://www.internationalpavilion.com/Houston_Theatre_pres_06/Falklands_06_files/frame.htm

Hi all

Oh well DES didn't go up today.

DES is has been following a rising trend line since 08/12/05, the trend line is still in place but todays close is sitting just above the trend line. DES has now moved back down under the 200 day moving average. If the rising trend line is to stay we will have to see support soon ie tomorrow. DES has gained 35.70% since 08/12/05, so if the market is testing the trend line, this should let us know how the market intends to continue. Todays candle shows relativly low selling presure as it only has a small body (not much price movement). All being well the bulls will be out in support. I have put the zig lables on the chart, if you draw a line from Decembers low you up through the other low points you will see the trend line.





Good Luck All

Eddie

Hydrocarbons Daily Record (05/05/06)
May 4, 2006
by J. Brock (FINN)

HYDROCARBONS DAILY RECORD (05/05/06)



By J. Brock (FINN)



At 1800 LMT on Thursday, 04 May 2006, prices reflected a further decline in the price per barrel with Light Sweet Crude at $69.94 and Brent Crude at $70.29. This reflects the second day of decline.



The decreases come despite Irans firm stance against any UN Sanctions that may arise. Iran has been told by the UN Security Council that it has until June to freeze its uranium enrichment programme. This lessens any immediate nervousness of retaliations on either side.



The fear factor also seems to have diminished regardless of Bolivias nationalisation of its natural gas facilities. A meeting between Venezuela, Bolivia, Argentina and Brazil, that took place on Thursday, may take the sting out of President Morales actions. Brazils oil company, Petrobas, has said that it might not go ahead with a planned natural gas pipeline extension if there is not a successful outcome on Monday. Petrobas stands to lose $1.5 Billion in the long-term if Bolivias sanctions take affect.



The publication on http://www.foreignpolicy.com of an article by Thomas Friedman entitled The First Law of Petropolitics has helped to set the industry at ease and could also have helped in dropping the prices per barrel we have seen recently. Mr. Friedman asserts that as the price of hydrocarbons increase, democracy and freedom decline they seem to run away from each other. President Chavez, he says, wouldnt be telling the oil companies to go to hell if the price per barrel were $20.00. $70.00 makes it a much more attractive option, with basic freedoms for the people being lost as the price of hydrocarbons increase. He points out that the most democratic of countries in the mid-east are the ones with a minimal oil industry.



LOCAL IMPLICATIONS:



The feel-good factor still abounds with the knowledge that any day now a suitable rig could be found by Dr. Colin Phipps of Desire Petroleum Plc. This doesnt mean that we will immediately begin to pump oil as it could take anywhere from 5 to 15 years after viable reserves are found.



New from: http://www.falklands-oil.com

May 2006 - Desire moves to Phase 2 on their PL003 and PL004 licences
Following on from Rockhoppers farm-in to these licences (also known as Tranches C and D), Desire has now moved to Phase 2 of the licences. During this Phase, which runs for 7 years, they must drill one well on each licence.

May 2006 - Changes to PON 1
Some minor changes have been made to PON No. 1, Record and Sample Requirements for Surveys and Wells. These changes require licensees to supply geophysical data in a new specified format if requested to do so. See the Downloads section for details.

April 2006 - Falklands at AAPG
In April the Falkland Islands Government exhibited at the Annual Convention of the American Association of Petroleum Geologists. This years convention, held in Houston, was a success for the Islands, who participated in the International Pavilion for the 11th successive year. The Falklands booth was a busy place of work, with numerous high-calibre visitors from international exploration companies. The Government also again participated in the International Pavilion Theatre, presenting a talk on exploration opportunities in the area. A copy of the presentation can be viewed at AAPGs on-line International Pavilion, at http://www.internationalpavilion.com/Houston_Theatre_pres_06/Falklands_06_files/frame.htm

This link below is a better link if you have power point a lot clearer

http://www.internationalpavilion.com/houston_theater.html

High Oil Prices Mean High Profits For The Oil Majors But Reserves Replacement Remains An Issue Going Forward
Despite ongoing problems in Nigeria and the disruption caused by last years hurricane season, Royal Dutch Shell has posted a resolutely solid set of results, beating analysts expectations for the formerly troubled oil giant. Shell made a profit of US$6 billion (3.31 billion) in the first three months of the year - which as journalists like to point out amounts to 1.5 million an hour - up 12 per cent from the same period last year and nearly 10 per cent higher than analysts' estimates.

High oil prices mean the exploration and production business reported earnings of US$3.7 million, 27 per cent higher than a year ago, despite lower volumes and higher costs. Production came in at 3.7 million barrels of oil equivalent per day (boepd), three per cent lower than the same period last year, knocked by the shut-in of 165,000 bpd in Nigeria and the aftermath of that devastating hurricane season.

This shortfall is being addressed: the first well from Phase III of the Champion West field in Brunei has started production, the deepwater Erha field started production in April and will ramp up to 150,000 boepd (with the precious barrels beyond the reach of the militants) and the Mars platform in the Gulf of Mexico is due to start production in this month.

The company plans to expand its upstream base, with capital spending in 2006 of US$19 billion and of US$21 billion in 2007. It intends to increase output to 3.8 to 4 million boepd in 2009. It also intends to greenlight projects that should open up 20 billion barrels of oil equivalent by the end of the decade.

These resources amount to around one-third of the companys discovered resource base but include unconventional hydrocarbons, such as oil-sands and gas-to-liquids projects, which may not qualify as proved oil and gas reserves under the Securities & Exchange Commission rules (and this is a company still emerging from the reputation-busting reserves fiasco of 2004) this means the company may not meet its 100 per cent SEC proved reserves replacement ratio over 2004-2008.

There are other factors that may see the company miss its reserves replacement target. The industry is seeing a very tight market for materials and contract rates, said chief executive Jeroen van der Veer. Our requirement for competitive returns means that we will probably hold back some of our longer-term projects, until the supply and contracting environment cools down. That in turn makes achieving our SEC proved reserves replacement forecast less likely than it was.

Shells numbers come at the end of a very strong results season for the worlds oil majors: this isnt difficult given the current price environment. ExxonMobil, the largest publicly-traded company in the world, reported first quarter earnings, excluding special items, of US$8.4 billion, up 14 per cent on the prior year figure, with cash flows amounting to US$15 billion. Production was up by 5 per cent.

BP reported a 4 per cent dip in first quarter profits as a result of those hurricane-related outages. First quarter profits came in at 3 billion on reduced output of 4 million boepd. Stripping out one-off costs, however, BP's underlying profit for the quarter was US$5.282bn, up from $4.96bn in the same period of 2005 and better than analysts' forecasts of $5.21bn. Capex for 2006 is expected to come in at US$15 billion.

Total, the world's sixth-largest oil group by market value, reported a 16 per cent rise in first quarter profits, slightly beating expectations, with an adjusted net profit of 3.38 billion euros (2.32 billion).

The oil majors have all been busy buying back shares and dividends are on the rise. But investors - and hard-pressed consumers feeling the pain at the petrol pump - will also be keen to see these corporate behemoths investing for the future: its getting harder, and more expensive, to replenish the barrels pumped out of the ground. As Shells results make clear, replenishing those stocks are going to take the oil majors into deeper waters, harsher environments and into non-conventional resources such as heavy oil. And thats going to take a lot of investment now to bring those barrels onstream five years out.

Hi all

Thanks for the updates Markymar.

DES managed to stay above the rising trend line today. The market opened low, the bulls then pushed DES back up to yesterdays close. This created a bullish pattern called meeting lines. Britishbulls.com have some more reading on this, there is also a Buy If tag. This will need confirmation. All is looking good, I think DES will get the support, lets hope so. The fibonacci line is also being tested.




Good Luck All

Eddie

Thank you for up date Eddie,

Falklands : Hydrocarbons Daily Record (06/05/06)
Submitted by Falkland Islands News Network (Juanita Brock) 06.05.2006 (Current Article)
President Morales of Bolivia will be in Vienna next week to meet with European Oil Authorities and Companies.


HYDROCARBONS DAILY RECORD (05/06/06)



By J. Brock (FINN)



At 1800 LMT on Friday, 05 May 2006, prices reflected a slight rise in the price per barrel with Light Sweet Crude .25 Cents higher at 70.19 and Brent Crude .66 Cents higher at $70.95. This reflects cautious patience in analysing indicators that normally would cause nervousness.



Contributing factors seem to be the sabre rattling between the US and its allies through the UN Security Council and Iran over uranium enrichment. Iran has been firm in its denial of accusations that the enrichment is for Military means. The naturally reticent Iranians, playing their cards close to the chest, remain firm in their argument that enrichment is for power generation and nothing more. Even though Iran has offered the IAEA access for surprise inspections, the US views Irans nuclear fuel enrichment programme with suspicion.



In South America there was an impromptu meeting between the presidents of Argentina, Brazil, Bolivia and Venezuela on Thursday. President Kirchner of Argentina and President Lula of Brazil advised Bolivias President that unpalatable contracts will not do Bolivia any good. They did, however, agree that it was good that Bolivia took control over its natural gas reserves. Analysts say that unpalatable contracts lead to the decline in Venezuelas production from 3.3 Million barrels per day to approximately 2.5 Million barrels per day. The take-over has already put on hold a planned expansion of a gas pipeline by the Brazilian Oil Company, Petrobas and it is possible that if the contracts are too harsh other investment will be sized down or cut off completely.



Next Week President Alvo Morales of Bolivia will travel to Vienna, where he will meet with oil industry officials in the European Union. With dialogue he may be able to allay fears that those contracts will not be workable. We wait and see.



LOCAL IMPLICATIONS:



Local companies with oil interests are looking with caution on the events in South America. It is hopeful that contracts for Bolivian Gas will follow along professional, rather than political lines, in that the industry should help to offer alternatives as well as governments. A political solution may not benefit the industry or the people of Bolivia, who desperately need more support from their hydrocarbons industry.



Buchanan will be acting as ongoing media advisors to Desire. Basic plans include introductions to the financial media and oil and gas trade journals, extensive introductions to City analysts who cover the oil and gas space and further introduction to retail brokers.



Desire are presently working on the media materials and hopefully will advise on some changes to the format of the website so over the next few months they hope to build up the profile of Desire in a consistent, clear way.

Falklands : Hydrocarbons Weekend Record (06/07 May 2006)
Submitted by Falkland Islands News Network (Juanita Brock) 08.05.2006 (Current Article)
Rhetoric is heating up against Russia. Many analysts think it is because they do not support sanctions against Iran.


HYDROCARBONS WEEKEND RECORD (06/07 MAY 2006)

By J. Brock (FINN)


At the time of writing, markets for Light Sweet Crude and Brent Crude are just waking up and there is no firm price for over the weekend. Prices will be quoted in Mondays Daily Record. However, there was one indicator for Light Sweet Crude showing that it raised .16 cents in the Asian Markets early in the trading day.

The US, accustomed as it is to sabre rattling, has begun to speak out against Russia by saying that it is reverting back to its totalitarian past. Remarks made by Vice President Dick Chaney last week and those made by President Bush over the weekend have added to nervousness about oil supply to Europe. For its part, Russia has hinted that it might go ahead with a proposed pipeline to China and Japan. This increased rhetoric seems to be in response of Russias stance against sanctions against Iran.


The US and its allies through the UN Security Council have warned Iran to stop producing enriched Uranium. China and Russia are against sanctions for Iran and would rather have dialogue than war. President Bush in a recent statement did not rule war out of the equation and this increased acid stomach in oil investors.

In South America, Bolivia can rest easy for its philosophy of nationalising their natural gas reserves back and giving them to the people. In principle Argentina, Brazil and Venezuela agree this was a good move. The warning to Bolivia to make the new contracts with Foreign Oil Companies workable still holds as well as the temptation expressed by Brazils Petrobas SA to discontinue planned expansion of its gas pipeline from Bolivia.


President Alvo Morales of Bolivia will go to Vienna this week, where he will meet with oil industry officials in the European Union. If dialogue goes well President Morales may come away with advice that will do his country a lot of good.

LOCAL IMPLICATIONS:


The feel good factor still abounds with hopes that Desire Plc will get the rig it so desperately needs to explore prospects in the North Falkland Basin.

http://www.mercopress.com/Detalle.asp?NUM=7834

Falklands-Malvinas
Monday, 08 May


Kyoto protocol will extend to Falklands



THE Falkland Islands is going to join the UK in ratifying the United Nations Framework Convention on Climate Change and the Kyoto Protocol.



Before agreeing to do so, the government sought clarification of the implications of such a decision from the UKs Department for Environment, Food and Rural Affairs (DEFRA).
His Excellency the Governor reported, Having been reassured by DEFRA that ratification will not place any significant burdens on FIG, Executive Council agreed that the UK Government should now be informed that the Falkland Islands wishes to be included in ratification of these international treaties.

Also approved by ExCo was the Environmental Impact Assessment submitted by Desire Petroleum in connection with its plans to drill exploratory wells to the north of the Falkland Islands. The EI was approved subject to the following conditions:

that an operational addendum containing details of the drilling contractor and drilling unit when known should be submitted to the Mineral Resources Committee in consultation with the Environmental Planning Officer;
that the addendum to the EIA should be published in the Gazette;
that Desire Petroleum comment on and supply information as required by the Institute of Environmental Management and Assessments External Review recommendations. (These latter are being published.)

Just seen that FOGL, have knocked their 2D survey on the head 2,000 kms. short of the planned 15.000 kms.

I wonder if DES will try and use the Gulf Pacific for the site survey of ANN as indicated in the annual report.

Not the best time of year to do site survey seismic but maybe worth the risk bearing in mind MOB and De-mob costs.

Hi all

Thanks Markymar, Captguns for the updates.

The Buy If was not confirmed today, the good news is we get another go with the Buy If. DES is still sitting just above the rising trend line. There was also a large buy today which may be an early signal of support. Tomorrow will be the last day for which this Buy If will hold. Lets hope the bulls are out in force!




Good Luck All

Eddie

Thank you for the up date Eddie,

Capt bad news For FOGL as am sure will delay things and put back drilling and if i was a day trader would have a short on the share as drilling will be pushed back now till at least 2008 or even later.

Falklands : Hydrocarbons Daily Record (08/05/06)
Submitted by Falkland Islands News Network (Juanita Brock) 09.05.2006 (Current Article)
It has been predicted that a large oil company could have an interest in the Falklands and work with one of our hydrocarbons companies.


HYDROCARBONS DAILY RECORD (08/05/06)


By J. Brock (FINN)


At 1800 LMT on Monday, 08 May 2006, prices reflected a decline in the price per barrel with Light Sweet Crude .25 at 69.77 and Brent Crude at $70.21. This reflects a lull in rhetoric and optimism for dialogue efforts.

Contributing factors include rising supplies and a slightly less demand. It is not known if the trend will continue but it is hoped the situation will continue to contribute to lower hydrocarbons prices.



The President of Iran has written a letter to U. S. President Bush offering what he sees as the way forward and new solutions for the present stand-off between the two countries over Irans enrichment of nuclear fuel. The US has dismissed the letter as rambling and offering no substance. Iran stands by its claim that it is enriching fuel for energy generation only. Investors see the letter as an effort by Iran to seek a solution for the current impasse with the UN Security Council. This has lead to more confidence.


China and Russia are against sanctions for Iran and would rather have dialogue than war. It is possible their persuasion for dialogue may be a factor in the Iranian letter. Rhetoric by the United States against Russia has died down for now. Their accusations that Russia is using its hydrocarbons as a manipulative tool have not yet been proven to investors but they are waiting for more analysis.

In South America, Bolivias president is preparing for a meeting in Vienna with European officials and hydrocarbons industry representatives. It is hoped that the right advice will result in fair and workable contracts for Bolivian Gas.


LOCAL IMPLICATIONS:


When Desire gave a presentation in Stanley about the Environmental Assessment Dr. Phipps mentioned that it was unusual for a large oil company like Shell to get in on the initial exploration stage in the North Falkland Basin. He mentioned that large oil companies wait until all of the exploration work is done, then move in to buy part of take over the businesses doing the exploration. We in the Falklands are waiting to see if this happens with any of the entities searching for hydrocarbons in the North and South Falkland Basins.

Desire AGM is at 6pm on the 24th of May and will be held at the Reform Club, 104 Pall Mall, London


FOGL

The latest phase of seismic acquisition ended on May 5th. The rate of acquisition had recently slowed during a period of poor weather. Nearly 13,000 km of data has been acquired which has already substantially improved the definition of key prospects and has also helped to identify additional prospects in areas where the previous coverage was sparse. More seismic acquisition is planned to commence during the summer months in fourth quarter 2006. This takes the total amount of 2D seismic recorded by FOGL to 22,450 km which far exceeds the requirements of our licenses.

http://www.falklandoilandgas.com/fog/operations/pdfs/latest%20phase%20end.pdf

Who knows Markymar??

According to their web site 2008 seems to be the maybe plan now.

http://www.falklandoilandgas.com/fog/operations.php?sec=2

FOGL plans to conduct further seismic surveys targeting all the leads but with particular emphasis on the approximately 50 most promising. The aim will be to develop 20 high quality, technically sound and potentially economically viable drilling prospects. The Company then intends to develop a multi-well drilling programme which may be able to begin in 2008.

The news gets worse for FOGL capt,2008 a long way off and even that might be pushed back further as other delays might add to the problems.



Pip Pip

Shell on 'Big Cat' prowl

By Upstream staff


Shell is looking at several new exploration opportunities in the Asia-Pacific region to supplement its current portfolio, and is looking forward to a major operated drilling programme in Australia.

Wouter Hoogeveen, Shell vice president-exploration for Asia Pacific, said there were multiples of opportunities, and a number of prospective countries, but would not name specific countries.

"I will name those countries if we are awarded acreage," he said at the APPEA conference in Gold Coast, Australia.

"There are opportunities out there where we would be prepared to commit our intent and manpower," he said.

Meanwhile, the company is returning to operating wells in Australia for the first time since the 1990s.

Shell has contracted a semi-submersible for a 12-well gas hunt off Australia in a block that it believes could be a significant contributor to the supply of LNG to the Asia-Pacific market.

The supermajor hired Diamond Offshore semisub Ocean Epoch at a dayrate of around $225,000 from early November 2006 for 12 months.

Shell owns 100% of block WA-371-P in the northern Browse basin. The permit lies in relatively shallow water depths that range between 200 metres and 300 metres and is adjacent to the giant Ichthys/Brewster gas field operated by Japans Inpex.

Up 10% today on shell joint venture rumors