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

http://www.freemarketnews.com/Analysis/106/5329/2006-06-16.asp?wid=106&nid=5329

ADDENDUM: THE OIL THAT GREASES THE SQUEAKY WHEEL OF PEAK OIL

Friday, June 16, 2006

Looks like Norske Hydro is on the presentation agenda.

http://www.offshore.no/nyheter/sak.asp?Id=14004

http://www.dn.no/forsiden/energi/article806241.ece


http://n24.no/boers-og-finans/article1358684.ece

Captguns, thank you for those links. The investor Robert Keith is a director of FAST which seems to be a successful Norwegian software company. One of his fellow directors is Thomas J.Fussell who is also a director of..... Gaelic Resources. Looks like the Norwegian link has been there a long time.

Repsol picking up pace in Argentina

By Upstream staff


Spanish explorer Repsol YPF is accelerating its investment plans in Argentina in order to make better use of its existing reserves there.

The company said that it would invest $6 billion in Argentina over a three-year period starting in 2007. $4.6 billion will go towards exploration and production.


It added that it would strengthen its strategic alliances with companies that specialise in exploring mature regions as it tries to find more crude in its existing wells, reported Reuters.


New reserves will be generated through greater exploration activity and additional development derived from the application of operational improvements and new technologies in mature areas, the company said.


The company's prior investment plan called for $7 billion in investments from 2005 to 2009, of which some $2.7 billion is expected to be spent by the end of 2006.

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

BUY Confirmed

spot on marky. Hope you aren't paying for that advice

Snip from the RKH RNS.

Looks positve for tranches I + L, and if it all comes together a drillable target. Early days but rig sharing comes to mind.
(The BIG if just got a bit smaller)


Rockhopper contracted Offshore Hydrocarbon Mapping plc in January 2006 to
conduct two CSEM surveys over its acreage in the North Falkland Basin during
January and February 2006. The surveys covered prospect J1 and lead K. Those
areas were also the subject of a new 2D seismic survey, also acquired during
January and February 2006.


Both targets (J1 and K) are located in relatively shallow water of less than
200m in licences PL023 and PL024, an undrilled part of the North Falkland Basin
near the Islands representing an independent play type from those plays and
targets in the more northern part of the basin. The targets are both relatively
shallow and this, combined with the shallow water depth, would make any wells
drilled relatively quick and inexpensive should a rig be drilling in the area.

CSEM Preliminary Results

The preliminary results of both surveys have indicated the presence of discreet
resistors in the area of the targets which, when combined with the existing
seismic data, could prove to be a positive indicator of hydrocarbons.

The Directors remain cautious until the next step is complete, which will be to
fully integrate the CSEM results with the new seismic data, which is in the
final stages of data processing. Once this is complete, the Company should have
a more definitive view of the extent of any potential reservoirs. That process
could take several months.

Should the integration confirm the robust physical nature of J1 and support the
interpretation of the resistor as a possible hydrocarbon accumulation, that
target could be moved to the status of a fully drillable prospect without the
need to acquire any additional seismic, subject to all necessary regulatory
consents.

Morning Capt,

At the Agm am i right in thinking that Desire said the had enough casing to drill 4 holes?

Strange those trades in RKH yesterday.......leaks before news maybe.

Good news either way for both parties!!!!

markymar

Yes to all 3 points. It was discussed yesterday on iii.

I'm only dissappointed that the RKH good news has had no effect on DES. We are currently down on the day!

Whats your thoughts on the sp. I think we are about to test the 20's again.

marrow

Hi Marrow,

Good news for all and was not reflected in Desire SP, I think the SP will rise in the coming weeks as talks over in Norway with rig contractors and oil companies starts to hits home. The feelers have been put out last month the big guns are going over there to do a deal !!!!

Am very optimistic a deal can be done and its the best chance Desire have had for about a year now of getting a rig and this will be reflected in the share price as news is leaked out on progress good or bad.

Marky

Just looked at British Bulls they have DES down as sell tonight, every time it does it drops a penny and the bounces back so it will probably drop tomorrow but as said too much going on in the back ground for Desire at this present time which is positive and with RKH .

A deal done over in Norway you will see 80p to 1 + depending on deal and time frame of rig, no deal in the coming Months or so YES 20s

Am bullish a deal can be done this time.

http://www.publications.parliament.uk/pa/cm200506/cmhansrd/cm060628/text/60628w1283.htm#column_435W

Falkland Islands
Mr. Hoyle: To ask the Secretary of State for Foreign and Commonwealth Affairs what discussions the Government have held with (a) the Falkland Islands Government and (b) the Argentine Government on exploration for oil and gas in Falkland Islands waters. [79698]

Mr. Hoon: The Government hold regular discussions with the Falkland Islands Government on the exploration for oil and gas in Falkland Islands waters. Most recently these included a meeting between both the Foreign and Commonwealth Offices Director General for Defence and Intelligence and the Overseas Territories Department, with representatives of the Falkland Islands Government, on 15 June.

There have been no discussions with the Argentine Government on the exploration for oil and gas in Falkland Islands waters since the South West Atlantic Hydro Carbons Commission ceased to meet inJuly 2000.

Mr. Hoyle: To ask the Secretary of State for Foreign and Commonwealth Affairs what Government policy is on supporting the Falkland Islands in their exploration for gas and oil in their territorial waters. [79699]

Mr. Hoon: The Government are committed to the offshore prospecting policy pursued by the Falkland
28 Jun 2006 : Column 436W
Islands Government, which is entirely consistentwith the United Kingdom's sovereign rights over the Falkland Islands.

Marky

Hope you're right mate. Its best we don't bank on it though, we've had so many false dawns.

Marrow

Hi all

Thanks to all for the updates.

Looking at the chart it looks like the markets intention has been to re test the 200 day moving average. There have been a few buy signals. Point & figure, kagi, Renco, and candles. The move back up through the 200 day moving average is also regarded as being good, all these still need confirmation. All being well this could be tomorrow.





Good Luck All

Eddie

Marrow plenty of false dawns, this is the best chance we have had for a good while, G1 is still buying thats good enough for me if you know who G1 is buying for!!!

Interim results of Scarborough Minerals used to be called Greenwich Resources

http://www.iii.co.uk/investment/detail?code=cotn:SCRB.L&it=le&display=news

Desire Petroleum plc

Scarborough has maintained its shareholding in Desire Petroleum plc, which holds
Offshore oil and gas exploration licences in the North Falkland Basin.

Desire is presently seeking to acquire a suitable drilling rig in order to
Commence a further drilling programme under these licences, either on its own or
with a joint venture partner. Although the economic conditions currently
affecting the rig market make this a difficult and costly process, the situation is expected to improve.


During the six months since 1 October 2005 the Company did not make any further
Sales from its holding in Desire.

Marky

I'd be interested to hear who G1 is buying for.

Marrow

http://www.guardian.co.uk/argentina/story/0,,1810067,00.html

http://www.jpg.co.uk/contents_06.htm

Extract only pasted, read the full paper.

Four basins surround the Falkland Islands, but only the North Falkland Basin has been drilled; six wells were drilled there in 1998. Although all six wells encountered good quality sandstones, none of them targeted the basin margins, on what are now thought to be the optimum migration pathways associated with the basins thick lacustrine source rocks. Subsequently, a 3D seismic survey acquired in 2004 was designed to identify potential basin margin-derived sandstones entering the basin along transfer zones. From this survey, a number of basin margin-attached fans have been identified; these prograded into lacustrine waters of varying depths. These Early Cretaceous alluvial/fan delta/deep-lacustrine fan systems are interpreted to provide excellent potential reservoir facies as they are intimately associated with thick, mature source rocks. They will provide the focus for the next planned phase of exploration in the North Falkland Basin.

A phase of drilling is also planned for the basins to the south of the Islands, where large deltaic and fan systems, slightly younger than those imaged in the North Falkland Basin, are seen on seismic to prograde from the same Palaeozoic hinterland that produced the older, North Falkland Basin fans.

This paper attempts to show how sedimentary models derived from targeted seismic programmes following initial exploration can be utilised to plan and improve new drilling campaigns in a frontier basin. It presents an analysis of sediment dispersal patterns in basins of marine and lacustrine origin linked to a single hinterland area, and highlights the nature of the relationship between relay ramp/transfer zone development and sediment dispersal patterns in the sub-surface.


http://www.publications.parliament.uk/cgi-bin/newhtml_hl?DB=semsimple&STEMMER=en&WORDS=falkland&ALL=&ANY=&PHRASE=&CATEGORIES=&SIMPLE=falklands&SPEAKER=&COLOUR=Red&STYLE=s&ANCHOR=muscat_highlighter_first_match&URL=/pa/cm200506/cmhansrd/cm060629/text/60629w1306.htm#muscat_highlighter_first_match
Mr. Hoyle: To ask the Secretary of State for Foreign and Commonwealth Affairs what estimate she has made of the reserves of oil and gas in Falkland Islands waters. [79611]

Mr. Hoon: Only further exploratory drilling will allow for a dependable estimate on the size of the reserves of oil and gas in Falkland Islands waters. Initial exploratory drilling was unable to ascertain the level of oil and gas reserves and is un-likely to restart before 2007.

Mr. Hoyle: To ask the Secretary of State for Foreign and Commonwealth Affairs what assessment the Government have made of the potential contribution of the search for oil and gas in Falkland Islands waters to the provision of energy in the UK; and whether the Government are taking action to support such exploration. [79702]

Mr. Hoon: Only further exploratory drilling will allow for a dependable estimate on the size of the reserves of oil and gas in Falkland Islands waters. It is not therefore possible currently to assess the potential contribution to the provision of energy in the UK. Initial exploratory drilling was unable to ascertain the level of oil and gas reserves and is unlikely to restart before 2007.

The Government are committed to the offshore prospecting policy pursued by the Falkland Islands Government.