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.falklandnews.com/public/story.cfm?get=4704&source=3

Hydrocarbons Daily Record (11 October 2007)

http://www.fogl.com/documents/FalklandOilandGasLimited-BHPFarmOut-Oct07.pdf

Offshore rig count dips

By Upstream staff


Worldwide offshore rig demand slumped this week to 88% with 593 out of 674 rigs under contract, the ODS-Petrodata Groups weekly survey released today showed.

Worldwide utilization last week was 88.4%

In the US Gulf, utilisation dipped to 69%, with 89 rigs under contract out of 129 a three rig decline over last week.

In Europe, utilisation held at 100% for the 22nd consecutive week with all 103 rigs in the market in use.

In South American waters, 63 of 88 mobile offshore drilling units are under contract this week. Fleet utilization in the region is 71.6%, representing a one-rig decline in the regions contracted fleet over last week.

In the Asia/Australia region, 97 of 98 offshore rigs are under contract.

http://www.sartma.com/art_4631.html

Department of Mineral Resources Overview of Activities During September/October







Offshore Activities







Borders & Southern Petroleum has contracted PGS, a Norwegian geophysical survey company, to carry out a 3D seismic survey in their licensed acreage in the South Falkland Basin. The vessel Ocean Explorer, with six streamers, will acquire 1,500 sq km of data and a chase boat, Amber-G will support operations while in the Islands. The survey is planned to start at the end of October and is expected to last 3 to 4 months depending on weather conditions. Results from the survey which will take several months to process after the data has been acquired will assist BSP in identifying drillable prospects in their acreage.







Rockhopper Exploration has given BGS the processed 3D seismic data acquired earlier in the year by CGG in Rockhopper's northern acreage (PL033). BGS has started work on interpreting the data as has Rockhopper Exploration. As with BSP, Rockhopper Exploration expect that the interpretation work will give them a clearer understanding of the structures that may be oil & gas prone in the licensed area'







FOGL and BFIP Billiton announced their farm-out agreement on 3 October. FOGL is to be congratulated on bringing a major company into the Falkland Islands that is committed to drill wells. Tim Bushell, the CEO of FOGL, will be bringing BHP Billiton representatives to the Islands in January for a familiarisation visit. BHP is already working on drilling plans and rig availability.







Desire Petroleum has continued to work on their 3D data to ensure that the most productive structures in their acreage are drilled. RPS, the environmental consultancy company has been contracted to extend environmental assessment work to Desire's southern blocks so that wells can be drilled there in addition to acreage in quadrants 14 and 15.







A joint meeting of oil companies with production licenses in the Islands was held during the week of 1 October. The meetings were planned back in January and it was fortuitous that FOGL and BHP Billiton made their announcement about the farm-in at the beginning of the week. The news gave the meetings a greater sense of purpose and direction. Meetings were held with FIG, Councillors, MOD, the Chamber of Commerce and Falklands Conservation. A wide section of FIG and the community are well informed about future activities and the oil companies left the Islands with a greater understanding of the need to work together to maximize drilling activities.

Good stuff Marky,see that you still don't get the Penquin News online.

chav good stuff!!

http://www.mercopress.com/vernoticia.do?id=11623&formato=HTML


Falklands: Visiting operators optimistic about oil
THERE is good potential to find significant volumes of oil and gas in the Falkland Islands. Thats the optimistic message from oil industry representatives who were in the Islands last week for a series of meetings with the government, private sector and military.

Snap picture of operatos in Stanley
Zoom

The men from Borders and Southern Petroleum, Rockhopper Petroleum, Desire Petroleum, Argos Resources and Falkland Oil and Gas Ltd (FOGL) hosted a public meeting in the Court and Council Chamber.

Speaking on behalf of the group, Tim Bushell of FOGL, the company which announced an important farm-out agreement with resources giant BHP Billiton last week, said the Islands were not far from large well proven oil basins in South America and, therefore, their hopes of oil or gas finds are high. BHP has committed to drilling at least two wells for FOGL in the next three years.

He spoke of the drilling round held in the late 1990s by some of the big name companies in the industry and said the companies now involved in exploration in the Islands were a new breed who work together. Its becoming a common theme where small companies band together to form a consortium to charter a rig for a period. If you can share between operators it brings down the cost considerably.

Each exploratory well requires around 15m in investment, Mr Bushell said, excluding the cost of mobilising the rig.

Looking ahead, he outlined what the future may hold if oil or gas is discovered in commercial quantities. If oil is found, he said, floating production technology would most likely be used. It is standard technology that would work in a remote environment like this and, in terms of impact to the Falklands, you would see people coming and going but you wouldnt see any onshore plant.

The quickest this could be done after initially finding oil would be at least three years, he said: So if were drilling next year, realistically youre not going to see oil production until 2013/14. If gas is found, the timescale could be much longer and whether or not it is even exploited depends on how much is found. Mr Bushell explained: If we find a lot and we have to talk about trillions of cubic metres - then there is an option which involves bringing the gas onshore and having a plant to liquefy it then put it into ships to take up to the markets.

He showed the meeting a picture of the Snohvit development in Norway, an environment similar to the Falklands, and commented: That is what would be required if we have an LNG plant in the Falklands.

The time scale for this is much longer - it requires a lot more investment to build and youre probably talking ten years away, minimum, before youd see something like this in the Falklands, even if we found gas next year.

John Perry of environmental consultants RPC also briefly addressed the meeting on his companys role in carrying out Environmental Impact Assessments (EIA) and monitoring once drilling begins.

The EIA is a recognised formal process for assessing the likely impact of operations on the environment, and doing as much as possible to mitigate and minimise those impacts. Our job is to check that the drilling companies do what they have said they will do, he explained.

Looking back on the week of meetings with the oil operators, Director of Mineral Resources Phyl Rendell said the Islands were now at an encouraging and challenging time with oil exploration.

She commented: As Tim Bushell said, we are now assured that there will be wells drilled within the next three years due to the willingness of BHP Billiton to invest here.

The oil operators at their joint meetings last week did not flag up any major concerns about managing a second drilling campaign from the Falkland Islands as facilities proved to be adequate in 1998 and many of those facilities have improved since then.

Photo: (l-r) Bruce Farrer (Borders & Southern Petroleum), Dr. Howard Obee (Borders & Southern Petroleum), John Hogan(Argos Resources), Lewis Clifton (Desire Petroleum), Dr Ian Duncan (Desire Petroleum), Cllr Andrea Clausen, Dr Colin Phipps(Desire Petroleum), Sam Moody (Rockhopper Exploration), Tim Bushell (Falkland Oil & Gas Ltd), Dave Bodecott (Rockhopper Exploration), Stephen Luxton (Falkland Oil & Gas Ltd) & Stephen Phipps (Desire Petroleum) (PN)

Interesting that Argos Resources turned up as have'nt heard of them doing anything of late.

http://www.falklandnews.com/public/story.cfm?get=4708&source=3

HYDROCARBONS DAILY RECORD (17 OCTOBER 2007)



By J. Brock (FINN)



TODAYS TOP STORY:





OIL MAJORS PULLING OUT OF NORTH SEA AS WELL AS LATIN AMERICA



By J. Brock (FINN)



South America has now become a very difficult place for oil majors to work. ESSO and Royal Dutch Shell plc want to get out of Argentina and have put assets in Argentina up for sale. Both Shell, Exxon/Mobil and Esso consider Latin America among their smaller business areas and with additional political and economic pressure have decided to cut their losses and pull out. Royal Dutch Shell Plc and Exxon Mobil have also put some Dutch North Sea fields up for sale, in addition to its plans to sell UK North Sea assets. It is well known and speculated that the oil majors are focusing on oil provinces with more potential.



Royal Dutch Shell plc announced on Wednesday that its NAM joint venture with Exxon was selling a number of producing fields in the NOGAT area on the Dutch continental shelf. The press release went on to say that the fields being offered for sale produced around 5.4 million cubic metres of gas and 1,700 barrels of oil per day.



Politics play an important part in the decision to sell assets. Nationalisations like those taking place in Venezuela and Bolivia are not new. The North Sea was a vital production area for oil majors like Shell after they lost rich fields in the Middle East through nationalisations in the 1970s. It is believed that the North Sea is running out of huge commercial reserves and that the fields on offer would suit smaller oil companies.



It is hoped that more oil majors like BHP Billiton will focus on the North, East and South Falklands Basins as the Falklands offer a stable government and economic growth.

http://www.thisislondon.co.uk/news/article-23417114-details/Scramble+for+Antarctica:+Argentina+hits+back+after+Britain+makes+land+grab/article.do

Scramble for Antarctica: Argentina hits back after Britain makes land grab

Tue 23 Oct 2007

The land the world forgot becomes a coveted prize
TANYA THOMPSON (tthompson@scotsman.com)
NOT since the Golden Age of the Empire has Britain staked its claim to such a vast area of land on the world stage. And while the British Empire may be long gone, the Antarctic has emerged as the latest battleground for rival powers competing on several fronts to secure valuable oil-rich territory.

It was once seen as a harsh and barren landscape, an inhospitable wilderness that could yield nothing for mankind and for generations it remained overlooked. But today several countries are vying for a piece of what lies beneath the forgotten continent.

Britain is planning to lay claim to huge tracts of the Antarctic, with the Foreign Office drawing up a submission to the United Nations that 386,000 sq miles of sea bed in the south Atlantic should be declared British.

And the reason for the sudden interest? The area is thought to contain lucrative reserves of oil and natural gas, although under the 1959 Antarctic Treaty the search for these reserves could not begin until 2048.

Opponents of the British move - including Argentina and Greenpeace - say that any submission would breach the spirit of the treaty, which was designed to prevent new claims.

The British first made their mark on Antarctica in 1908 and the British Antarctic Territory now stretches out 666,000 sq miles from the South Pole, although parts of it are disputed by Argentina and Chile. Four other countries, Norway, Australia, France and New Zealand, have substantial interests on the continent.

The move is the latest example of a rush to claim land through the Arctic and Antarctic by states seeking to boost their energy resources. Russia has asserted its right to land beneath the Arctic Ocean and France claimed land around New Caledonia, in the Pacific.

But it seems certain that claims submitted by the British will be challenged by other states as the areas covered are the subject of several long-standing and bitter territorial disputes.

Details of the submission to the UN will be one of five similar claims that Britain has on its radar - in the Bay of Biscay, around Ascension, off the British Antarctic Territory, around the Falkland Islands and South Georgia and in the Hatton-Rockall basin. These sites, the Foreign Office insists, meet the "geological conditions required" and Britain is merely "safeguarding for the future".

The 'land grab' is part of a UN treaty that allows coastal countries to claim a continental shelf up to 380 miles off their shores, and the right to search for oil and natural gas there. Britain is one of nine countries that have filed such claims, and more are expected.

The Foreign Office explained: "It's incredibly unlikely that the Antarctic Treaty would ever be abolished but in order to safeguard our interests for the time being, we are submitting a claim."

Environmental campaigners are furious at the proposals and have condemned them at a time when there is growing pressure on governments to reduce carbon footprints.

"In April, the British Foreign Secretary, Margaret Beckett, took climate change to the UN Security Council for the first time," said John Sauven, executive director of Greenpeace UK.

"Six months on, the same Foreign Office is claiming ownership of one of the world's last remaining pristine ecosystems to drill for more fossil fuels.

"The approach reflects the kind of incoherent thinking on climate change that this government has continually demonstrated. If global emissions are to peak and be in decline in the next 100 months - as the scientists warn is necessary - this dash to Antarctica is totally reckless."

The days of British Imperialism may be behind us, but critics fear we are trying to carve out a new empire, with serious political repercussions.

Martin Pratt, director of research at the International Boundaries Research Unit at Durham University, says there is a fundamental disagreement about who owns the land.

"The basis for the claim is that Britain can claim sovereignty under the British Antarctic Territory... but the problem is that the United Kingdom, Chile and Argentina all dispute that territory.

"Legally, Britain is perfectly entitled to [submit this] in the same way that Britain believes it has sovereignty over the Falklands."

Mr Pratt, who has advised countless governments and oil companies on boundary disputes, is convinced that the demand for fossil fuels will force a nation to break the Treaty.

"Unless alternative energy is found, it's inevitable that they'll tap into this area for oil and gas. Look what happened in the Falklands in 1992. But this is an uninhabited continent and there would be heavy diplomacy and sanctions if a war was about to be fought over Antarctica."

Britain's aspiration to expand its sovereignty could trigger disputes with Argentina and Chile, which are likely to make overlapping claims.

The move is widely seen as a direct challenge to the 50-year-old international treaty - aimed at preserving the frozen continent's fragile environment from commercial and military exploitation.

Britain is not alone in its plans. A number of other countries submitting claims to the UN Commission on the Limits of the Continental Shelf are Russia, Brazil, Australia, Ireland, New Zealand, France, Spain and Norway.

This summer saw a heightening of tensions over Arctic sovereignty and potential oil riches highlighted by record melting of the polar ice cap and a Russian flag-planting mission at the North Pole seabed.

And news of the planned UK claim in Antarctica has raised the spectre of a battle over the southern polar region, with British experts predicting a possible end to the Antarctic Treaty and a looming threat to the southern polar environment.

Martyn Williams, from Friends of the Earth, is not convinced by the Foreign Office's attempt to downplay the prospect of a free-for-all at the South Pole.

"It really doesn't matter whose oil it is. Running around looking for more oil is not compatible with tackling climate change.

"Nor does it matter whether the oil is taken from a white, pristine environment or a dirty, ugly one. The damage to the environment will affect everyone."

Nations scramble to stake a claim to lands the size of Australia
SOME 45 countries with coastlines qualify for potential "extended underwater territory" rights under the UN Law of the Sea Convention.

It has provoked a scramble for underwater land almost as fierce as the one for Africa in the 19th century, when European countries divided up the continent.

As much as 2.7million sq miles - an area similar to the size of Australia - is believed to be at stake. It includes the Arctic, where Russia recently claimed land below the North Pole, new islands off India which emerged from the sea, and Pacific Ocean islands claimed by Australia.

But to claim the new underwater territory, countries must be able to show that it is an extension of their own topography.

All claims must be staked by 2009, which is why there is a rush to gather scientific evidence to support submissions.

Britain is preparing territorial claims on tens of thousands of square miles of the Atlantic Ocean floor around the Falklands and Rockall island in the hope of annexing potentially lucrative oil and gas fields.

The Falklands claim has the most potential for political fall-out, given that Britain and Argentina fought over the islands 25 years ago, and the value of the oil under the sea in the region is understood to be immense. Seismic tests suggest there could be about 60 billion barrels of oil under the ocean floor.

Talks have already begun between Ireland, Iceland and Denmark for the division of rights far out into the north Atlantic. It includes the island of Rockall and the sub-sea Hatton ridge. The claims are not close to final resolution, although Ireland and the UK have agreed a common boundary.

Other countries which have submitted claims to the ocean floors around remote overseas dependencies have run into fierce opposition from neighbouring nations.

France, which registered its claim to thousands of square miles around New Caledonia, in the Pacific, has received protests from Vanuatu warning the claim has "serious implications on Vanuatu's legal and traditional sovereignty". Russia was heavily criticised for making claims beneath the Arctic Ocean.

http://www.desireplc.co.uk/pdfs/Shareholders_FI_1007.ppt

The Falklands Presentation to its shareholders

serious amount of buying this morning....spring around the corner for the island of penguins and oil

watcher

Fans structures found in Falklands



http://oilport.net/news/article.asp?Id=9013

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

BUY
CONFIRMED

a chartist would have a party looking at the chart!

LONDON (Thomson Financial) - Shares in Desire Petroleum pushed higher in
late morning deals, as Seymour Pierce upgraded its rating on the company to
'buy', according to traders.
At 11.44 am, Desire Petroleum shares climbed 0-3/4 pence to 20-3/4.
In a note to clients, Seymour Pierce said that following market weakness and
the recent fall in Desire Petroleum's share price, it now believes the company
is undervalued.

Desire Petroleum plc will commence acquiring 2D seismic data in the NFB during the week beginning 26th Nov 07.

Data acquisition is expected to take 10 days weather permitting.

Six specific locations to have seismic data acquired.

1. Ann Prospect 4Km x 4 Km area centered on Lat 49 degree 23' 52.26"S and Long 059 degree 22' 31.51"W

2. Tie Line Site Survey - single line incorporating following way points

Well14/09-1 49 19 09.548 S 059 23 05.527 W
Ann A 49 23 52.260 S 059 22 31.520 W
Ann B 49 27 46.316 S 059 22 30.935 W
Orca South 49 32 38.620 S 059 22 05.523 W

3. Alpha Prospect -

3Km x 3Km centered on Lat 50 15 29.10 S Long 059 09 53.09 W

4. Dawn Prospect -

3Km x 3Km centered on Lat 50 02 50.16 S Long 059 08 47.67 W

5. Barbara Prospect

3Km x 3Km centered on Lat 50 40 51.36 S Long 059 06 49.29 W

6. Ruth Prospect

3Km x 3Km centered on Lat 50 28 10.87 S Long 058 57 47.74 W

Earnest survey contract

Wednesday, November 28, 2007


http://oilport.net/news/article.asp?Id=9234

Billiton builds Falklands farm-in

Wednesday, November 28, 2007

http://oilport.net/news/article.asp?Id=9236

Barclays buys 5% of company

Robstuff


I do like conspiracies theories


Barclays have also taken a stake in BHP Billiton. Who are partners of FOGL at a 51% stake now on the same date and same time Barclays also released an RNS saying they had taken a 5% stake in Desire Petroleumnow thats what I call Spooky