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

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

Offshore rig count improves in US Gulf

By Tom Liskey


Rig utilisation in the US Gulf improved to 72.9% this week as two more units found work in the region. According to ODS-Petrodata, 94 of the 129 mobile offshore rigs in the area are under contract.



The total worldwide offshore drilling fleet grew by one this week with the addition of the Blake 208, a mobile offshore production unit that is being converted into a jack-up drilling rig.

The number of rigs under contract worldwide also grew by one.

With 599 of the worlds 676 offshore rigs under contract, worldwide offshore drilling fleet utilisation is 88.6%.

The major offshore rig markets remain unchanged. For the 28th consecutive week, the European offshore rig fleet remains 100% utilised with all 102 units in the area under contract.

The South America marine rig count is unchanged with 63 of the 88 units working.

In West Africa, fleet utilisation remains 98.1%, with 53 of the 54 offshore rigs in the region under contract.

In the Asia/Australia region, 98 out of 100 available rigs under contract.

RNS Number:2901J
Desire Petroleum PLC
06 December 2007


For immediate release 6 December 2007

Desire Petroleum plc

("Desire" or "the Company"

Acquisition of Site Survey Data

Desire Petroleum plc (AIM:DES) is pleased to announce that Wavefield InSeis ASA
has completed the full site survey programme on Tranches C, I and L as planned.
The entire survey was successfully acquired in 6 days with no weather downtime.

The outstanding lines in Tranche C were acquired in addition to new site surveys
over 4 prospects in Tranches I and L. With the Environmental Impact Assessment
over Tranches I and L due to be completed in 2008, Desire will be in a position
to drill in Tranches C, D, I and L as soon as a rig becomes available.

Following BHP's commitment to drill at least 2 wells in the area to the south of
the Falklands, it is expected that Desire, as well as other parties, will take
part in an extended drilling campaign and that the mobilisation and
demobilisation costs of bringing a rig to the area will be shared. As a
consequence, Desire expects, at current prices, to be able to drill at least
two, or possibly three wells from its own resources.

Desire is continuing discussions with a number of companies interested in
farming-in to the Desire licences due to the very considerable reserve potential
identified in the North Falklands Basin. However, the Board remains mindful of
its commitment not to enter into any agreement which may unduly dilute
shareholders' exposure to this exploration potential.

For further information please contact:

Desire Petroleum plc 020 7436 0423
Colin Phipps, Chairman
Dr Ian Duncan, Chief Executive Officer

Buchanan Communications 020 7466 5000
Ben Willey
Ben Romney

Desire nears drill ready status

http://oilport.net/news/article.asp?Id=9300

Good news !

Desire get a mention and i can see why Phipps want to keep control and be in charge.

"Ian Duncan, the Chief Executive Officer of Desire, later told oilbarrel.com that he was wary of criticising anyone but said: You have to remember this was a time when the oil price had fallen to US$10 a barrel. The majors had to compete internally within the company for scarce rigs. Someone in London or Houston only had to say why are we wasting our time in a marginal area in Falkland when we could be on to a surer bet in the Gulf of Mexico.

http://www.oilbarrel.com/home.html

07.12.2007
Falkland Oil & Gas Gets The Farm Out Increment It Wanted To Bring It Within Striking Distance Of Drilling
It seems to have taken an unconscionably long time but AIM listed junior Falkland Oil & Gas, together with its partners, looks as if they are now within striking distance of drilling some exploration wells around the Falkland Islands. These still British possessions have long been a dream area for some oilmen and investors. The thought is that there are signs this is a last great frontier and there could be huge amounts of hydrocarbons around the remote islands in the southern Atlantic.

There has been some drilling around the Falklands. In 1998 London junior Desire Petroleum participated in a six well drilling campaign alongside Amerada Hess and Shell. Desire had interests in two wells around North Falkland. Five of the six wells had hydrocarbon shows. Well 14.10-1, drilled by Shell, had live oil at surface of 27 degree API. Another well 14/5, also drilled by Shell, had 32 per cent gas at surface. The drilling was not a great success but it was not a complete failure either.

The wells were drilled back to back and there was no time to evaluate each well. For reasons, which, in retrospect, seem a little curious, the initial drilling was not followed up.

Ian Duncan, the Chief Executive Officer of Desire, later told oilbarrel.com that he was wary of criticising anyone but said: You have to remember this was a time when the oil price had fallen to US$10 a barrel. The majors had to compete internally within the company for scarce rigs. Someone in London or Houston only had to say why are we wasting our time in a marginal area in Falkland when we could be on to a surer bet in the Gulf of Mexico.

For whatever reasons the majors pulled out. But Desire, whose shares had enjoyed a roller coaster ride, rising steeply and then falling back sharply, has kept the faith and still believes in Falkland.

Meanwhile Falkland Oil & Gas floated on AIM and together with Aussie partners Hardman Resources and Global Petroleum assembled a huge portfolio, amounting to 83,700 sq km, more than the southern basin in the UK North Sea. It was partnered in 33,700 sq km of the acreage by Perth-based Hardman.

There was a 2D seismic shoot in 2004 over 9,450 sq km. There was great excitement over the findings. There was more seismic and more excitement. A large number of leads were established over various play types. There was talk of maybe 200 million barrels of oil even a possibility of 1 billion barrels of oil in these waters. But of course you have to drill wells before you know.

Could FOGL get a rig? Could it ever? 2006 came and went and there was no rig. The Falkland Islands are a long way from anywhere. Rig prices kept going up and getting more scarce. 2007 looked as if it would also come and go and there would still be no rig. There were endless rumours that a major resource company was about to step into the breach. Mobilising a rig to the Falkland Islands would be a big financial undertaking; numbers of US$40 million at least have been bandied about. There was little prospect of AIM-quoted FOGL, which was dumped by its partner Tullow Oil that inherited a share of the assets following the takeover of Hardman Resources, raising the money on its own. It was vital to find a farm-in partner with deep pockets if it was going to meet its drilling commitments.

Finally, in October, Australian mining, metals and petroleum company BHP Billiton was named as FOGLs new partner.

Under the farm-in agreement BHPB was to earn a 40 per cent interest and operatorship of the licences by drilling two wells over the next three years. It was to pay some of FOGLs drilling costs - BHPB was to pay 53.3 per cent of the well costs to earn its 40 per cent share - and pay FOGL US$10 million to cover some of its historical costs on the licences. These did not seem the most generous farm-in terms but they would have started to look sweeter should BHPB have exercised an option to increase its stake to 65 per cent, at which point it would have to pay another US$6.5 million in historical cost and cover 87 per cent of the drilling costs. This would have left FOGL with just 13 per cent of the drilling costs (although on a US$100 million drilling programme that is still a hefty bill), some of which would have been offset by the US$16.5 million cash payment.

BHPB had until November 27 to improve its offer. Well, it has not come up with the full whack but its new offer will almost certainly do. BHPB has elected to increase its interest in the South exploration licences operated by FOGL from 40 per cent to 51 per cent and to assume operatorship of the licences. Under this extended agreement, BHPB will pay FOGL an additional US$2.75 million in respect of past costs and will contribute 1.33 times its working interest share of the exploration costs up to and including two exploration wells. Consequently FOGL will have received cash of US$12.75 million and will pay approximately 32 per cent of forward costs while retaining a 49 per cent working interest in the licences.

The point is with the new cash and a proportion of its share of ongoing costs covered, FOGL will not need to enter into further farm-out deals to continue with the short-term work programme. On the other hand, it still has sufficient equity to secure further farm outs in due course should that be deemed necessary. FOGLs shares have risen sharply since BHPBs involvement became known.

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

BUY
CONFIRMED

http://http://www.sartma.com/artc_4851_FI_3.html

Falklands : Department of Mineral Resources Activity Report
Submitted by Falkland Islands News Network (Juanita Brock) 20.12.2007 (Current Article)

Phyl Rendell updates us on the latest Department activity.

DEPARTMENT OF MINERAL RESOURCES ACTIVITY REPORT

By Phyl Rendell

Falkland Oil & Gas Ltd / BHP Billiton

A press release on 28 November confirmed that BHP Billiton will take a 51% share in Falkland Oil & Gas Ltd’s licences. The Department has been processing the required paperwork to facilitate the farm-in by BHP in preparation for them to take over operatorship of the licences in January 2008.

BHP Billiton representatives together with Falkland Oil & Gas Ltd Chief Executive Tim Bushell, will visit the Islands during the week of 21 January to establish contact with the Falkland Islands Government and businesses that will assist with exploration drilling. It is anticipated that the team will be available to host a public meeting.

Desire Petroleum

A site survey programme for Desire Petroleum that was terminated by Wavefield Inseis in the winter due technical failure has now been completed. These site surveys are necessary if a company wishes to drill prospects and the data assists with health and safety assessment of the drilling conditions. Desire Petroleum now has environmental and health and safety data for their northern licences (Tranches C & D) as well as site survey data over their southern licences, in the North Falkland Basin (Tranches I & L). An environmental impact assessment (EIA) is being compiled for the southern prospects in readiness for seeking approval to drill.

Rockhopper Exploration

Rockhopper Exploration has been able to utilise the Wavefield vessel, Bergen Surveyor, to carry out a site survey over a prospect named Ernest. Rockhopper Exploration is working in conjunction with Desire Petroleum to produce an EIA for their licensed acreage adjacent to Desire Petroleum’s blocks. Meanwhile, the company is on track with interpretation of the 3D seismic data acquired in their northern licence, PL033 where Shell drilled two wells in 1998.

Borders & Southern Petroleum

A 3D seismic survey being acquired by PGS is progressing quite well. The Ocean Explorer has made two port calls for crew changes to date and the support vessel, Amber G, has been playing a very useful role in ferrying equipment and personnel to the Ocean Explorer at the survey site in the South Falkland Basin.

Of general interest the Marine Mammal Observer (MMO) onboard has reported a considerable number of whale sightings including a Blue Whale on one occasion.

Falkland Gold & Minerals Limited

The Chairman of Falkland Gold & Minerals Ltd, Richard Linnell, and Derek Reeves the Project Manager were in the Islands for meetings with the Falkland Islands Government at the end of October. It is expected that the company will end activities by Christmas and start decommissioning equipment for shipment elsewhere. Although commercial quantities of gold have not been found during the onshore drilling programme, a huge amount of core is retained at Goose Green and it has an interesting story to tell about the geology of the Islands. Dr. Phil Stone from the British Geological Survey will visit the Department in late January to discuss plans for the future of the rock core with Derek Reeves. It is hoped that some research work can be carried out on this valuable resource to add to the geological understanding of the Islands.

Department Matters

The popular “Reading the Rocks” geological brochure is in a second print edition thanks to Phil Stone and will be available for retail as stocks of the first edition are exhausted.

Pippie Christie joined the Mineral Resources Department in mid November as Oil Administrative Officer and is already making a valuable contribution to the department in addition to Katrina Stephenson who ably handles front of house matters.

http://www.mercopress.com/vernoticia.do?id=12239&formato=HTML

Oil companies prepare for exploratory drilling in Falklands

http://www.rockhopperexploration.co.uk/cube.html

The cube contains oil recovered from the Shell well 14/10-1 during the 1998 campaign.

That hole was capped as the oil was free flowing to the surface!!!!

http://www.mg.co.za/articlePage.aspx?articleid=329121&area=/insight/insight__international/

The United Kingdom (UK) has signalled, for example, that it intends to register claims on the Atlantic Ocean bed around Ascension Island, in the Hatton/Rockall basin, below waters surrounding the Falklands and South Georgia, and on the continental shelf sloping away from the British Antarctic Territory.

The UK was not the first nation to show an interest in Antarctic waters.

One day all the action will be in the South Atlantic, but unless they hurry up and get some rigs out there, fuel cells will come into play as well.

http://www.sartma.com/art_4910.html

Desire Board Appoints Robert Lyons Non-executive Director
http://news.independent.co.uk/business/news/article621843.ece

Ho Ho Ho,

What's that Pugwash up to in the UK stock challenge Markymar.

Ho Ho HO Pugwash am snowed in again and thank u for telling me,speak soon,Tally Ho.


http://www.malverngazette.co.uk/news/malvnewsroundup/display.var.2012157.0.mathon_firm_targets_rich_oil_reserves.php

Mathon firm targets rich oil reserves
By Jack Davidson
Comment

Dr Colin Phipps with a piece of oil reservoir rock.
POTENTIALLY vast oil reserves under the Falkland Islands are being targeted by a Mathon company hoping to make hundred of millions of pounds.

Desire Petroleum, headed by geologist Dr Colin Phipps, will compete with five other companies to drill deep into the sea bed of the British overseas territory.

Dr Phipps said: "There are potentially several billion barrels down there. It could be getting on for the UK part of the North Sea if it was accessible. Until you drill you do not know."

The limited company is currently worth between 60-70 million dependent on share price, but this value would rocket if they were successful.

"Dependent on how much oil we discover, the company could be worth anywhere between hundreds of millions and billions of pounds."

The project represents the biggest venture yet of Desire Petroleum, who are named after the ship to first discover the Islands in 1592.

The company would employ contractors to complete the work, with the cost of drilling each well estimated at between 5-10 million.

The current interest in the South Atlantic islands follows a drilling programme carried out in 1998, when six test wells were drilled in the North Falklands Basin.

This programme, led by Shell who are no longer involved in the area, found traces of oil but no proof that they were commercially viable.

"A lot of work has been done since then which indicated there are strong possibilities for oil," explained Dr Phipps who has lived in the Malvern area since 1955.

This recent geological work and the current record high price of oil has led to the current interest in the area.

Competing for the lucrative resource will also be Rockhopper Explorations, Falklands Oil and Gas Limited, Borders and Southern Petroleum, Argos Explorations and, mining giant, BHP Billiton.

The six companies would drill separately from the same oil rig with desire operating four wells and Dr Phipps explained they all had an equal chance of success.

"All oil exploration contains a certain gamble," he said.

The Falkland Islands, only home to around 3000 people, would become hugely rich if the reserves were found to be commercially viable.

Under licensing laws, issued by the Falkland Islands Government, they would be due nine per cent royalties on any oil drilled and a corporate tax rate of 25 per cent.

Dr Phipps hopes to begin drilling sometime later this year

C. Kirchner invited to London; Falklands unofficial talks?
http://www.mercopress.com/vernoticia.do?id=12585&formato=HTML

http://www.mercopress.com/vernoticia.do?id=12634&formato=HTML

Cristina K travels to London and will press Malvinas issue

Another step forward on the political side.

Penquin News 15/02/08


OIL and gas exploration company
Desire Petroleum plc is embarking
on the final stages of work required
before exploratory drilling begins.
Falklands spokesperson for Desire,
Lewis Clifton, said the company
had joined with Rockhopper
Exploration to explore opportunities
to undertake a seabed sampling
survey - the last environmental
piece of work required before drilling
can commence.
He commented: Once the appropriate
assets - ie a ship - are secured,
it will be a short time before
the work is carried out. It should
only take about ten days of work at
sea then a little more time for the
results to be analysed.