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

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.

I was expecting some meat on the bones thrown from RKH

NORTH FALKLAND BASIN ITS TIME TO LOOK FOR THAT DRILL RIG OR SHIP By J. Brock (FINN) It looks as if Dr Colin Phipps prediction that a drill ship or rig could be moved to the North Falkland Basin by the end of this year could be accurate. For the past few years Dr Phipps has said that the work already done on the environmental assessment has put his company well ahead of the others. A Company statement through Lewis Clifton to Penguin News on Friday supports Dr. Phipps assessment.

It will take keen financial prudence to get the right rig at an appropriate day rate, but that wont be cheap. Drill ships can be from $500,000.00 to $750,000 per day depending on how tight the market is when one comes available.

Semi submersible rigs are slightly cheaper, from $450,000.00 to $$600,000.00 depending on how tight the market is when one is available.

Due to high crude prices the rig market is very tight and rigs are being kept by companies for exploitative drilling. Lower crude prices would help ease the situation and hopefully new partnerships can help with rig and/or drill ship acquisition.

We await news from people who are involved in the search. Hopefully it will be good news

http://oilport.net/news/article.asp?Id=9797

Rockhopper feathers Falklands nest


South Atlantic explorer Rockhopper Exploration has signalled that its prospect inventory could now contain as much as 4.4 Bn bbl of oil based on the results of new seismic data from two of its licence areas to the north of the Falkland Islands.

Rockhopper said today that the results of the 850 km of 3D seismic over its PL032 and PL033 licences in the North Falklands Basin which included acreage where two wells were drilled in 1998 - suggest prospects which could contain up to 1.9 Bn bbl of unrisked recoverable reserves of oil and 1.2. Bn bbl on a P50 unrisked recoverable reserves basis.

This is in addition to the 2.5 Bn bbl of oil Rockhopper has previously suggested for its two other licences, PL023 and PL25, also in the North Falklands Basin, taking the overall total to a possible 4.4 Bn.

Rockhopper declared: The new mapping has identified five hydrocarbon plays in the acreage and confirmed the presence of multiple drilling targets. In addition, the 3D seismic has revealed that one of the exploration wells drilled by Shell in 1998 which
(amongst other oil shows) encountered a thin sand with good hydrocarbon shows,is actually located at the very edge of a fan prospect which appears to thicken towards its centre.

Looks like BHP/FOGL have missed 2 boats as well as the plane Markymar.

LOCAL DEVELOPMENTS:

DIRECTOR OF MINERAL RESOURCES REPORT FOR 21 FEBRUARY 2008

By Phyl Rendell

Borders & Southern Petroleum 3D Seismic Survey

Borders & Southern Petroleums 3D seismic survey was completed on 13 February 2008. PGSs survey vessel Ocean Explorer came to Stanley for a final crew change on the weekend of 16 February and will shortly leave the area along with their chase boat Amber G. The survey took a total of 108 days to complete and the data obtained covers an area of 1492km. A Marine Mammal Observer on board the vessel reported 102 separate marine mammal sightings including one of 2 Blue Whales on the 19 January. Seismic Data interpretation ongoing.

Desire Petroleum and Rockhopper Exploration have been working on seismic data interpretation. Rockhopper Exploration now has a large 3D data set covering their northern blocks and report that following processing, interpretation work is revealing potentially encouraging hydrocarbon indicators.

Desire Petroleum has well site survey data having utilised the Wavefield vessel Bergen Surveyor, to acquire the data in December. Desire Petroleum is now a step closer to being ready for drilling when rig availability improves. BHP Billiton took over operatorship of Falkland Oil & Gas Ltds licences in the South Falkland Basin on 1 January. BHP now report on exploration progress to the Falkland Islands Government. A visit to the Islands by a team of BHP representatives is proving difficult to organise due to flight availability and all the key players being free to travel on a given date. Unlike our other licensees, BHP has a multiple exploration programme world wide and their staff need to be available to work on a number of projects. BHP will however be represented at a Joint Operators Meeting to be held on 7 March at BGS in Edinburgh and FIG will have a separate meeting with them on 6 March.

Environment Impact Assessment Activities

Rockhopper Exploration, Desire Petroleum and BHP Billiton are actively preparing EIAs for their licensed areas in preparation for drilling.

Oil Meeting and Marketing Events

A Joint Operators Meeting (JOM) has been arranged at the British Geological Survey offices in Edinburgh on 7 March. The Director will attend and will also meet with individual companies to get an update on their programmes of work.

The American Association of Petroleum Geologists (AAPG) convention is to be held in San Antonio, Texas from 20 to 23 April. FIG will have a stand in the exhibition hall in order to promote the Falklands as an oil exploration area. It will also be an opportunity to meet other oil companies and follow up on any business with BHP Billiton who operate the Falkland licences from their Houston office. Falkland Gold & Minerals Ltd cease exploration activity FGML are in the process of closing down their operations at Goose Green. The company has met all its obligations and has supplied FIG with an excellent geological data set. FIG will continue to have a dialogue with FGML until the expiry of their licence in 2009.

Its such crazy nonsense, have been holding these for about 10yrs and when the price was 10$ a barrel it wasn't commercial to drill and they'd wait until the price improved to about 20$. Now we're at 100$ and they have this terrible excuse of not affording a rig! At this price they could have one specially built surely. Is anything ever going to happen out there or is it a case of directors stalling as long as they can milk an idea. Wait too long and there will be another price crash/oil won't be needed

And Markymar, are you employed by Desire? because for almost as long as i've been a holder - prob 10yrs you have so diligently and without losing faith posted almost daily here. Such a waste of your life if you're not mate. I really hope it comes off for your sake as well as mine and hope you are a very big shareholder :)