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

Desire Petroleum PLC
25 February 2008

Desire Petroleum plc
('Desire' or 'the Company')

Farm-in agreement

The Board of Desire Petroleum plc is pleased to announce that it has accepted
the terms of an offer from a significant party to farm-in to three of the
eighteen exploration prospects identified by Desire in the North Falkland Basin
and currently carried in the Company's prospect inventory.

The farm-in remains subject to certain awards and approvals by the Falkland
Islands Government which are being applied for and a further announcement,
including the final terms of the farm-in, will be made once the necessary awards
and approvals are in place.

If successfully approved, the farm-in will involve the drilling of two
exploration wells, including the mobilization and demobilization costs
associated with the two wells, at no cost to Desire.

At current rig rates, in addition to the two wells above, Desire has sufficient
resources to be able to drill two wells for its own account in the North
Falkland Basin. Thus, in combination with the two-well commitment entered into
by BHP Billiton south of the Falkland Islands, there is now the potential to
hire a rig for a minimum six-well drilling programme, thus defraying
mobilization/demobilization costs for all parties. Desire continues its efforts
to hire a suitable rig in partnership with all of the other companies involved
in Falklands exploration.

Given the size of Desire's exploration inventory, the Company may seek other
farm-in partners for other prospects, in addition to any wells drilled for its
own account, and further discussions, which may lead to additional farm-ins, are
under consideration.

For further information please contact:

Desire Petroleum plc 020 7436 0423
Dr Ian Duncan, Chief Executive Officer
Stephen Phipps, Non-executive Director

Seymour Pierce
Jonathan Wright 020 7107 8000

Buchanan Communications 020 7466 5000
Ben Willey
Ben Romney

Ho Ho Ho

Old Pugwash is flying now.

Sounds like we have got a good deal Capt, tally ho! shell ..shell


"It also said it may seek other farm-in partners for other prospects, in addition to any wells drilled for its own account, and further talks that may lead to additional farm-ins, are under consideration."

Excellent News - onwards and upwards should be a premium tomorrow after it hits the papers

Yes good news robstuff , now who is the partner and what % of the prospects,

I also think that when one partner sighs more will follow and sigh up

Nearly 5 and a half million shares traded in 1 hour,will be a intresting day tomorrow

squirrel2005 i hope you still holding.

http://www.smallcapnews.co.uk/article/Desire_Petroleum_finds_a_farmin_partner/4549.aspx

Falklands oil drilling prospects boosted by Desire Petroleum

http://www.mercopress.com/vernoticia.do?id=12724&formato=HTML


A poscard from the Falklands in the near future?

Desire Petroleum, the oil explorer with a field north of the Falkland Islands, jumped 12p to 46p after it signed an outline farm-in agreement with an oil producer, rumoured to be BHP Billiton, which has already signed a similar deal with Falkland Oil & Gas, up 6p at 126p. Rock-hopper Exploration, which has assets in the area, gained 4p at 56p and Falkland Island Holdings rose 42p to 372p.


A snippet in the telepraph:
Desire Petroleum, one of several Aim companies prospecting for oil in the Falkland Islands, surged 12 to 46p after it signed a farm-in agreement with an as-yet unnamed partner


Snippet in the Financial times:
Desire Petroleum , the Falkland-focused oil and gas exploration company, surged 35.8 per cent to 46.5p after it announced an agreement with a third party which could lead to the drilling of two new exploration wells.

Why would it need approval? and what do the awards refer to?

"The farm-in remains subject to certain awards and approvals by the Falkland
Islands Government which are being applied for and a further announcement,
including the final terms of the farm-in, will be made once the necessary awards
and approvals are in place."

can anyone shed any light on this statement, thanks

The only thing I can think of, is an application for a new or transfer of an exsisting licence. + Operator approval by the FIG.

"significant party" ?? individual, group, or company??

I look forward to a significant party myself, I wonder who the Party chief will be.

Ooopps forgot,

An extension of the time frame a licence is valid for.

Really disappointed to see the SP reaction today. I was expecting an awful lot more!

well the big question is how much have they given away so until that is known it's difficult to place a value on the sp

Its looks to be a fantactic deal when you think about it,FOGL gave away 51% on there deal we have given 3 prospects up and we might still hold a percentage in them as well,knowing phipps we will.

Capt how much you think that deal is worth to us 50 mill or more? to get a free carry in two holes is fantactic news.

$ 64 million dollar question Markymar

following the good news the SP has shot up, when the news wears off and the SP settles where do we think it may rest?
I realise this is a 'crystal ball' type question but anyone care to speculate, ie does anyone think it will retrace to 34p where the jump occurred or somewhere in the middle because of the farm-in?
Alex

Last July FOGL was about 80p. News of a possible farm in pushed the price to about 180. It then fell back to near 90 before recovering to 120 in the light of recent news from the Falklands. I think all the Falkland explorers are in for a bumpy ride but with an upward trend based on news flow over the next 3 months, but DYOR.

Robert Alexanderhow long is a piece of string question, I think it depends if your happy keeping what shares you have and holding and what price target you see at the end of the day your happy to sell at.

34pthe deal I see at moment is a fantastic deal and we dont know the full out come as yet but a strange one as I have not come across it before, but a deal got to be worth 30 million in my eyes easy capt stick your 2 p worth in this is more down your street its a cracking deal when you look at FOGL giving away 51% for nearly the same deal


robertalexander where do you see this share in 1 year? 2 years ?

If FOGL is the benchmark, Then Des looks cheap - at least 10% based on Mkt cap. Guess more info is required, particularly the party to the farm-in. Can't see it taking too long to get the statutory approvals, the FI govt will be just as anxious as everyone else to move this along.

Seymour Pierce have reiterated DES as a BUY/STRONG BUY as of yesterday

Markymar

Depends on rig availibilty. When drilling starts they will be up and away but how soon will that be? [another crystal ball question i fear.] I am not very good at holding shares for any length of time[though i wish i would].

i am not a holder but have all of these FI assoc oilies on my watch list and am biding my time but trying not too miss the boat

Alex