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

markymar - what's your view on FOGL?

leave them alone RKH are a buy

DES market cap 155 mill they have 5 to 6 billion as well and shallow water...news to follow soon

FOGL..............125 mill....very deep targets

RKH...............52 mill.....bargain they have 5 to 6 billion as well and shallow water

BOR .............127 mill....

cheers markymar, appreciate that. might just pick up some RKH

http://www.blocparty.net/uploaded_images/pugwash.gif

Ho Ho Ho

http://www.thisisnorthscotland.co.uk/displayNode.jsp?nodeId=149212&command=displayContent&sourceNode=150624&contentPK=20040439&folderPk=85744&pNodeId=150607

ROCKHOPPER SAYS NEW FALKLANDS DRILLING CAMPAIGN JUSTIFIED

08:50 - 03 March 2008





Uk independent Rockhopper says it has identified five oil and gas plays with a recoverable reserves potential of billions of barrels offshore the Falkland Islands and that there is a "substantial increase" in drillable targets.

Moreover, drilling by Shell 10 years ago may have just have caught the edge of one of the targets as oil was encountered by two wells drilled in 1998, one of which resulted in oil being brought to the surface.



Rockhopper's chairman, Dr Pierre Jungels, said: "We now have sufficient drilling targets to justify a drilling campaign, whether that means farming out or obtaining a rig as operator. Now that we have a larger number of potential drillable targets we can also begin to accelerate our search for a rig.

"The quality of the 3D seismic data, and the further insight into the basin it has allowed us, is extremely encouraging.

"In my experience, we now have a very high-quality prospect inventory from which to select a number of drilling locations. Work will now focus on refining the prospect inventory, including those previously identified in licences PL023 and PL024, in preparation for drilling or farming out."

The initial phase of Rockhopper's mapping covered North Falkland Basin licences PL032 and PL033, where 850sq km of 3D seismic data was shot in 2007.

The 1.9billion barrels figure is the "unrisked" estimate, compared with a "P50" calculation of circa 1.2billion barrels.

Rockhopper says its list of prospects does not include a number of additional leads which are still being investigated.

In addition, prospects have already been identified on licences PL023 and PL024 which the company reckons have P50 unrisked recoverable reserves of 2.5billion barrels.

Crucially, Rockhopper notes: "The 3D seismic has revealed that one of the exploration wells drilled by Shell in 1998, which (among 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.

"The directors (of the company) now believe that this thicker part of the fan prospect could therefore contain commercially viable accumulations of hydrocarbons."

The acreage, now held 100% by Rockhopper, was previously held by Shell, and two wells were drilled in 1998. Well 14/5-1 encountered oil &gas shows; well 14/10-1 saw oil recovered live to the surface.

The Rockhopper 2007 3D seismic survey overshot the well locations and also the unexplored eastern basin margin, which is currently an untested oil play.

"The data confirm the prospectivity of the acreage and have further reduced the exploration risk as more play types have been identified," said the company.

Rockhopper says it is to start advanced work on the data, which will include AVO (amplitude versus offset) analysis, imaging studies, geochemical modelling, further detailed log analysis, depth conversion and reservoir modelling. Among techniques already applied is CSEM. The company ran two controlled source electromagnetic surveys in the North Falkland Basin, both of which indicated the presence of discreet resistors in the area of the targets. It was in 2006 that Rockhopper contracted Offshore Hydrocarbon Mapping (OHM) of Aberdeen to conduct the surveys early that year. They covered prospect J1 and lead K. Those areas were also the subject of a 2D seismic survey, also acquired during January and February, 2006.

An extract from Evil Knievil's diaries on t1ps.com

He suggests a target price of 3.50 when drilling commences.

He hopes to suck a load of newby investors in and will bail out well before 3.50. He will then recommend DES as a raving short and make more money as the newbies panic and sell.
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A new week, a new record for oil

By Upstream staff


US crude oil futures surged to a record high as the weak dollar fueled commodities and geopolitical tensions kept bullish momentum intact.

Nymex April crude was up $1.55, or 1.52 %, at $103.39 a barrel, trading from $100.77 to a record $103.95, pushing past Friday's record $103.05.

In London, April Brent crude rose $1.55, or 1.55 %, to $101.65 a barrel, moving from $99.20 to $102.29.

Dont really understand which company is leading the charge, is it FOGL or DES? DES states that their farm in agreement with a yet to be named party for drilling two wells free of charge, and two more at their own expense,plus the two wells to be drilled by BLT/FOGL justify hiring a rig, which of course makes sense. However has FOGL/BLT agreed to this arrangement or is DES just trying to create a bandwagon?

halifax i think we will know a little more this week of the deal, they have the meeting in Edinburgh,all the clans will be there.

http://www.sartma.com/art_5023.html

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.

http://www.ft.com/cms/s/0/7051e8be-ea55-11dc-b3c9-0000779fd2ac.html

From today's FT:

Falkland hopes boost Desire
By Robert Orr and Neil Hume

Published: March 5 2008 02:00 | Last updated: March 5 2008 02:00

Two of the quartet of UK-listed stocks searching for oil around the Falklands closed at all-time highs yesterday.

Interest in the islands was reignited last month when Desire Petroleum signed a deal that should allow drilling to commence at some of its prospects in the region, five months after Falkland Oil & Gas struck an agreement with BHP Billiton.

Analysts pointed out that while there was evidence of oil, nobody had ever harvested commercial quantities.

Borders & Southern Petroleum and Rockhopper Exploration rose 12.6 per to 73p and 9.7 per cent to 79p respectively, both record highs. Desire rose 19.2 per cent to a 10-year peak of 79p.

Falkland Oil & Gas eased 1.9 per cent to 127p.

Pausing for breath today or the end of the surge?

I made it more buys than sells today so why the big drop? i guess a bounce will be on the cards.

Desire Petroleum downgraded to "outperform"
9:16a.m. - Seymour Pierce
LONDON, March 5 (newratings.com) - Analyst Peter Hitchens of Seymour Pierce downgrades Desire Petroleum Plc (EYX) from "buy" to "outperform."

In a research note published this morning, the analyst mentions that the downgrade in rating follows the sharp appreciation in the companys share price. The appreciation was driven by the news of Desire Petroleum's decision to farm out three of its prospects to a third party, who has agreed to pay for the drilling of two wells, the analyst says.

can you say anymore on here Marky?

No!

It was worth a go!

Hi Marky. I can't say I follow this line of chat but I am long on these- my biggest holding since the uplift over the last 2 weeks. In my situation would you say I am right to hang on? I feel Ok about the potential and expect ups and downs.

coeliac1,

There lots of things going on today and tommorow and i hope all meetings go well and we hear some good news from Desire and other operators soon.

Its getting exciting as we get closer to drilling and the SP will reflect this.

Good Luck

I think we might just see a new high today!

methinks you are right!

Now i wonder what FINN has heard

http://www.sartma.com/art_5077.html

LOCAL EXPLORATION SHARES: TIME TO HANG ON

By J. Brock (FINN)

I remember trying to give people courage about Desires shares back when they went on sale in the late 90s.
The advice I gave was not to spend the rent money (mortgage money is applicable today) on these shares but to
use disposable income for them. This advice rings true today when valued Desire, FOGL, Rockhopper and
Desire shares are at a premium.
My best advice to shareholders is to hang on to them, especially now when exploratory drilling could reveal vast
reservoirs of crude.

With daily living costs rising exponentially it is becoming more difficult to skimp on the food money to save for
shares well, OK if you are dieting. I hear the water rate wont be going up this year bur I suggest people
wanting shares in local exploration companies wait until the price drops and then get in, rather than buying
when prices are high and selling when share prices decline.

For those with shares in local exploration companies hold on to them. They are worth every penny you spent.

Taken from todays Penquin News.


A MEETING of oil exploration
companies is taking place in
Edinburgh today.
All the businesses currently involved
in the Islands will be there
including FOGLs new farm-in partner,
BHP Billiton.
Director of Mineral Resources
Phyl Rendell is attending the meeting
at the British Geological Society
in Edinburgh. She said the meeting
was a chance to talk about issues
relating to planning or drilling
and the companies work commitments.
She added: It also gives them
the opportunity to ask any questions
as they get closer to drilling.
The news of Desire Petroleums
farm-in has prompted share prices
to rise. Closing at 46.50p on February
25, having risen 25p following
the news, yesterday shares were
continuing the trend, trading at
75.50p.