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

North Falkland push shifts up a gear

By Upstream staff


UK junior Rockhopper Exploration said it is moving into the last phase of preparations before kicking off a drilling campaign in the North Falkland basin.

We have identified a number of targets in PL032 & PL033 on the 3D seismicwhich are sufficiently low risk for us to drill in addition to the Ernest prospect and we are waiting to see what the interpretation of the new 2D over Weddell shows us, said Rockhoppers chairman, Pierre Jungels.

The outfit has hired SPD Group to carryout a range of well engineering services, while at the same time Thompson Knight Global Energy Services has been appointed to assist in its drilling farm-out campaign.

The company has also hired RPS Energy to undertake an Environmental Impact Assessment (EIA) on licences PL032 and PL033 in preparation for drilling. The EIA on licences PL023 and PL024 is already in progress.

CGS Veritas has been commissioned to reprocess the short offset 3D data over licences PL032 and PL033.

Following the reprocessing and evaluation of this data and completion of the EIAa, the company expects to be ready to drill two to four targets across its acreage.

These two to four wells, when added to the four wells to be drilled by Desire and its partner result in a potential eight well campaign in the North Falkland basin.

Rockhopper estimates that the acreage licensed to them may contain over 3.5 billion barrels of oil.

Sorry but I missed the name of their drilling/farm out partner?

The partner is still a mystery halifax. All will be reveiled in time!

Fair enough but why the delay in making the disclosure? What matters is that their partner has sufficient cash resources to fund a very expensive drilling programme. FOGL has already achieved this by partnering with BHP.

They need the nod from the Falklands Government before it's a go.

Halifax i hope you read the bit about the possible 8 holes drilled in the NFB,news before the end of the month.

Markymar that might be a wee bit difficult without a rig!!

nick one fae abbberdeen.......baaaaaa

Todays Penquin News


THE Chairman of Desire
Petroleum, Dr Colin Phipps, is
expected to release his annual
report on Monday and industry
insiders are hopeful the company
will reveal the identity of its
farm-in partner.
In February, Desire announced
it had accepted the terms of an
offer from a significant party
to farm-in to three of the eighteen
exploration prospects they had
identified in the North Falklands
Basin, however the identity of the
partner was not revealed.
Since then, the companys
share price has tripled in price.
The Times Online this week reported
that the agreement was
rumoured to be with private Norwegian
group Arcadia, however
Desires Falklands spokesperson,
Lewis Clifton, was unwilling to
confirm this, saying that any announcement
had to come via the
London Stock Exchange.

Gossip

Article on Bloomberg:

Borders & Southern Rises to Record on Speculation of Shell Bid

By Sabine Pirone and Sarah Thompson
April 28 (Bloomberg) -- Borders & Southern Petroleum Plc, a U.K.-based company that explores for oil near the Falkland Islands, rose to a record in London trading on speculation Royal Dutch Shell Plc may make a takeover bid.

Borders & Southern advanced as much as 5.75 pence, or 7 percent, to 89 pence and traded at 87 pence at 9:14 a.m. That's the biggest gain since May 2005 and boosts the London-based company's market value to 169 million pounds ($334.9 million).

``Rumors of Shell's interest in Borders & Southern have been around for a while,'' Jimmy Yates, a London-based trader at CMC Markets Plc, said today by telephone. ``The price being bandied around is 220 pence.''

``We have not been approached by anyone,'' Borders & Southern Chief Executive Officer Howard Obee said in a telephone interview today. Borders & Southern is ``not aware of any interest by Shell,'' Obee said.

Shell's press department couldn't immediately be reached for comment.

Sabine Pirone in London at +44-20-7673-2356 or
spirone@bloomberg.net.

To contact the editor responsible for this story:
Kenneth Wong at +49-30-70010-6215 or kwong11@bloomberg.net

http://www.onlineopinion.com.au/view.asp?article=7293&page=0

The prize of oil
By John Lea - posted Tuesday, 29 April 2008

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/04/29/cxmktrep129.xml

SMALL TALK


Borders & Southern Petroleum, one of several companies prospecting for oil off the Falkland Islands, rose 1 to a record high of 84p on vague takeover rumours. One rather optimistic story doing the rounds was that oil giant Royal Dutch Shell was mulling a 220p-a-share approach. Sceptical dealers pointed out that the Falklands' oil stocks are very popular with day traders and as such tend to be the subject of wild speculation.

Desire Petroleum lost 3-3/4p to 87p this morning, as it saw its profits down, with Daniel Stewart reiterating its 'sell' recommendation and 20 pence target price, whilst Seymour Pierce retained its 'outperform' stance.

How can Daniel Stewart have a target of only 20p for DES? They really must believe that the company is never going to get a rig!

Until they come clean and name their prospective drilling partner this is a short.

Desire have now said today that "reserves now exceeds four billion barrels of recoverable oil."now factor in for every 100 mill found will put 3.20 on the share price.

Does not take a brain to work the huge posible upside on this share Halifax good luck with your shorting.

Seymour Pierce published this after Farm in agreement
Desire Petroleum Farm-in agreement

Desire Petroleum announced yesterday that it has accepted an offer from a
third party to farm into Desires acreage in the North Falklands basin. This
third party will farm into three of the groups prospects. The farm-in terms
remain subject to a number of conditions and once these are negotiated, the
full details will be published. Desire Petroleum has five licences in the North
Falklands basin and the recent 2D and 3D seismic survey has identified
significant prospectivity, with the top ten prospects having potential
recoverable reserves of over 2.3 billion bbl.
Desires main prospects on tranches C & D
Prospect Reserves (mmbbl)
Liz 660
Anna 297
Beth 272
Rachel 179
Ninky 122
Ann 202
Pam 428
Total 2,217

Source: Desire Petroleum
The third party will secure a rig and pay for the mobilization and
demobilization of the rig and the drilling of two prospects. This will probably
be done in conjunction with BHP Billiton which has farmed into Falkland Oil
& Gas acreage in the south and has committed to drill two wells as part of
its own farm in terms. Overall, we believe that there will be a six well drilling
programme with the costs of mobilization and demobilization being shared
between the relevant parties.

This is very exciting news as it accelerates the potential of a new exploration
campaign occurring in the Falklands in the short term. On the best of farm
out terms, we would see Desire Petroleums equity considerably reduced.
That being said the potential rewards remain huge. We believe that a 100
mmbbl discovery in the Falklands Islands could be worth US$1.4 billion
equivalent to approximately 320 pence per share. Given the prospectivity of
the acreage this could provide significant upside for shareholders.

This move accelerates the timetable of the drilling programme in the area.
We believe that this will lead to increased interest in shares. We maintain our
buy recommendation.

Daily Bore 26 February 2008
3 Seymour Pierce Research
Rockhopper Exploration - Read through from
Desire

The news of Desire Petroleums agreement to farm out its acreage should
be seen as good news for Rockhopper Exploration. The company recently
finished the interpretation of its 3D seismic on licenses PL032 and PL033,
where the management has now identified prospects with P50 reserves of
more than 1.2 billion bbl. This is in addition to the prospects which were
identified in the 2D seismic, on licences PL023 and PL024, with P50
reserves of 2.5 billion bbl. The company was waiting for the interpretation of
the 3D seismic to be completed before it decided how to proceed to the
drilling phase.

Rockhopper Explorations top prospects from 2D seismic
Name P10 P50 P90
Beauchene 216 145 98
Bleaker 387 193 119
Concordia 60 44 20
Dolphin 543 287 49
Ernest 300 130 50
Golding 125 49 4
Keppel 812 580 365
Pebble 298 186 97
Saunders 679 434 171
Usborne 290 220 150
Weddell 394 254 108
Total 4,104 2,522 1,231

Source: Company data

Desire Petroleums move should make things easier for the management of
Rockhopper. Four wells in the North Falkland have now been sorted out and
this significantly increases the potential of more wells now being drilled on
Rockhoppers acreage. The company will now have to decide whether it will
fund the drilling of the wells whether from funding the wells itself or
bringing in a farm-in partner of its own. The latter course of action should
become easier given that there are now very few remaining opportunities for
interested parties to acquire acreage.

The acceleration of a drilling programme in the Falklands should lead to
renewed interest in Rockhopper Exploration which remains one of our
preferred E & P companies. We maintain our BUY recommendation.

Markymar DES referred to "potential reserves" and we all know that means "pie in the sky" until the drill bit strikes oil. Also from their RNS it appears they have yet to sign the farm in agreement with the "anonymous" partner. I hope this does not turn out to be another collosall ramp up as happened a couple of years ago.

A bit like FOGL "POTENTIAL RESEVES" pie in the sky!!!

Desire have done a lot more work than FOGL on there acreage and the NFB has been drilled and plays tested and live oil has come to the surface where in the south no holes have been drilled and nothing tested.

Now it would be good to hear you justify why desire is a short in your opinion and why you hold FOGL which arent even drill ready have sold out have there acreage for two holes to be drilled and have no drilled date confirmed and are 40% owned by RAB.

Capt i see we have found an elephant at long last.

http://www.desireplc.co.uk/pdfs/annual_report_07.pdf

Page 8.

1. Prospect Inventory
All of the seismic data covering Tranches F, I and L were
re-interpreted during the year. In addition to confirming
the existing prospects, twomajor, new prospects were
identified: Jacinta and Barbara as shown in Figure 1.
The Jacinta Prospect is a large Aptian sand-pinch-out
stratigraphic trap with a recoverable potential over 1
billion barrels of oil. This sand is the same as that with
good oil shows in the 14/9-1 well. This is a high-risk
prospect as stratigraphic traps are invariably less welldefined
than structural traps.
In contrast, the Barbara Prospect is a structural trap with
a recoverable potential of 450million barrels of oil.
Both these prospects are significant additions to the
Prospect Inventory which now includes 18 prospects
and brings the potential reserves on the Desire licences
to over 4 billion barrels of recoverable oil.

Perhaps RAB feel the agreement with BHP/BLT has greater substance than the intangible (so far) words of DES directors,especially as we all remember what happened the last time DES sp went north of 1!

You still not explained why it is a sell ?

As for the directors I remember why back when Desire Petroleum has no money left and could of gone tits up and it didnt and it was all down to a Director called Colin Phipps who lent money in to the company over a 3 year period to keep it a float because he believed in what he was sitting on. Now that is a director who is going the extra mile. I also wish him well and hope he beats his cancer and gets to see Desire drill and hit the back stuff as no one deserves it more than him with his tireless work over the years.