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

Some info on the joint meeting +Dr Phipps and well designs etc.

By J. Brock (FINN)

A meeting of the Mineral Resources Committee took place at 1400hrs on Friday, 09 May 2008 in the Mineral Resources Department conference room. Present were Cllrs Hansen (IH), Summers (MS), and Birmingham (JB), as well at the Chief Executive Mr Tim Thorogood, Attorney General Mr David Pickup QC, Director of Agriculture and Mineral Resources Mrs Phyl Rendell, Miss Pippa Christie and Mrs Katrina Stephenson. Apologies came from Cllr Janet Robertson.

The minutes of the meeting held on 21 February 2008 were confirmed and only one matter, the confirmation that calcified seaweed would be extracted by contract by the farmer in question.

Mrs Phyll Rendell, Head of the Mineral Resources Department, has reported that since the last meeting in February there has been a hive of activity with two overseas visits that have been widely reported.

In early March a joint operators meeting took place in Edinburgh. Mrs Rendell and Councillor Rendell attended the meeting. Mrs Rendell, Phil Richards and Bob Gatliff from BGS met with company representatives privately during the main event. Meetings were also held the day before the joint session, reports Mrs Rendell

According to Mrs Rendell, Licensees have joint meetings in London every few months but it was agreed when all the companies travelled to Stanley for meetings in October last year that a joint session hosted by FIG/BGS would be appropriate to ensure that both industry and the regulators could have a further opportunity to discuss matters related to offshore exploration and coordinate activities. She went on to say that all the licensees were represented and a very useful dialogue was had, particularly in relation to data sharing and release and guidelines for well designs.

Attendance at the American Association of Petroleum Geologists (AAPG) convention in San Antonio went well with the object being to fly the flag after having taken a year off to attend the Falklands Forum. It was important to learn about innovations in the oil industry as well as meet new contacts and keep in touch with old ones.

Dr. Colin Phipps, a founder of Desire Petroleum Plc has been commended by the Director of Mineral Resources in the Falklands Mrs. Phyl Rendell. Mrs Rendell said she was sorry to hear that Dr Phipps had to retire due to ill health. He has been Chairman for te past 12 years and stuck with it, she said. Dr Phipps and his team took over abandoned blocks and were responsible for the first 3D seismic in the Falklands when other exploration companies couldnt afford it. Cllr Hansen will forward the Committees gratitude and thanks to Dr Phipps in the UK.

There are a host of promotional events that it would be good to attend if the budget allows such as an important South African event with relevant companies looking at the South Atlantic. The next AAPG meeting is in June in Denver, Colorado in the United States and a meeting of NAPE in Huston Texas in January 2009. It is important to attend these meetings and conferences to keep abreast with what the industry is doing and to keep in touch with important contacts.

http://www.internationalpavilion.com/SanAntonio_Talks/AAPG%202008%20San%20Antonio%20-%20Falklands.ppt

http://business.timesonline.co.uk/tol/business/markets/article3987826.ece

Rumour of the day

Desire Petroleum, which is exploring north of the Falkland Islands, rose 11p to 104p on talk of a bid from John Fredrikson, a billionaire Norwegian. But it is thought the company has an outline deal with Mr Fredrikson for which it is awaiting government approval. It may also have to issue new shares to finance itself if the deal collapses.

Rockhopper, the Falkland Islands explorer, rose 2p to 110p after raising 3.8 million in a share placing. It has committed to funding 15 per cent of drilling costs for Desire Petroleum, another Falklands explorer, which rose 2p to 107p. Desire has been talking up its prospects, but Tim Heeley, a Daniel Stewart analyst, pointed out that Rockhopper would need ten times more cash to fund its commitment to Desire, an indication that Desire is a long way from being able to drill. Mr Heeley reiterated sell advice on both stocks, with targets of 20p on Desire and 25p on Rockhopper.

Interesting angle on things, Nambu.
Admittedly none of these explorers have conclusively found oil yet, so the sp has been hyped up on the weak $, high crude price & hope. Also, it will be interesting to see how the sp holds up when they start to drill, as the strike rate is not going to be 100%. Dusters (or the equivalent subsea) will knock the sp down, but good for the active traders though. Maybe the safer plays are the ones with huge backing from the oil majors?

All good points HARRYCAT but I think a prediction of 20p is taking a huge gamble that oil is NOT under the sea in the Falklands. You'd have to be very brave to short DES IMO.

I hold this stock, so 20p would be very bad news & I think unlikely in the near future, hence I am still holding. But it does beg the question as to what the valuation of DES 228.8m shares is based upon. I am assuming the answer is estimated, untapped reserves @ $130 per barrel?

I recollect this valuation of Heeley as being of months back - before news of the possible farm in. How can you make a new valuation without knowing the terms of the buy in?
The new partner will have access to a lot more information than Heeley and the eventual deal will show how good it rates the Des assets. Only then can a short term price be set, that could be blown out of the water once drilling commences.

http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=&xml=/money/2008/05/27/ccseas127.xml

Oil crisis triggers fevered scramble for the world's seabed
Last Updated: 10:49am BST 27/05/2008

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

BUY
CONFIRMED

Buy failed, according to bb bullsh**, But I see those clever people have managed a 2000% increase since 2006. Why does anyone take them seriously!

britishbulls is pish, marky.....if thats how u want to waste your life then so be it

http://www.mediafire.com/?0jmxdrwwh9p

Edison investment report on Rockhopper

http://www.sartma.com/art_5390.html

PARTIAL LIFTING OF OPEN-DOOR LICENSING SUSPENSION


The Falkland Islands Government has (from early April) partially lifted the suspension on open-door licensing. The partial lifting of the suspension applies only to blocks 25/7, 8, 9, 12, 13, 14b, 17 and 18. A copy of the new guidance notes for applicants can be downloaded here.

http://www.bgs.ac.uk/falklands-oil/download/NotesApril2008.doc

http://www.falklandnews.com/public/story.cfm?get=4978&source=3

GOVERNORS ADDRESS TO THE OPENING SESSION OF LEGISLATIVE COUNCIL: 28 MAY 2008

The Department of Agriculture will continue next year to provide the necessary technical support and data collection to enable farmers to make informed choices and business decisions. The establishment of an appropriate internationally recognised scheme of organic certification for agricultural products should be completed, with a view to increasing returns to participating farms. The creation of the Rural Development Strategy Group led by Cllr Hansen will focus on a number of key areas to continue the push towards economic self-sufficiency in camp; with new developments in communications, opportunities are improving though the challenges are still significant.


On minerals, although Falklands Gold and Minerals left without success, the data they bequeathed us will be of huge importance in years to come. In hydrocarbons, the prospects for another drilling round look good. The year has seen the completion of a major 3D Seismic survey in the southern basin, and various other surveys in both southern and northern basins in preparation for drilling. There has been a significant farm-in to the FOGL acreage in the south-east, and there is interest in the Desire Holdings in the North. Drilling commitments therefore remain on track and new activity can be expected to materialise in the coming months. Open door production licencing has been re-opened for a limited area in the north to encourage potential bidders.


The tasks of the Minerals Department next year will be to facilitate drilling programmes by advising licencees on the required environmental, health and safety and technical approvals in order to bring rigs to the Islands. From the industry perspective, some easement in the market for drilling rigs combined with unprecedented oil prices makes the prospect of drilling in 2009/10 much more likely. As in the first drilling round, it will be the role of FIG and FIDC to ensure that every possible opportunity is provided to local companies to provide the support services required, and to maximise local involvement in the drilling process.

Barclays out any comments before I top up?

Should have a better idea after AGM tonight on future plans!

http://www.mercopress.com/vernoticia.do?id=13670&formato=HTML

Falkland Islands flourishing upbeat assessment in London

I think DES is starting to realise the IC article that it is only worth 20-25p.

little more time is needed!

Like 2-3 years!