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

4 November 2008

PRESS RELEASE

WESTMOUNT ENERGY LIMITED

FINAL RESULTS FOR THE YEAR

ENDED 30 JUNE 2008

1. Desire Petroleum Plc (Desire)

Desire announced on the 14 August that it had signed an agreement with Arcadia Petroleum
Ltd whereby Arcadia will drill two wells in the
North Falkland Basin at no cost to Desire. In addition the Falkland Island Government has
granted Desire and Arcadia new acreage adjacent to
Desire's existing acreage in Tranche 1.

In addition Desire has sufficient resources of its own to drill two additional wells in
their licence area.

Following this announcement Desire and Arcadia are actively seeking a rig and there are
signs that the rig market is softening and they
are hopeful that subject to engaging a rig, drilling could commence in the first quarter 2009.Desire have confirmed that the drilling
opportunity is economically compelling even in the current oil price environment.

; ))

Investors pile into small oils

http://www.investorschronicle.co.uk/Columnists/GuestColumnists/article/20081104/e3f225c4-aa65-11dd-8c7b-00144f2af8e8/Investors-pile-into-small-oils.jsp

Daniel Stewart & Company Plc
Becket House,
36 Old Jewry,
London EC2R 8DD

Rockhopper (RKH.L) HOLD 50p (from SELL 40p)

Desire (DES.L) HOLD 60p (from Sell 40p)

very interesting article & without rubbing salt in the wound the following sums up the whole thing:
"Analyst Tim Heeley of Daniel Stewart put the surge into smaller oil stocks down to a significant return of private investors, revisiting stocks they deem to be oversold. But Mr Heeley cautioned bluntly against over-enthusiasm: "When the quality bounces, the crap does too."

Like us, he is particularly unsure about those companies exposed to the Falkland Islands, an investment theme that has long captured the imagination of small investors despite the logistical challenges it entails. Falkland stocks include Rockhopper, Borders & Southern, Desire and Falkland Oil & Gas: "There is the perception they are oversold, which they are not, because they don't have anything," he says, referring to the conspicuous lack of exploration success, let alone profits or cash flow."

Harry i think he sits on the fence as he cant get his head round how huge the Falklands might just be, the best report I have read was from Oriel securities who went in to great depth into Desire Petroleum and other Falkland plays and is the best I have read and if you can get your hands on the report am sure it will open your eyes.

I dont know if anyone else has read it and what they think but personally it goes in to great depth and gives you a good insight of the possible upside.

I have got to admit that when things look likely to begin happening with DES, RKH & FOGL I would certainly want to have a stake in all three, but am happy to wait until the spring as my cash can be put to better use elsewhere. I can't see any reason to buy now; just hope I don't miss the boat!

Harrycat the boat hasn't set sail yet!

.

True, but have just got to make sure I have the cash available when it does. Just on hype & speculation these will surge at some point, imo.

Todays penguin News

Phyl Rendell, Director of
Minerals and Agriculture
attended the International
AAPG (American Association
of Petroleum Geologists) in
Cape Town, South Africa.
Cape Town is a key destination
for petroleum geologists
that have an interest in oil potential
in the South Atlantic,
said Mrs Rendell, adding that
both BHP Billiton and Arcadia
Petroleum Limited have licences
in offshore southern
Africa, as well as in the Falklands
and there is potential to
link exploration activities.
Meetings were held with
Rockhopper Exploration and
Borders & Southern Petroleum
during the event and the stand
attracted attention from a
number of other oil company
representatives interested in
the area.
Mrs Rendell said that with the current drop in the oil price and a
perceived downturn in economies globally, there was an opportunity
to learn from the industry about the impact these factors may have on
future activities. Although there is much uncertainty about global
demand for oil, it was made clear at the Convention that the Falklands
remains a place of interest and potential investment for oil companies
and some industry representatives commented that rigs may become
less costly and more readily available as a result.

http://oilbarrel.com/home.html

07.11.2008
Drillers To Focus Their Sights On The Falkland Isles During 2009

Hello...is there anybody viewing this BB?

is there anyone rash enough to invest at this time in some little E&P company playing in Falklands?

cynic maybe be some one with a back bone,u cant see the wood from the trees.

backbone or bonehead or or someone who thinks a share price has fallen so low that surely it can't fall further ..... like WLW or MDX

Hi Cynic
I was rash enough to buy a few shares in different companies before they went down, Des included.

http://www.sartma.com/art_6068.html

H E The Governor's Christmas Message for 2008


The next two years may also see a resumption of oil exploration in our waters, or at least progress to renewed drilling. The government is rightly not counting on any possibility of oil revenues in its budgetary forecasting, but we need to prepare, one way or the other. London is in the process of agreeing terms of reference for a study to see what further contingency planning may be necessary and has given a firm reassurance that the UK Government will continue to support Islander ambitions for the development of a successful hydrocarbons sector in the Falklands. And internationally the UK Government remains as firm as ever in protecting British sovereignty over the Falkland Islands.

http://www.sartma.com/art_6091.html

Prime Minister Gives Falklands 100% Backing

Falklands : Prime Minister Gives Falklands 100% Backing
Submitted by Falkland Islands News Network (Juanita Brock) 01.01.2009 (Current Article)

"AS ALWAYS, MAKE IT CLEAR IN ANY SUCH DISCUSSIONS THAT WE HAVE NO DOUBTS ABOUT THE UNITED KINGDOM�S SOVEREIGNTY OF THE FALKLAND ISLANDS. "

PRIME MINISTER'S NEW YEARS' MESSAGE

"TODAY WE�RE NOT ONLY WELCOMING IN THE NEW YEAR, BUT ALSO A NEW CONSTITUTION FOR YOUR ISLANDS. THIS CONSTITUTION BOTH REITERATES THE UNITED KINGDOM�S COMMITMENT TO YOUR RIGHT TO SELF DETERMINATION AND ENHANCES LOCAL DEMOCRACY AND ACCOUNTABILITY. I WELCOME THIS AND I RECOGNISE THAT, THROUGH YOUR FULL PARTICIPATION IN THE CONSTITUTIONAL REVIEW, YOU HAVE SHOWN YOUR UNEQUIVOCAL DESIRE TO REMAIN BRITISH.

2008 HAS BROUGHT ENORMOUS CHALLENGES WITH THE DOWNTURN IN THE GLOBAL ECONOMY. I KNOW THAT YOUR GOVERNMENT�S FINANCIAL SITUATION IS UNDER PRESSURE, AND THAT YOU ARE TAKING STEPS TO FIND BUDGETARY SAVINGS. NONE OF US IS IMMUNE, AND WE ALL HAVE TO DO OUR BEST TO PLAN AGAINST FURTHER SHOCKS TO THE GLOBAL ECONOMIC SYSTEM.

EXPLORATION FOR OIL AND GAS AROUND THE FALKLANDS ISLANDS CONTINUES. THE BRITISH GOVERNMENT WILL CONTINUE TO SUPPORT YOUR AMBITION TO DEVELOP THIS INTO A VIABLE AND SECURE SECTOR OF YOUR ECONOMY. WE WILL PROVIDE GUIDANCE AND ADVICE TO ENSURE THAT YOUR GOVERNMENT IS ABLE TO PLAN FOR AND MANAGE ALL OF THE PROBLEMS AND RESPONSIBILITIES THAT COME WITH A HYDROCARBONS SECTOR, BE THEY HEALTH AND SAFETY, SECURITY, OR SOCIO-ECONOMIC.

BUT EXTRACTION IS STILL A FAR-OFF AND UNCERTAIN PROSPECT. SO YOUR GOVERNMENT IS RIGHT TO TRY TO DIVERSIFY YOUR ECONOMY FURTHER. SUCCESS WILL OF COURSE DEPEND ON A CLOSE WORKING RELATIONSHIP BETWEEN THE GOVERNMENT AND BUSINESS SECTORS, COMMITTED TO THE SAME GOALS.

MAINTAINING PHYSICAL LINKS BETWEEN THE UNITED KINGDOM AND THE FALKLAND ISLANDS IS IMPORTANT. I�M PLEASED THAT THE MINISTRY OF DEFENCE HAS BEEN ABLE TO DELIVER A NEW AIRBRIDGE CONTRACT, WITH A MORE REGULAR SERVICE. I KNOW THE IMPORTANCE OF THIS AIRBRIDGE TO YOUR GOVERNMENT�S PLANS TO DEVELOP BUSINESS AND TOURIST TRAFFIC. I HOPE THAT THIS NEW SERVICE WILL SUPPORT THAT.

I AM SORRY THAT THE LARGE ARGENTINE NEXT OF KIN VISIT TO THE ISLANDS HAS STILL NOT TAKEN PLACE. I KNOW THAT YOUR GOVERNMENT WANTS THIS VISIT TO HAPPEN. I HOPE THAT THIS IS THE YEAR WE CAN FIND AN ACCEPTABLE WAY FORWARD.

WE SHALL CONTINUE TO ENCOURAGE THE ARGENTINE GOVERNMENT TO CO-OPERATE ON MATTERS OF MUTUAL INTEREST AND CONCERN, SUCH AS THE CONSERVATION OF FISHERIES IN THE SOUTH WEST ATLANTIC, AND TO BUILD BUSINESS AND COMMUNICATIONS LINKS BETWEEN THE ISLANDS AND ALL OTHER COUNTRIES WITHIN THE REGION. WE WILL ALSO MAKE IT CLEAR THAT WE WANT TO WORK WITH ARGENTINA IF WE ARE TO ADDRESS THE WORLD�S FUTURE NEEDS AND PROBLEMS, FROM FINANCE TO TERRORISM, AND DRUGS TO NON-PROLIFERATION.

WE SHALL DISCUSS ALL THESE ISSUES OPENLY WITH ARGENTINA. BUT WE WILL, AS ALWAYS, MAKE IT CLEAR IN ANY SUCH DISCUSSIONS THAT WE HAVE NO DOUBTS ABOUT THE UNITED KINGDOM�S SOVEREIGNTY OF THE FALKLAND ISLANDS. THERE CAN BE NO NEGOTIATIONS ON THE SOVEREIGNTY OF YOUR ISLANDS UNLESS AND UNTIL SUCH TIME AS YOU SO WISH.

NEXT YEAR, YOU WILL HAVE ELECTIONS FOR A NEW COUNCIL. THAT WILL BE AN IMPORTANT EXPRESSION OF THE DEMOCRATIC TRADITION IN THE ISLANDS THAT WE SHALL SEEK ALWAYS TO UPHOLD.

I WISH ALL ON THE FALKLAND ISLANDS HAPPINESS, GOOD HEALTH AND GOOD FORTUNE FOR 2009. "

http://www.falklandnews.com/public/story.cfm?get=5276&source=3

Falklands Mark Dr Colin Phipps' Passing
January 13, 2009
by J. Brock (FINN)

DR COLIN PHIPPS

Dr Colin Phipps, founding Chairman of Desire Petroleum plc, former Chairman of Falklands Conservation and former Member of Parliament, Westminster, died peacefully in hospital, with his family in attendance on Saturday night 10 January 2009.


Dr Phipps long distinguished career culminated in being a founder member of Desire Petroleum in 1996


His determination ensured that Desire participated in the first round of drilling in the North Falkland Basin in 1998. Due to his continuing dedication Desire now operates 6 licences in the area, Tranches C, D, F, I, L and the recently awarded PL034.


Dr Phipps instinctively knew that the North Falkland Basin had a proven working hydrocarbon system with an excellent oil source rock. In addition, recent studies have indicated there is also a significant gas potential in the basin an added bonus for acting on his exhaustive knowledge of the business.


He oversaw detailed exploration for oil and gas prospects that had been identified with a mid-estimate, un-risked recoverable oil potential exceeding 3.5 billion barrels and gas over 9 trillion cubic feet.


Always keen to share his expertise, Dr Phipps often was the squeaky wheel when it came to FINNs hydrocarbons reporting. He was a personal friend and will be sadly missed.


J. Brock (FINN)

http://www.bgs.ac.uk/falklands-oil/download/news.pdf

Falkland Islands Government
Department of Mineral Resources
Newsletter: December 2008