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

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

http://www.mercopress.com/vernoticia.do?id=15787&formato=HTML

Dr. Colin Phipps, a visionary of the Falklands oil future

Dr Colin Phipps, long linked to the Falkland Islands and one of the driving forces behind the promising frontier oil industry passed away in London on January 10.


His visit is considered the precursor to the Shackleton Team visit which helped turn off the apathy about the future of the Islands.

Colin Phipps, then Member of Parliament for Dudley West, was an experienced oil man, with an enviable track record in the business and with a vast knowledge and experience of oil and politics of Latin America.

He undertook the visit under the guise of a UK Parliamentarian trip. Oil was very much a factor in that visit; Professor Griffiths of Birmingham University had earlier reported to then Prime Minister Callaghan of the probability of significant quantities of oil offshore the Falklands, following little known about deep sea drilling programmes.

That was the first of a great many visits undertaken by Colin Phipps to the Faklands becoming a firm and steadfastly loyal supporter of the Islands.

In 1977 he wrote a paper "What Future for the Falklands?" for the Fabian Society, which became one of those must-have papers during and post the 1982 Falklands War.

As a former Chairman of the UK Falklands Foundation, he could see the benefits of merging both that organisation and the Stanley based Falkland Islands Trust, which subsequently became Falklands Conservation.

Dr. Phipps style was straight and frank, he wrote and spoke as he found, as things go did not stand him well for a future in UK politics.

A geologist by profession he obtained a first class degree from University College, London, and a PhD from the University of Birmingham and achieved wide industrial experience within the international resources sector.

Dr. Phipps became aware of the potential of Falklands oil 30 over years ago. When the opportunity presented itself, he became the driving force to launch Desire Petroleum Limited, which offered an early investment opportunity to Falkland Islands residents.

Later, re-launched as Desire Petroleum plc, the company secured independent acreage in the North Falklands Basin, as well as shareholdings in acreage held by Lasmo plc and International Petroleum Corporation. When the major players pulled out of drilling exploration in late 1998, Colin's determination kept alive the notion of Falklands Oil for several years, when the oil industry interest in frontier areas slipped into the economic doldrums.

Under Colin's leadership Desire has grown into an exciting exploration company with a leading position. His drive and determination, in many ways raised a standard for other small independent companies to aspire to.

He has undoubtedly fulfilled an absolutely pivotal role of keeping Falklands oil prospects alive. A commentator recently mused "if oil is ever found off the Faklands it will be because of him".

That seems a most fitting accolade, and regrettably his passing means he will not be here with us to turn on the oil tap.

http://www.smallcapnews.co.uk/article/Oil_Gas_RoundUp_16_January/6493.aspx

Friday, January 16, 2009

Dr Colin Phipps, founding Chairman of Desire Petroleum (DES), passed away on Saturday 10 January 2009. An early believer that there is oil in the Falkland Islands, Colin Phipps kept the faith when all the big boys lost interest after the first, and so far only, Falklands drilling campaign. With rig rates now falling, perhaps his dream of a commercial discovery will be realised sooner rather than later - a fitting legacy for his enthusiasm for the Islands

http://www.guardian.co.uk/uk/2009/jan/28/falkland-islands-oil-drilling-impact/print

Falklands' new dawn: islanders plan future around 18bn barrels of oil

Oliver Balch in Port Stanley guardian.co.uk, Thursday 29 January 2009 00.05 GMT

Article historyEarly evening chatter in the Victory bar in Port Stanley used to touch on squid hauls and cruise liner schedules. Now, as the locals sip on imported pints of British beer, a far more lucrative proposition is grabbing their attention: oil.

According to the latest seismic surveys, the Falkland islands are sitting on an estimated 18bn barrels. Prospecting companies operating on the islands say they plan to start drilling later this year. With an already affluent population of about 3,000, Falklanders are anticipating a windfall that could make them one of the richest populations on the planet.

"Even if they [the oilfields] produce [only] a billion barrels of oil, the impacts in terms of revenues per head for the Falkland Islands is going to be gigantic," says Sam Moody, managing director of Rockhopper Exploration, one of the three companies with exploration rights to the Falklands.

But the Falklanders aren't quite the oil barons of South America yet. Several obstacles lie in their way. The first is whether the estimates prove to be true - and that will mean getting hold of a rig for preliminary drilling. During the oil price boom, rigs were prohibitively expensive, costing as much as $600,000 per day. But with oil prices coming back down, rigs are becoming more available, and concession holders are confident one can be procured.

Then there is the question of economics. Earlier attempts to prospect in the mid-1990s were abandoned when oil prices crashed below $10 a barrel.

These days, prospectors are sanguine about the latest drop in oil prices. Ben Brewerton, a spokesman for Falkland Oil and Gas, says that drilling would still be viable at prices as low as $20 per barrel, given the size of the expected finds.

The risk of spills and other environmental fallouts represents another possible threat to the oil industry's progress. As well as being a haven for penguins and seals, the Falklands boasts the world's largest breeding population of the black-browed albatross.

Phyl Rendell, director of minerals and agriculture for the Falklands, says the islands' authorities are requiring the highest environmental requirements for oil operators.

More worrying is the political risk. Three hundred miles away to the west sits Argentina, which sparked a 10-week war with the UK after invading the Falklands in 1982. Argentina continues to claim sovereignty over the islands and their natural resources. "It doesn't matter what we do in the Falklands islands, whether its developing our natural resources or strengthening our democracy, they complain about it," grumbles Mike Summers, a member of the Falklands' legislative assembly.

In Argentina, tension is brewing. The foreign ministry has already withdrawn from a joint agreement with the UK to coordinate oil exploration in the South Atlantic. It has also banned any oil company or contractor firm operating in Argentina from participating in projects in the Falklands.

Falklanders have experienced rapid economic change before. After the 1982 war, a 200-nautical mile zone was established around the islands to encourage commercial fishing. Within a few years, government revenue jumped from about 5m a year to 30m. Today, the figure is closer to 45m. "We're not unused to the idea of change," Summers notes in reference to the fishing boom. "Although with oil we're talking about a different level of magnitude."

Residents are already speculating on how the anticipated windfall should be spent. Under agreements signed with the oil prospectors, the Falklands will receive a 21% corporate tax and 9% royalties on all oil and gas produced.

Government officials are studying the experience of other small, oil-rich communities such as the Shetland islands, which benefited from the North Sea oil boom and set up a charitable fund with their oil bonanza to finance leisure centres and other community projects.

The Falklands could certainly use something similar. They have no theatre, only a handful of restaurants and precious little nightlife. A more comprehensive road network and a bigger port also appear high on wish-lists. A cinema would be a welcome addition too: at present the only widescreen is on the islands' military base, 35 miles down a gravel road.

"You can list the amount of amenities we haven't got until the cows come home," says Adam Cockwell, a 34-year-old ferry operator.

For now though, no one is promising anything. As Rendell says: "We've been careful not to plan for something we might never get."

http://www.falklandnews.com/public/story.cfm?get=5293&source=3

Falklands' Man Fined for Insider Trading

http://www.telegraph.co.uk/news/obituaries/4528103/Colin-Phipps.html

Obituaries

Colin Phipps
Colin Phipps, who died on January 10 aged 74, was a pioneer of Britain's independent oil production industry and for five years a Labour MP; jovial, bearded and unflappable, he bestrode the divide between politics and business, campaigning for Labour from his Rolls-Royce before helping to found the SDP.

Operational Update:
"Submission of Environmental Impact Assessment (EIA)

The Environmental Impact Assessment covering its southern licences in Tranches I and L and PL 034 is now substantially complete and will be ready shortly for submission to the Falkland Islands Government (FIG) for approval. This is slightly behind schedule due to a delay in receiving the results of the analysis of the benthic samples acquired last year. Desire already has a FIG approved EIA covering its northern licences in Tranches C and D.

A further update to this progress will be provided in the Company's Preliminary Results announcement in April 2009.

Update on Global Rig Market
The global economic downturn has had a marked effect on the drilling rig market, with utilisation figures decreasing for all types of rig. Most availability that has appeared over the last three months is on the basis of sub lease on existing contracts, where the holder of the term contract is looking to reduce exploration expenditure, thereby creating gaps in their programmes. Whilst some of these opportunities are attractive from a rig and timing standpoint, the rates for these units remain at the original contracted rate, as the incumbent operators are currently reticent to subsidise other drilling activities outside of their own.

However, Desire is seeing the first sign of rigs becoming available on the open market, either through contract default or end of primary contract terms, and more importantly the first indications that rates are reducing, albeit slowly. The forecast for rig activity throughout 2009 is for a reduction which is supported by the willingness of contractors to enter into discussions that were not possible three months ago. Several discussions are ongoing at the present time and it is envisaged more opportunities will present themselves in the near future. There are many factors to be taken into consideration before executing a rig contract, many of these exacerbated further by the location of the Falkland Islands, however, the most important of these remains the commercial terms. Given the information currently available to Desire it would be remiss not to evaluate all opportunities fully in order to ensure shareholder value is maximised. With US$38 million in cash and a likely four well programme,the Company is in a strong position to negotiate a very attractive contract.

Despite the falling oil price the fundamentals of Desire's projects remain unchanged and with our very attractive prospects the economics of any discoveries will be exciting."

If the oil price had not come down so steeply, goodness knows when we would have ever got a rig.As it is, hopefully we might manage to hire one sometime this year.

More delays expected in DES, I guess. Not an optimistic update.

Well if they don't contract a rig soon winter will be upon them and yet another year will have gone by without anything tangible happening.