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

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.

That is usual for DES...it has been waiting for a rig for a very long time. Hasta manana seems to be its lifestyle.

http://www.offshore247.com/news/art.aspx?Id=12911

Desire hopeful for Falklands rig deal

South Atlantic explorer Desire Petroleum has held out the hope of getting a good deal for a four-well drilling programme in the North Falklands and says it is getting close to submitting an environmental impact assessment for the region.

Desire says the EIA covering three licence areas, in Tranches I, L, and in PL034 in the North Falkland basin is now substantially complete and will be submitted soon to the Falklands Island Government for approval. A further update has been promised by Desire in April when it publishes its preliminary results.

Turning to the rig market, Desire says the global economic downturn has had a marked effect on the sector with drilling units now becoming available as sub-lets from existing rig contract holders, but the prices for those drilling units are still at the original dayrates and are therefore less attractive.

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 company declared.

Reinforcing its belief in its strategy for a North Falklands exploration programme, Desire points out it has 39 m in cash and with plans for a four well programme, believes it is in a good position to negotiate a very attractive contract.

Old news marky!

Coccydynia Halifax

http://www.desireplc.co.uk/obituary.php

Dr Colin Phipps
Obituary

I thought you were going to say Des obituary. It would have been appropriate in the cicumstances.

I've waited for so long before buying today.

Any particular reason? It looks to be sideways trading here for a while imo.

mitzy if we drill this year you will laugh at the price you bought at today.

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

Just a hunch Harry....what price target do you have marky..?

Mitzy

At the moment no oil in commercial quantities has been found so at the moment all desires prospects are valued at very little but when Desire do resume drilling and they are successful in discovering commercial quantities of oil then every other prospect will get a value even though it may not of been drilled.

When a oil rig gets to the Falklands and before the drill bit goes in am sure you will see a share price of between 2 to 5 and if they hit oil it will go ballistic.

marky with availability of rigs easing and rates coming down don't you think FOGL with the resources of BHP/BLT behind them will be the first to drill?

Halifax

Who knows, I know there is a operators meeting to be held over in the Falklands in the near future where all operators of all oil companies and partners will be across there.

Who ever drills first will have a knock on affect on all other oil companies share price but once that EIA report is passed Desire are drill ready on all targets they wish to drill.

FOGL still need to pass the hat around to secure more money to fund a drilling campaign and there is still a lot more work to be done in the background

My money is still on Desire to drill first with Rockhopper and I think it will be this year.

Marky why do you say FOGL would have to pass the hat round when BHP/BLT are going to foot thr drilling costs?

Halifax,

BHP said they would pay the costs of a 2 well program and to drill in FOGL acreage you will need anchored semi-submersible or drillship for exploration drilling and some how to send a ship over there for just 2 holes to be drilled I can not see as a drillship would cost $500,000 a day so I would expect FOGL to raise a lot of cash so they could drill a couple of holes of there own

To drill just 2 holes is a wasted opportunity hence I see the hat passed round and more dilution in the shares

I think I remember you saying DES would drill in 2008 marky...and 07,06...and so forth...one day they may drill and we can all make a few bob!