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

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

Falkland Islands Government
Department of Mineral Resources
Newsletter: July 2009

http://en.mercopress.com/2009/07/29/falklands-eias-to-exco-as-drilling-preparation-continues

Wednesday, July 29th 2009 - 9:18 am UTC

Falklands: EIAs to ExCo as drilling preparation continues

WORK towards a hydrocarbon drilling programme in the Falkland Islands continues to progress with the news that Environmental Impact Assessments (EIAs) are soon to be submitted by Desire Petroleum and Rockhopper Exploration to Executive Council for approval.
The preparation of an EIA is one of a number of procedures companies are required to go through before drilling wells, Pippa Christie, the administrative manager at the Department of Mineral Resources said. To produce a comprehensive EIA constitutes a major piece of work, but Desire and Rockhopper are on track with this, which is greatly to their credit.

Once the details of a contracted drilling rig are known, both companies will be required to submit an addendum to their EIAs to demonstrate that they have taken account of any particular environmental issues that might arise as a result of the type of rig to be utilised.

Despite the credit crunch, the world rig market remains tight with many rigs tied up on long contracts and the day rates for rigs holding their high, pre-global economic downturn prices.

However, Mrs Christie said it was hoped that gaps in rig work programmes would arise, and Falklands operating companies would be able to take advantage of these.

She added: Once a rig has been identified, then, in addition to submitting an addendum to the EIA, a company must embark on a process of receiving approval to drill, which, briefly, will require them to submit a satisfactory well design proposal, and to demonstrate that the health and safety standards of the rig and their operating health and safety protocols are up to the levels required by the Falkland Islands Government. Source: Penguin News

http://en.mercopress.com/2009/08/03/sir-nicholas-re-elected-chairman-of-ukfalklands-all-party-parliamentary-gro

Sir Nicholas re-elected chairman of UK/Falklands All Party Parliamentary Group

The Falkland Islands strategic role as a gateway to valuable mineral reserves and associated wealth increases each year. An anticipated hydrocarbon exploration program will begin later this year with a high chance of success in the Northern Basin.

Business Financial Newswire
"Desire Petroleum's environmental impact statement for licences PL 006 and PL 007 in the North Falkland Basin has been approved by the Falkland Islands Governor.

This approval is subject to the further approval by the Mineral Resources Committee of an operational dddendum, to be submitted once the rig details are known. "

http://en.mercopress.com/2009/08/25/foreign-office-impressed-with-falklands-oil-security-measures

Director of Minerals and Agriculture Mrs Phyl Rendel said Mr Fred Rokkita appeared, impressed with the facilities and emergency plans that are in place for such a small country.

Falkland Islands Government Legislative Assembly (Legassy) Member Mike Summers confirmed that Mr Rokkita met with Members in order to discuss the physical security of rigs and vessels as well as operational security in terms of logistics.

He said they talked through how the last drilling round went and what had been learnt.

The Hon Mike Summers said Legassy Members were able to assure Mr Rokkita that all of the issues he had been tasked with examining were being looked at already by the Falkland Islands Government: All of the people he met were able to satisfy him that everything was well in hand.

Latest news relating to North Falklands basin is that the Environmental Impact Assessment for Desire Petroleum Licences PL 006 and PL 007 presented to the Falkland Islands Government Executive

Council last week was accepted yesterday.

Desire announced: This approval is subject to the further approval by the Mineral Resources Committee of an Operational Addendum, to be submitted once the rig details are known.

Desire Petroleum operates 6 licences in the North Falklands Basin. Rockhopper Exploration plc has farmed into two of those tranches and Arcadia Petroleum Limited into three.

By Lisa Johnston - SeAledPR - Stanley

Desire Petroleum plc
("Desire" or "the Company")

EIA Update

Desire Petroleum plc (AIM: DES) the exploration company focusing on the North Falkland Basin, is pleased to announce that the Governor of the Falkland Islands, acting on the advice of the Executive Council, has approved the Environmental Impact Statement for Licences PL 006 and PL 007. This approval is subject to the further approval by the Mineral Resources Committee of an Operational Addendum, to be submitted once the rig details are known.

IN WHICH MILLENIUM ARE WE GOING TO SECURE A RIG?????????????????

It's a mirage!!

Is everyone still sleeping? WE HAVE GOT A RIG!!!!!!!!!!!!!!!!!!!

Desire agrees drilling rig deal for Falkland campaign
Business Financial Newswire
Desire Petroleum has exchanged a letter of intent with Diamond Offshore Drilling for the drilling unit the Ocean Guardian to undertake a four well minimum drilling campaign in the North Falkland Basin.

The Ocean Guardian is currently in the North Sea and following a programme of shipyard work will mobilise in November.

Projected arrival in Falkland waters is early February 2010.

Desire has options to drill a further four wells for itself and or its partners.

Well done, Marky. It's been worth the wait but a hell of a long and winding road.

Looks like we will be playing the south atlantic stocks next year....still probably 6 months before drilling commences....

Cheers Oily,its the news i have waited for for a long time and have held for over 11 years waiting for us to resume drilling in the NFB.

That is crazy holding for as long as that when the funds could have been invested elsewhere...you can always buy them back again..., anyway looks like that next summer should be interesting...

required field i was sure back then there was commercial oil would be found in the NFB and time will tell but over them years i have topped up from my orignal stake to hold a significant amount of shares.Last time they went drilling the share price rose to nearly 5 a share and it will do it again as time gets closer and greed takes over.

More holes will be drilled and maybe other partners will come in to the picture now,RKH i expect news from them it all systems go.

Nothing is certain, only Rockhopper has a confirmed discovery....so it could take several wells before anything of any value is booked...but at long last something is going to be drilled...I myself shall be looking for an entry point...perhaps not today because they always mark shares up too much on news...

Entry when it gets back to 60p which it will imo.
Are these the guys hooked up with BLT? Worth watching that sp also.

Great News!!!! For all of us playing the waiting game.

This is the news that now makes this a credible investment, not sure we will look back again - onwards and upwards, like Marky said these shrs were 5 before a find last time and we will see that price again before Feb, Have topped up today as I have been holding DES for soooo long, time for the payoff

Oriels brokers note

Desire Petroleum (DES, BUY, 64p) Drilling rig letter of intent

Desire announced this morning that it has exchanged a letter of intent with Diamond drilling for the use of the Ocean Guardian to undertake a minimum four well campaign in the North Falkland Basin. Desire has options to drill a further four wells for its self or its partners.
The rig is currently in the North Sea and is expected to mobilise in November with the drilling programme expected to commence in Feb 2010.
It is currently unclear which prospects Desire will target, but a 4 well programme could target over 1bn boe of reserves (gross) which we estimate would be worth 450p/sh risked or over 2800p/sh unrisked.
Desire plans to drill as many wells as possible to fully test the area and will be looking to raise additional funds prior to mobilisation. On our numbers Desire is currently funded for the majority of a four well programme (depending on which prospects are targeted).
This should be good news for all the Falklands companies as the Ocean Guardian is rated to 1500m water depth and should be capable of drilling on some of the acreage in the South Falklands basins.