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

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.

amazing what a "letter of intent" can do!

puts a lot of money in the bank doesn't it!

Cynic am so glad your not holding RKH or DES as you still cant see the picture!!

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/6168664/Desire-Petroleum-tows-rig-to-oil-rich-Falklands.html

Desire Petroleum tows rig to oil-rich Falklands

A British oil explorer is raising 20m-30m from shareholders as it prepares to start drilling in the Falkland Islands, where it believes up to 3bn barrels of oil and gas may be recoverable.

Desire Petroleum, which has been conducting seismic tests north of the islands for many years, has managed to secure a rig that will be towed to the drill site from the North Sea in November.

The company's estimates for extractable oil and gas reserves suggest up to eight wells at the field could yield as many or more barrels than both BG and BP's major finds in recent weeks.

On Wednesday, BG said it was
drilling in an area of 2bn barrels of recoverable oil in Brazil, while BP revealed last week that it could extract 500m barrels from the Tiber prospect in the Gulf of Mexico.

Desire's testing has only been preliminary, so it can only guess at recoverable volumes, but senior sources in the company said it was confident that the gamble would pay off.

"We believe there are 2bn to 3bn barrels down there, making it potentially as big as BP's find," a spokesman for the company said. "This is only conjecture because we have not started drilling, but the area has become more economic as the oil price has gone up."

The majors retreated from the Falkland Islands in the late 1990s, when the sharply dropping oil price meant many companies allowed their licences to lapse. Shell and Lasmo was drilling near the Falklands in 1998, but decided that the area was not profitable enough at that time.

However, Desire has been looking for a suitable rig for many years in the hope that the shallow water would work in its favour. It believes that drilling at the site will take just 180 days after the rig becomes operational in early February.

The company has a 147.6m market capitalisation and is drilling the wells with its partners Rockhopper and Arcadia. *2913 - Population at last Census (2001)

*Total land area - 4700 square miles (about the size of Wales)

*Capital - Stanley - which prides itself on being the safest capital in the world. There are no recorded cases of mugging or pickpocketing

*GDP - 45m, ranking it 223rd in the world

*60bn - the estimate of the number of barrels of oil in the North Falklands basin according to seismic tests