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://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article6829829.ece

http://en.mercopress.com/2009/09/11/fakland-islands-weekly-penguin-news-update
Friday, September 11th 2009 - 4:31 am UTC

Fakland Islands: Weekly Penguin News Update
DESIRE SHARE PRICE SOARS ON BACK OF OIL NEWS. Desire Petroleum shareholders who have stood by their investments for more than a decade were rewarded yesterday when the news that a rig had been sourced sent shares leaping almost 40 per cent to 89p.

For the next two years, these five faces will become as familiar to some Falklands teenagers as their own friends and family. Kathryn, Vicky, Jo, Pam and Ben are the new teachers on the block at FICS, and already they have big plans for their next two years. Find out more on page 2.

The drilling unit Ocean Guardian is scheduled to arrive in the Falklands on February 1, Stephen Phipps of Desire Petroleum said this week.

The unit will mobilise at the end of November and, following a 65-day tow, will begin its first round of oil exploration in Falklands waters since 1998.

The company has exchanged a letter of intent with Diamond Offshore Drilling (UK) for the unit, which will be used to drill in the North Basin: We are looking forward to coming down again and drilling, said Mr Phipps.

Director of Mineral Resources Phyl Rendell said congratulations should be extended to Desire, as the company had been seeking the right rig for several years: This is a significant step forward for oil exploration in the Falklands, she said.

With more than 200 share-holders in the Falklands, and an increase in share price of 39.5 per cent at the close of trading yesterday, Desires announcement is good news for many in the Falklands.

Councillor Mike Summers said: Its certainly a boost to everyone involved in that area, both in the public and private sectors. It also brings the prospect of a significant amount of additional work next year for the private sector.

Mr Phipps said although the majority of those working towards oil discovery would be based offshore on the rig, there would be support staff based onshore who would contribute to money coming into the Falklands, through restaurants and hotels.

Although he couldnt comment on the number of jobs the drilling may create for local inhabitants, he said it was unlikely more than 15 people would be based on land as support staff.

Logistical issues surrounding the project will now have to be resolved, with a long list of things to talk about when next in the Falklands, Mr Phipps said.

Things like accommodation, flights, office, space - everything starts now. Well be sorting it out in the next few months.

The security of the rig will have to be further addressed by Desire, said Cllr Summers, adding that after the recent consultant visit to discuss security the foreign and Commonwealth Office appears to be content with the progress government has made to date.

Mr Phipps said this was a significant step towards finding oil.

However if they were to discover oil in February, it would not be extracted for four or five years, due to appraisal wells, production platforms, infrastructure needed and other issues that would have to be resolved.

Councillor Summers said: If oil is produced, and thats still a long way off, the government receives royalty and income from corporation tax. But I must stress that is still a long way off. We dont yet know if there are commercial accumulations of oil.

If oil is found in very large quantities it would significantly change the economic perspective in the Falklands.

Rockhopper Exploration will potentially also utilise the rig, after details have been finalised.

Mr Phipps said: We believe we will find oil in the Falklands. The company is about drilling in the Falklands, so now we have a rig we can drill again.

as has been pointed out before .....


Mr Phipps said ...... "....... if they were to discover oil in February, it would not be extracted for four or five years."
Councillor Summers said: If oil is produced, and thats still a long way off ...... but I must stress that is still a long way off. We dont yet know if there are commercial accumulations of oil."


surely common sense says take profits now - and quickly

yes but u have to put money in 1st to get profits......something that u dont seem to do cynic so i dont know why u post on so many threads.......u apparently have a job but i dont know how u do it as u seem to be on this website so much

so are you saying i don't buy shares then?
or
are you saying that i rarely buy "blue sky" and frequently throw some cold water of reality into the pot - e.g. here?

i'm saying you "hardly" put money on more speculative shares.....i dont consider them blue sky as such.
i just dont know why u need to post on these threads unless its to post some caution as u do about taking profits......as i find u dont know much on certain companies on some of these threads from what i read...........hey, look at rpt it just keeps on going up, lol

Yet more movement from one of the Falkland Oil Crew Companies.

Rockhopper Exploration, the North Falkland Basin oil and gas explorer, is pleased to announce that it has agreed terms with a third party energy company for a farm-in to one of the Company's licences, through a contribution, at a promote, to the costs of drilling one well on the licence and to certain back costs. A Letter of Intent to farm in has been signed and discussions continue to progress the agreement this into a fully binding joint venture.

Now I wonder if this will end up like the bus stop syndrome. You seem to wait for ages for one to come along, then what happens, three or more come at once.

As for cynic. He is has been a serial de-ramper for years, who I squelched long ago, so can only assume by other posters that he is still at it. Why o why doesn't everyone squelch him, as even if he does presumably have something relevant to say it is lost in the massive volume of dross.

you need to know bugger all about a company to know when sp has got miles ahead of itself and even the official line is one of great caution - as here.

isn't it strange that the perjorative term deramper is bandied about as soon as someone like myself throws some reality into a thread.

i don't suppose you would therefore class yourself as a ramper then?
merely a cool and hard-headed gambler - sorry, investor perhaps?

==========

there is speculation and damn-foolery
pretty much any share is speculative to a greater or lesser extent, and certainly my portfolio is full of 2nd and 3rd liners (or lower!)

do i currently hold any stinkers?
no

have i made some good buys?
of late, not half!
AFR will do as a good example - invested (gambled!) 3600 in june/july - current (paper!) clear profit 4000
or
TLW - invested (gambled) 1650 in july - current (paper!) clear profit 3100

not much of a gambler or investor then......1650........doesnt even pay my council tax for the year!

nor mine ..... but where is 1650 mentioned as a profit? ..... for someone who loves quoting % gains, you don't seem to be very good at recognising them

wish i could double (could argue that should read triple) my investment (sorry gambling) values every 2/3 months .... and yes, i do bank profits regularly

you always mention profits.....is that 50 or 100 quid here and there.....zzzzz

no wonder u are glued to this all day every day.....u seriously need to get a life

which bit do you choose not to read?

3600 invested in june/july now reads 7600 = 4000 clear (paper) profit
1650 invested in july now reads 4750 = 3100 clear (paper) profit

as to what i do all day, it really is none of your biz ..... though i am glad to say that our own "proper" biz continues to run very profitably even in these tough times, albeit not as good as last year's record result

Cynic why do you post your dribble on threads you have no intrest in and most of all have no knowledge off in any way.

inter alia, because i choose to

u r a very sad lonely man cynic......i fel sorry for you being glued to screen all day. i'm just glad i dont have shares in company u work for as it certainly cant be getting its moneys worth out of your performance (or non-performance)

and you clearly enjoy being a bitter little queen, but then i guess you choose that role ...... it happens that my job entails the computer being on, so no hardship to watch my investments - sorry, gambles - performing and, as it happens for the last few months, very successfully indeed, despite the inevitable odd blip

http://www.fleetstreetinvest.co.uk/oil/oil-outlook/oilo-britain-falklands-84477.html

Is Britain About to Become the New Kuwait?
Date 11/09/2009
The Right Side | By Frank Hemsley

As reiterated in todays press, the oil majors such as Shell, BP, Exxon and the like are still desperate to boost their inventories, mainly due to the fact of low oil reserves on their books, but also due to intentionally over estimating for the last fews years in order to enhance their share prices.
As the Falkland field possiblefinds are being talked about in the same volume category as the BP and Chevron recent finds in Mexico how long will it be before the minnows such as Des/Fogl/Rock and the like are taken over.
IMHO the question won't be so much if as when. Will they wait till oil is pumping in sufficient quantities and risk loosing out to a competitor that jumps first or chance getting in on the ground, IE now.
Both strategy are a risk but which once will they take.

i won't post this 3 times, but this company seems to be the main driving force.

1) there is little doubt that there is oil in the falklands basin, probably in significant amounts

2) as yet, no one has proved the above nor the ease or otherwise with which it can be extracted - as and when found

3) no one (except perhaps here) believes that (eventual) find to flow will or can be less than at least 5 years

3) even if there are substantial quantities of oil to be found, it would be surpremely stupid to suppose that every well drilled will be a success ..... and dusters for minnows have a disproportionate effect on their sp

4) for sure the major oilies need to boost their reserves, and it is equally true that buying known reserves and/or production is much better and cheaper than doing their own exploration

5) but to buy on the premise that the majors are just waiting in the wings to pounce before anyone has even started drilling, is worse than foolish - it's actually a bad policy in any investment; it needs to stand on its own

6) despite the (strong) possibilities of ultimate drilling success, i still maintain my view that sp here and in associated companies has got way ahead of the game ...... now is not the time to buy, or if a holder, taking at least partial profits would be more than prudent to allow a war-chest to re-purchase if desired at a more opportune moment - that will assuredly arise

I bet EK will short some of them soon : he'll jump in at the top.