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.oilbarrel.com/nc/news/display_news/article/north-falkland-basin-exploration-campaign-gathers-momentum-as-rockhopper-exploration-bags-a-farm-in/771.html

September 15, 2009

North Falkland Basin Exploration Campaign Gathers Momentum As Rockhopper Exploration Bags A Farm-In Partner And Desire Petroleum Secures That All-Important Rig





More than ten years after the first, and last, wells were drilled in the North Falkland Basin and the campaign to return to the islands is, at last, gaining traction. Shares in Rockhopper Exploration hit a new 52-week high last week as the company announced it had agreed farm-out terms with an unnamed energy company, a deal that should give the AIM firm the financial clout to drill at least two wells on its acreage next year.
And fellow AIM explorer Desire Petroleum also released welcome news to the market last week as it confirmed it has signed a letter of intent to hire the Ocean Guardian rig for a minimum four-well programme starting in February 2010. As long time Falklands followers will know, the chartering of a suitable rig on reasonable terms has been one of the biggest stumbling blocks to getting these remote waters drilled up, with rig mobilisation fees alone running into the many millions of dollars (earlier this year some operators in the Falklands were talking about eye-watering mobilisation fees of between US$10 million and US$50 million).


Now Desire has succeeded in signing a letter of intent with Diamond Offshore Drilling for a minimum four well programme in the North Falkland Basin. The rig, a third generation semi-submersible capable of drilling in waters 1,500 feet deep, is currently in the North Sea and will mobilise for Falkland waters in November, to reach the islands in early February 2010. Desire has options to drill a further four wells, either on its own account or for partners.

This means there are up to eight well slots for the taking in 2010. Given it has taken over ten years to get a rig back in the area, the operators in the North Falkland Basin should take full advantage of this opportunity in order to drill up this high prospective but little drilled area. Desire is already investigating fundraising options to help it make the most of the rig. We intend to explore as many play types as possible, thus maximising our chances of success, said Desires chairman Stephen Phipps, a comment that not only refers to one of the shortcomings of the 1998 drilling campaign, which tested only one play type, but also highlights the diversity of his companys prospect inventory.

Rockhopper certainly hopes to be one of the operators to take advantage of the Ocean Guardians arrival and last weeks farm-out news should ensure it has the financial clout to take up at least one well slot. Investors will now be keen to learn the identity of the anonymous energy company and to find out more about the terms of the deal: all that is known at present is that the farm-in partner has agreed to contribute, at a promote, to the costs of drilling one well on the licence and to certain back costs. Investors will want to know just what kind of investment the incoming partner will make in return for how much equity in the acreage in order to put a value on the deal. These details will also help investors crunch through the numbers to work out what kind of funding gap the AIM firm faces to drill up its acreage: Rockhopper has said it hopes to drill at least two wells using the Ocean Guardian.

Like Desire, the company has a wide range of prospects to choose from, including the Johnson structure, which is the only classified contingent resource in the Falklands. Johnson was drilled by Shell in 1998, finding 165 metres of net gas pay. When Rockhopper took over the acreage it undertook 3D seismic and extensive re-interpretation and cross-analysis with Shells findings to come up with a data set that according to a Competent Persons Report (CPR) from RPS Energy that shows recoverable contingent gas resources in the Johnson structure of 1.6 trillion cubic feet of gas, with a high estimate stretching up to 7.9 tcf. In addition to Johnson, Rockhopper also has over 20 structural oil prospects on its acreage, eight of which have been independently verified. Of these, the Sea Lion and Ernest oil prospects remain the leading candidates for drilling with prospective reserves of 170 million barrels and 156 million barrels of recoverable oil on a P50 basis, respectively.

dick! get off this board

Good to see Barclays have bought a few more share in Desire today

http://www.investorschronicle.co.uk/Companies/ByEvent/Risk/Analysis/article/20090916/001866f0-a2b3-11de-acf8-0015171400aa/Falklands-oil-dream-starts-to-become-reality.jsp

Falklands oil dream starts to become reality

Created:16 September 2009Written by:Martin Li

Excitement over the Falkland Islands' oil and gas potential has re-ignited, as first Desire Petroleum announced it had found a rig that could start drilling early next year, and a day later Rockhopper Exploration announced that it had secured a farm-in partner that could make its planned drilling campaign a reality, too.


Desire has exchanged a letter of intent with Diamond Offshore Drilling for the rig Ocean Guardian to undertake a drilling campaign in the North Falkland Basin. Currently in the North Sea, the rig will mobilise in November and is expected to begin drilling in the Falklands next February. Desire will drill a minimum of four wells and plans to drill as many wells as possible beyond that to test the area's full potential. This may require Desire to raise additional funds. Rockhopper has signed a letter of intent with an as yet unnamed energy company for a farm-in to one of its licences.

These two developments could dovetail perfectly. Desire and Rockhopper are both exploring in the relatively shallow North basin and could share a rig. In May, Rockhopper announced the first Falklands hydrocarbon 'discovery', which resulted from the reinterpretation of a well drilled by Shell a decade earlier. The discovery's best estimate contingent resource is 1.6 trillion cubic feet of gas, which though huge is not currently considered commercial given its remoteness. But a further gas discovery in the area or an incoming partner looking for gas could make this a more attractive development.

The waters of the South basin are deeper than those in the North basin and beyond the capability of Desire's rig. Tim Bushell, chief executive of Falkland Oil and Gas (FOGL), one of the explorers in the South basin, commented that it was looking increasingly likely that the north and south would have separate drilling campaigns.

FOGL and its partner BHP Billiton will shortly be submitting drill permit applications and remain on target to drill probably late next year, subject to securing their own rig. As Mr Bushell observes: "It could be an exciting year for the Falklands."


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IC VIEW:
These developments are extremely positive for all the Falklands explorers. Their shares are popular with speculative investors and have taken off again on this newsflow. Desire (86p) and Rockhopper (72p) are fairly priced pending confirmation of rig and partner details.

"speculative investors" and "fairly priced" are to me the two key phrases, and both strongly suggest caution at this juncture

attention seeking again Cynic....! get a life and move on life is far to short.

Cynic, get a life you sad sod, if you haven't got the shrs you aint gonna be able to deramp them in order to get on board, bite the bullet and buy or forever regret it

cynic.....you seem to have got quite a few shares wrong this summer from reading your comments......once in a while u need to take a punt on speculative share.......hey its called life!

anyway i'll let u get on with staring at company screen all day.....i pity the poor sod that got to make up all the work that aint done by you by being on this site all day. i've got friends that work in offices and they only get lunchtime to look at internet........people constantly on internet at work should be sacked

Last plea.
As there are almost 50% of the last posts replying to 'cynic' it is starting to make reading this thread a waste of time, although I have him squelched.
So please don't reply to him. All those that do only fuel his strange need to post his drivel.
I would hate to stop reading this thread, as there is often a bundle of good info posted, especially for someone such as myself who is not invested in Des directly so do not know the company in such depth as you do, but use the thread due to any info from the Falkland Fields reflecting on my investment in FKL.
Please don't take this post as a personal dig, as I value your input (not cynic obviously).

http://www.badidea.co.uk/2009/09/oil-found-everywhere-but-still-not-enough-of-it/

http://www.ft.com/cms/s/2/bea440d8-a47c-11de-92d4-00144feabdc0.html

am happy to admit that it looks as though i was wrong (yet again!) ..... at best, i fully expected DES to fall back to about 70p quite rapidly, and patently it shows a strong disinclination to do so ...... of DES, FOGL and RKH, i think i would plump for DES of this falklands trio as it seems to lead the pack

last time i get advice from you!!!! lol

i never told you to SHORT the damn thing - lol!

did you get suitablely pissed on your weekend, red light area after????

as "grandfather" to the group, i ensured they all stayed on the straight and narrow!
however, must admit that i never expected b'ham to be so chockfull of nubile nymphets, few wearing more than wide belts ..... shame that so few had the legs to carry it off well!

telling porky's again........

oop's that wouldn't apply to you....sorry!!

ratcheting up nicely

Morning Rob,

Been good volume over the last few days and I think we will see the share price creep up and down for a while but one thing for sure is when the rig leaves the shipyard after re fit and head for the Falklands it will do the same as it did back in 1998 and the share price will get higher and higher week by week.


From Westmount Energy results yesterday


1. Desire Petroleum Plc (Desire)




On 10 September 2009 Desire announced that they had exchanged letters of intent with Diamond Offshore Drilling (UK) Ltd for a rig to undertake a minimum four well drilling campaign in the North Falkland Basin. The rig is due to arrive in Falkland waters in February 2010. In addition Desire has options to drill a further four wells for itself or its partners. Exercising this option may require further fund raising in the future.




Desire's share price has responded to this news and is currently trading at 90.75p per share as compared to 31 December 2008 middle market price of 26.75p per share. The company currently holds 4,100,000 shares in Desire and the market liquidity in the shares has improved considerably. In August this year the Falkland Island Council granted the necessary environmental consents for the proposed drilling programme