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

thank you mark ..... glad i'm not so arrogant that i cannot change my mind as bought a fairly modest number at end October which is now prettily in the money

I am holding DES, AEX, XEL and AST amongst the smaller oilers on AIM.

DES, AEX and XEL all well in the money and should be going upwards.

AST remains just above breakeven, but also very exciting for 2010.

haven't heard much about the proposed open offer to shareholders at 70p lately, anyone have any news?

Ho Ho Ho Rob,

Not sure why there has been a delay in O O but it is still at 70p and will be fully subscribed to i expect especially with the price at over 90p at moment,

I have to pinch myself when i see the share price rise like it does as i know what am sitting on!!!!!!!! early days

Glad youre on board Cynic

yeah, me too Mark it's been a long wait but should be WELL worth it, 5 by Feb imo

usually a signal for all to jump ship ..... guess water's too cold at this time of year

http://en.mercopress.com/2009/12/07/desire-petroleum-presents-eia-addendum-to-falklands-government

Monday, December 7th 2009 - 5:41 pm

Desire Petroleum presents EIA Addendum to Falklands government
Oil and gas exploration company Desire Petroleum, licensed to operate offshore the Falkland Islands announced the submission to the Falkland Islands government of the Environmental Impact Assessment (EIA) Addendum required for the planned drilling program.



Desire Petroleum, which is focused on the North Falkland basin, has plans to drill several wells this coming austral summer and an exploration rig, Ocean Guardian is currently en route from the North Sea to the South Atlantic where it is expected to arrive in February.

The update EIA includes details of the Ocean Guardian drilling rig.

The EIA approval is one of the last formal requirements before effectively begin drilling this summer. Desire Petroleum announced that a copy of the EIA Addendum will be posted on its website in due course.

Diamond Offshore Drilling confirmed that the length of the rigs trip from Invergordon on the Cromarty Firth to the Falklands (62 days) could change if there was bad weather.

The tug Maersk Traveller is involved in the moving the 24-year-old Glasgow-built semi-submersible rig.

Under the terms of the contract between Desire Petroleum and Diamond Offshore Drilling, four wells must be completed during a minimum eighty day campaign. Desire Petroleum however has secured options to drill a further six wells for itself or its partners.

Mobilisation and demobilization fees for the rig are estimated to be 16 million USD

Can the EIA Addendum to Falklands government be rejected???

yes!!!! but it wont be it was one of the last things they had to do when they contracted the rig.

Desire in open offer to raise 20.3m

Business Financial Newswire

Desire Petroleum is raising 20.3m through an open offer of up to 28,971,544 new shares at 70p apiece - a discount of 21.1% to the closing price last night (8 December).

The offer is being made on the basis of one open offer share for every 10 existing shares held.

shan't retire on that by a very long way, but it'll help bring down my average price

Broker Note 8th Dec 2009:

http://www.oilbarrel.com/fileadmin/content/pdfs/Brokers_Notes_August_09/Brokers_Notes_Dec09/North%20Falkland%20Basin%2008-12-09.pdf

..........Should drilling be successful, the upside potential for both companies is exceptional. In the case of Desire, a fully unrisked EMV at a 25% discount would exceed 1,150p and Rockhopper’s would be greater than 2,000p based on the same criteria. This best case scenario is unlikely but demonstrates how geared the companies are to additional discoveries...........

http://en.mercopress.com/2009/12/10/desire-petroleum-plans-extra-well-in-falklands-and-makes-20-million-share-i

Desire Petroleum plans extra well in Falklands and makes 20 million share-issue
Desire Petroleum, which is focused on the North Falkland Basin announced Wednesday it is proposing a share issue to raise 20 million to make use of the full potential of its hydrocarbons exploratory drilling season scheduled to begin next February when the Ocean Guardian rig arrives.

Very good strategy

Based on what has happened with other open offers, I fully expect this to drop to around 70p ish over the coming few weeks. I should have gone short yesterday at 89p but didn't.

if your so sure why dont you take a short out then instead of just thinking what it might drop to.

I think it will be sitting at 1 to 1.25 at christmas.

I'm certainly not sure about anything in this market!

After saying that I could almost guarantee it won't be anywhere near 1.25 and probably not 1. If you haven't noticed, the market is generally incapable of moving atm apart from technical movements in the big miners for the reason that there ain't any buyers around as they have all packed-up for Xmas.

On a personal note i think as the drilling campaign is due to commence or has started that there will be other parties joining in at a later date as the problem was getting the rig and thats not a problem now!!


http://en.mercopress.com/2009/12/11/argentina-was-sure-chile-would-not-be-involved-in-falklands-oil-exploration

Friday, December 11th 2009 - 5:55 am UTC

Argentina was sure Chile would not be involved in Falklands oil exploration
The Argentine government minimized the potential impact to bilateral relations with Chile following news that the countrys oil company Enap had been approached by a British corporation to team up for hydrocarbons exploration offshore the Malvinas Islands.

http://www.upi.com/Science_News/Resource-Wars/2009/12/10/Falklands-woo-Chilean-oil-companies-to-speed-up-exploration/UPI-34211260484632/

Falklands woo Chilean oil companies to speed up exploration

A bit more info to the story above as it looks like FOGL going round trying to get new partners to join then.

Interesting story, Chile has always been on the side of Argentina that the Falklands belong to Argentina and signed many a petition and spoke out against Britain owning the island for many years.

If they do become a partner is will cause a huge rift with Argentina and other South American countrys, its so funny look how its been worded by Chile

Yes, theres a sovereignty problem which is bilateral between Argentina and the UK, and something completely different is commercial integration, exchanging ideas particularly in the oil industry which I repeat is essential for Chile, said Forni who is running for Senator next Sunday.


What it all boils down to is oil is power and money!!!!and like this share greed will take over and this share price will go ballistic when drilling happens on the hope huge amounts of oil is found.



http://en.mercopress.com/2009/12/12/falklands-oil-deal-with-chile-much-depends-on-sundays-election

Saturday, December 12th 2009 - 6:44 am UTC

Falklands oil deal with Chile much depends on Sundays election

Chiles opposition presidential candidate Sebasti Pira is open to discuss the proposal from Falkland Oil and Gas Ltd, FOGL, for Chiles national oil corporation to explore for oil in Falkland Islands waters, if he wins the elections next Sunday or in the January run off, according to Lower House member Marcelo Forni.

Chiles government owned oil and gas corporation Enap has a renowned expertise and a vast experience in hydrocarbons exploration and exploitation in the extreme south of the country and in the last few months has been approached by FOGL.

Forni who is also a member of the Mines and Energy Committee said that Pira will always look for what is best for the country, and if a strategic alliance between a British company and one belonging to the Chilean state is useful, well I see no inconvenience as long as it does not influence our relations with other countries.

The issue is highly sensitive and has triggered immediate reactions from Argentinas Foreign Affairs and Federal Planning ministries given the British Argentine dispute over the South Atlantic islands sovereignty.

After all with or without the signing of such an agreement, which would help diversify Chiles energy equation, we are not going to give the Malvinas back to Argentina nor are we going to ensure Britains sovereignty over the Islands, said Forni.

Yes the Argentines might feel annoyed, the same way we felt when they did not honour the natural gas protocol back in 2004 and cut supplies to Chile. We dont have to feel weak. If the British are inviting us for such a deal, its the obligation of Enap to consider and assess it. I think its a mistake to mix issues such as our Foreign Affairs ministry has done. We have nothing to do with the problems between Argentina and Britain, he emphasized.

Nevertheless from the Argentine side things are not that simple since in the event of an association between Enap and FOGL, there would be trade problems for both countries.

Federal Planning Minister Julio De Vido recalled the existence of resolution 407/2007 which impedes companies operating in the Falklands, to do so in Argentine territory.

Enap and its international branch Sipetrol is involved with Repsol-YPF in several wells in the Magallanes area (CAM-2A-Sur, CAM-3 and CAM-1) and in the San Jorge Gulf basin.

Forni said the Chilean government reaction was too categorical, too immediate and what Im saying is that in energy issues any diversification of our production equation in conjunction with other countries is essential.

Yes, theres a sovereignty problem which is bilateral between Argentina and the UK, and something completely different is commercial integration, exchanging ideas particularly in the oil industry which I repeat is essential for Chile, said Forni who is running for Senator next Sunday.

Let us not forget that when we most needed natural gas, we didnt get it and the Kirchner government told us straight in the face that the 1995 contract would not be honoured, I thing we are talking of double standards insisted Forni.

The Chilean government was quick to emphasize that the countrys policy has always been of unrestricted support to Argentinas sovereignty claims over the Malvinas, South Georgia, South Sandwich Islands and adjoining maritime spaces.

Chilean oil industry sources quoted in the Santiago press said that President Michelle Bachelet is leaving in 90 days and certainly does not want to start a dispute with Argentina, therefore her quick reaction. Anyhow by next March if Mr. Pira is effectively elected Chiles next president, it could be a different ball game.