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

where is the Argie navy?!

Is Markymar sailing with the rig? No sign of him recently.

Havent bailed out yet been suning myself in the Canarys and so glad to see the share price rise 1.50 ish soon then near drilling ......mad house


A Penguin news article, courtesy of Granny7, on advfn - very interesting read.

http://www.penguin-news.com/pn-login_sub.php?typ=paid

Drilling preparations step up a gear onshore AS the semi-submersible drilling rig Ocean Guardian, contracted by Desire Petroleum from Diamond Drilling, continues to make its way south, a number of oil operators are scheduled to visit the Falklands to meet with government officials this month.

Desire Petroleums Chairman Stephen Phipps, Chief Executive Officer Dr Ian Duncan and Finance Director Eddie Wisniewski are due to arrive next week for a round of meetings with government officials and others.

They will be accompanied by Ben Romney from Buchanan (Desires PR consultancy) and Robert Watts, a journalist from the oil industry magazine Upstream.

Three representatives from Rockhopper Exploration are also scheduled to arrive next weekend.

The Ocean Guardian, under tow by the Maersk Traveller, is still on schedule to arrive in early February, Desires Falklands representative Lewis Clifton confirmed this week.

A second Maersk anchor handling tug supply vessel is due to arrive late this month, and the third rig support ship, a platform supply vessel, will complete the offshore drilling support package, he said.

The pace dockside is about to pick up with the first of two cargo ships, Thor Leader, carrying oil equipment from UK, arriving next week.

The second cargo ship, Honest Rays, arrives on January 15.

Mr Clifton said discharge operations would be undertaken 24 hours a day until the 14,000 tons of equipment onboard were sorted and stored, pending the arrival of the Ocean Guardian.

Onshore specialised support personnel will begin arriving in Stanley during the next few days.

Mr Clifton said up to 12 personnel would be based in Stanley for the duration of the drilling programme.

As with oil rig workers, these personnel will rotate 28 days on and 28 days off.

The shore support personnel will be largely based out of the integrated pipe yard and laydown facility being constructed at Coastel Road by Byron McKay Port Services, of which Mr Clifton is a director.

The facility will include modularised office and warehouse accommodation, and the silo plants (muds and cement bulk storage), although other private sector facilities will also be utilised.

Mr Clifton said Byron McKay Port Services had secured an onshore services support contract, and were working with AGR Petroleum Services - the oil operators contractor - to provide the ship-shore-ship logistics support interface.

A number of local appointments have been made to support the contract terms.

These include an aviation coordinator and a number of operatives, slings men, labourers and stevedores.

A two week training programme for operatives was undertaken during early December under training guidance brought in from Aberdeen, said Mr Clifton, adding that security personnel would also be appointed for the duration of the drilling programme.

Helicopter support operations are to be provided by British International with an airframe due to arrive on the Ministry of Defence freighter next week.

Mr Clifton said work was also progressing towards bringing back on line the helicopter refuelling facility at Cape Dolphin on East Falkland, which was set up during the last drilling round in 1998.

However, unlike in 1998 when the Borgny Dolphin oil rig was visible off Cape Pembroke, the Ocean Guardian is unlikely to come into sight on arrival, said Mr Clifton.

I bet you were rig spotting from Las Palmas, Marky !

Good to see u back, Marky. But too bad u r back to the Big Freeze.

"open offer" goes live on 13th january i believe, so not impossible that there will some interesting sp gyrations on/about then

hope you caught the nice 75 degee heat we had over xmas markymar, seems to have cooled off into the 60's lately.

Are u on the ride, cynic?

yes i am since 27th october at 82.25 ..... didn't buy full "norm", but am happy enough

Good, cynic... hope we will enjoy the ride.
Balerboy, are u in too?

RIO has been a fun ride too!

hlyeo98 your rubbing salt in now.........lol, consider over a too much at the mo unless i'm persuaded different. stupid boy... me i mean. and you cynic... missed rio too.......going back to tenerife to sulk.

Well, at least u got the warmth and sunshine whilst we freeze here. No intention to rub any salt in. Sorry.

only joshing, hlyeo98.

Desire Petroleum (DES, BUY, 111p), Rockhopper Exploration (RKH, HOLD, 78p) - Investor/Analyst presentation

Desire and Rockhopper gave a joint investor/analyst presentation yesterday. Both presentations reiterated the details presented in the previously published Competent Persons Reports (CPRs) although the companies confirmed they will cooperate during the drilling programme by sharing data to maximise the chance of success in the current programme.

Drilling plans remain fluid, with the results of the first wells expected to heavily influence the forward drilling programme (e.g. if Liz is successful Desire's next well is likely to target a follow on prospect in the same play). The first two wells are expected to be on Liz and Sea Lion. This will be followed by a well on Toroa on Falkland Oil and Gas's* (FOGL) acreage with a rig agreement currently being finalised between Desire and BHP

Following the recent placings and Desire's open offer both companies are well financed going into the drilling programme and will have flexibility to drill additional wells potentially using some of the contingent well slots on the Ocean Guardian, although this may change if the initial wells are successful and extensive testing programmes are completed.

Desire confirmed that the rig is making good progress down to the Falklands and is expected to begin drilling in February which we expect to act as a positive catalyst for both stocks.

In terms of upside valuation for the initial wells, a commercial success at Liz based on pre-drill resource estimates of 280mmb would be worth unrisked 635p/sh to Desire and 86p/sh to Rockhopper. Sea Lion based on a pre-drill of 170mmb would be worth 608p/sh to Rockhopper while Toroa based on pre-drill estimates of 1400mmb would be worth c3400p/sh to FOGL*

Richard Rose
Oriel Securities

+44 20 7710 7637 +44 20 7710 7637 Direct
Connected research

http://www.oilvoice.com/n/Desire_Petroleum_Announces_Result_of_Open_Offer/35d8aa760.aspx

Desire Petroleum Announces Result of Open Offer
12 January 2010

City commentator Evolution Securities has speculated that online bulletin boards will be rife with rumour and gossip in the period between spudding and completion of new wells off the Falklands by Desire Petroleum and Rockhopper Exploration.

After the two companies made a presentation to analysts in London yesterday, Evolution reported that Desire and Rockhopper have indicated they will only issue regulatory news releases on the spudding and completion of those forthcoming wells in the North Falklands.

However, with wells expected to take less than 30 days, we expect the bulletin boards to be rife with rumour and gossip in the intervening period, Evolution commentated today.

The Ocean Guardian rig was due to commence the first well for the two companies next month and is now travelling down to the South Atlantic.

Desire and Rockhopper are on course to spud the first of up to ten wells from next month Evolution observed, with the plan to test a number of different play types in order to extend their understanding of the geology of the North Falklands Basin, and the two companies intend to share exploration drilling results.

The principal risk is the presence of decent reservoirs, sufficient to hold and flow commercial levels of oil, given that they will be within a muddy basin, the commentator stated.

Analysts Presentation (11/01/10)

http://www.desireplc.co.uk/images/uploaded/6214697_4368899.pdf

"Muddy Basin"!!!!!!!!!!!!!!! Nobody said anything about that before! Oh Cr*p! Well, that's it then. Might as well pack up & go home! ;o)

that'll teach you to wash your rugby kit at home!