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

Alex, there will be pull backs in the coming weeks but the price will carry on rise sing as we get nearer to drilling.

There will be profit taking along the way it depends on what your happy at selling out at,a profit is not a profit till you bank it, myself i think there is oil there and will hold and let the drill bit do the talking.

seymour pierce buy note today....hence price rise today

Desire Petroleum 3,4,5 (BUY) - Drilling update

DES.L (118.75p) Market cap: 378.4m

Desire anticipates spudding the maiden well in its Falklands drilling campaign around the middle of February. There are ten undrilled high graded prospects on Desire's acreage in the North Falklands Basin and these have, at the P50 level, a total net unrisked prospective resource potential (taking no account of prospect dependencies) of just over 2.0 billion barrels of oil. Of these ten prospects, whilst the drilling schedule will be flexible based on well results, Liz is likely to be the first to be probed. Net to Desire, Liz has an unrisked P50 resource potential of 260 million barrels.

To put this in context, based on the NPV calculations in the economic assessment work done by the independent expert, if the resource was to be converted to reserves (success case) we estimate that it would be worth the equivalent of 675 pence per share. Liz partly overlies the Beth prospect and can be accessed by the Liz well.
Depending on the Liz results, Desire will decide whether or not to drill an appraisal on Liz or to deepen the well to test Beth. To put Beth in context, the prospect has a net unrisked resource potential of 166 million barrels. Using the same factors as in our estimate for Liz, on a success basis, we estimate that Beth is worth the equivalent of 430 pence per share.

Alan Sinclair | Oil & Gas Research | 020 7107 8094 | alansinclair@seymourpierce.com
You can see on the map above where Liz and Beth overlap and for them both to come up trumps is over 11 per share.....Ifs and buts until the drill bit goes down but this is what will drive the share price up until they drill,

The 'Big Four' Falklands Oil Shares
Date 15/01/2010
Penny Sleuth - The Penny Shares Expert | By Tom Bulford


http://www.fleetstreetinvest.co.uk/oil/supply-demand-oil/falklands-oil-update-98463.html

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 on-shore 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.
Source: Penguin News

Just a progress update on OG. The tow is now back underway from Porto De Suape or will be in the next few hours. Crew change is now done and drill water has been loaded. She headed for Vitoria, as prevously mentioned. This is for the Maersk Traveller to get bunkers. Bunkers were to be loaded in Salvador but this was changed for operational reasons. The tow to Vitoria should take around 6 days. Total tow time from Porto De Suape should be around 25days. This includes the stop in Vitoria.

Thanks, Markymar for the update, how do you find out about OG's location?

I have a crystal ball,that also told me to Buy RKH share at 12p!!!!and Desire well i have a boat load........happy days

Well done, marky. I entered BOR at 45p. Are in in BOR too?

arguably a bit early, i top-sliced on friday, for there is certainly a danger that sp is getting too far ahead of the game

at last he agree's with me!!

BB - don't agree with your post 3379, but to reiterate yet again, a profit's only a profit when it's in the bank, and it's very very easy to get carried away by greed, and thus end with (less than) nothing

Well done cynic i still think it will rise to 1.50+ this week.......time will see,i expect news with talk going on in Falklands.

Hi Hlyeo,
Am not in to Bor at all and i cant get my head round them and until i know what prospects they have and what they might hold i will not buy a single share. Its a bit like buying a lucky bag you dont know what youre getting, before i give any one my money i want to know what am getting.

So far with Borders you dont know what prospects they hold or what size they are

They have no EIA they cant drill until it is passed

They have no partner to help with cost of drilling....Time is passing them by suggesting no one wants to partner them.

They have no rig and no time table

I will even go to say they may not even have a licence any more as it has run out unless someone can show me some evidence

The Company is also pleased to announce that the Falkland Islands Government has granted a two-year extension to its licences in the South Falkland Basin, southeast of the Falkland Islands. The extension applies to the Initial Term of licences PL018 to PL022 with the provision that Borders & Southern acquires in excess of 750 sq km of 3D seismic data. This will mean the first exploration period will now be five years and will end on 1 November 2009. There will be no relinquishment of acreage before that date.

DES market cap 414 mill hold all the cards to who drills and best prospects

BOR..................324 mill over rated...110 MILL IN BANK AND THATS ALL THEY HAVE

FOGL...............259 mill may drill one hole with rig or wait till drill ship next year

RKH.................150 mill...still a bargain and will drill sea lion prospect
Prospect after Liz and Pam

Desire Petroleum (LSE: DES): Desire holds licences in the shallow waters of the North Falklands Basin. It has contracted the Ocean Guardian drilling rig. It expects to drill four wells, starting in February. Evaluation of its top ten prospects has indicated prospective recoverable resources of over three billion barrels (boe).

Rockhopper (LSE: RKH): Rockhopper is the largest licence holder in the North Falkland Basin. It has indicated a possible 4.3bn boe in its licence area. The Ocean Guardian will drill two wells on its wholly-owned blocks.

Borders & Southern (LSE: BOR): Borders & Southern holds a 100% interest in five production licences in the South Falkland Basin. It has been cagey about how much oil could be here, referring only to "multiple targets". The biggest of these could contain over 1bn boe. It has also alluded to the contiguous Malvinas and Magallanes Basins to the west where discoveries of six billion boe have been reported.

In November Borders & Southern raised 113m, enough to finance the drilling of three wells. It may yet bring in a partner and it has also hinted at "sharing with other operators in the region". This is likely to mean Falkland Oil & Gas. This is partly because Borders & Southern's licences are in the deep waters to the south, but also because Desire and Rockhopper have already secured their rig.

Falklands Oil & Gas (LSE: FOGL): Having brought in BHP Billiton as a partner, FOGL has an interest of only 49% in its licence areas. But these areas cover an expanse the size of 223 North Sea blocks more extensive than all the other licences put together. The joint venture plans to use the Ocean Guardian to drill one well at one of the shallower points of its acreage. But the licence areas are predominantly deep water. To drill here it needs to hire a dynamically positioned drillship or semi-submersible, which it hopes to do later this year.

Getting my bearings in Port Stanley


http://www.upstreamonline.com/live/article203964.ece

balls or otherwise?

Actually a compass bearing (magnetic north) that close to the South Pole is probably quite tricky to get.

A bit of a bounce at the end....blue start tom

Lots of buys today anyway... only the nervous ones will run.

Too bad it is moving downwards, marky due to general market weakness and also to this top navy admiral mentioning about war in the Falklands.

More sells than buys today...guess people are nervous and scared when war is mentioned.
Well, where there is oil, there is usually war.