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

And I'm sure the Argentines will cause problems soon.

Argentina Summons U.K. Envoy Over Falklands Drilling

Feb. 2
Argentinas Foreign Ministry summoned the U.K. ambassador over plans by Falkland Oil & Gas Ltd. to start drilling a well near the islands in the Atlantic Ocean.

Argentina will issue its most energetic protest against the imminent start of drilling near the Falkland Islands archipelago, the ministry said in an e-mailed statement. The islands, known as the Islas Malvinas in Argentina, lie about 480 kilometers (298 miles) off the South American mainland and are claimed by Argentina as its territory.

Falkland Oil & Gas and partner BHP Billiton Ltd. expect to begin drilling in their Toroa offshore field in April, Chief Executive Officer Tim Bushell said in an interview last month.

Argentina, which fought a war with the U.K. over the Falklands in 1982, has repeatedly protested efforts to explore for energy deposits off the islands. In 2007, then President Nestor Kirchner voided a 1995 oil and gas exploration agreement with the U.K. that had been suspended for five years.

The Foreign Ministry reiterates its sovereign rights over the Malvinas Islands, South Georgia and the South Sandwich Islands and the sea surrounding them, which form a part of its national territory, the statement said.

A message left by Bloomberg News at the U.K.s Embassy in Buenos Aires wasnt immediately returned.

Argentine Claim

Argentina traces its ties to the Falklands to 1820 when Colonel David Jewett claimed possession in the name of the United Provinces of the Rio de la Plata. England assumed military control of the archipelago in 1833, evicting Argentine authorities the following year, Argentinas Foreign Ministry said on its Web site.

Argentine military dictator Leopoldo Galtieri ordered the invasion of the Malvinas on April 2, 1982. Argentine troops were defeated by British forces on June 14, 1982. The two-month conflict took the lives of 255 British and 649 Argentine soldiers.

The British victory bolstered the government of then U.K. Prime Minister Margaret Thatcher, known as the The Iron Lady, and helped her win elections the following year.

This looks extremely threatening... they will do everything necessary to defend and preserve their rights to the oil.


Argentina protests Falklands oil exploration plans
Tue Feb 2, 2010


BUENOS AIRES, Feb 2 (Reuters) - Argentina protested to Britain on Tuesday over plans to begin offshore oil exploration in the disputed Falkland Islands, which the two countries went to war over in 1982.

Local media reported that British oil company Desire Petroleum is about to start exploration drilling off the coast of the remote South Atlantic archipelago. Geologists think the area around the islands could hold rich energy reserves.

"What they're doing is illegitimate. It's a violation of our sovereignty. We will do everything necessary to defend and preserve our rights," Foreign Minister Jorge Taiana told reporters after meeting a senior British Embassy official.

The islands, which are called the Islas Malvinas in Spanish, have been under British control since 1833.

Argentina's Foreign Ministry said in a statement it "strongly rejects the United Kingdom's intention to authorize energy exploration and production in part of Argentina's continental platform."

Nearly three decades after the brief Falklands war that killed almost 1,000 people, tensions over the islands continue to simmer. Indications that there could be large oil reserves around the Falklands have raised the stakes in the sovereignty dispute.

Thought price would be up to 140-150 now with imminent drilling???
People getting nervous or just profit taking?

It is because there is more news in the financial times today saying there is a possibility the Argentinian government would block the passage of Ocean Guardian once it reaches its waters.
This conflict may turn sour for DES and RKH.

And directors are sharing their own shares. Get out of DES now!


4 February 2010

Desire Petroleum plc
("Desire" or "the Company")

Directors' Shareholdings, Issue of Equity and TVR

The Company announces that on 2 February 2010, Phipps & Company Limited, a company in which Stephen Phipps, Chairman, and Anna Neve, a Non-executive Director, are interested, exercised 6,738,339 options over new ordinary shares in the Company at an exercise price of 32.46p per share.

These options were due to expire on 23 June 2010 and, taking into account the forthcoming drilling campaign in the North Falkland Basin, it was considered that exercising the options at this time was the only way to ensure that they could validly be exercised prior to the date of expiry.

Following the exercise Phipps & Company Limited sold 1,808,339 ordinary shares at an average price of 115.2p per share

In addition, on 2 February 2010, Ian Duncan, Chief Executive Officer, exercised 465,244 options over new ordinary shares at an exercise price of 35.21p per share. Following the exercise, Mr Duncan sold 200,444 ordinary shares at an average price of 115.3p per share.

Details of these transactions and their effect on the shareholdings of the relevant Directors are set out below:

Director
No. of options exercised
No. of shares sold
Post-transaction shareholding



Stephen Phipps
6,738,339
1,808,339
38,882,633* (11.9%)

Ian Duncan
465,244
200,444
700,169** (0.21%)

Anna Neve
6,738,339
1,808,339
38,662,633* (11.9%)

* These include an interest in 35,712,633 shares held by Phipps & Company Limited and 2,840,000 shares held by the Phipps & Company Retirement Benefit Scheme.

** This includes 107,143 shares held by Chase Energy Limited.

I meant they are SELLing their shares.

If you read it properly, they are exercising options. Directors in cos sell enough shares in order to take up their options i.e Buy shares at the option price (nice work if you can get it) so they haven't sold just swapped and in fact have more shares but at lower cost.

My feelings are that Argentina are angling for some sort of deal, and if so the more sabre rattling they make the more likely they will get one. It may in the end be best for all, as although they (Argentina) are in a mess both financially and politically, we also cannot afford another Falklands War, either on the basis of financial cost or/and loss of life.
Not saying the deal should involve sovereignty or be anything more than a financial percentage.

Not that the Argies deserve a deal, just that if push comes to shove both sides may find a deal attractive.

If any sort of trouble starts, such as even semi passive obstruction that can only be detrimental to both sides, with the Falkland Islanders stuck in the middle.

All IMHO of course

endorses the likelihood that huge oil fields exist, but war is highly unlikely - Falklands are internationally recognised as British Territory. A joint venture "deal" is more likely and DES would benefit massively from that, not least the logistical advantages

If you read between the lines, the directors are taking profits indicating they are not sure of what might happen in the region, hopefully not war but I guess the Argentines have got nothing to lose at all. UK have much more to lose financially when it already needs 13 trillion pounds to balance its books. If war takes place, UK has to send troops all the way to their doorstep to put up a fight.

Hlyeo,

Agree re the taking profits whilst not sure of what might happen.
Also it may have something to do with CGT.
Remember that profit from shares taken prior to April they will be taxed at 18% CGT but after the April Budget CGT is expected to increase to 20/25%. So that date will be near the drilling results. So allowing for holdups and the up/down of the sp till results come in it does make sense to sell some shares at current levels.
As we usually see sells around that time of the year to make CGT sense, due to the added risk of a CGT increase I expect to see many more sells in companies that usual.

hlyeo98 you talk some crap!!!!

hyleo - i actually agree; you are spouting out of your arse ..... that doesn't mean DES is destined for the stars; that will only happen if it hits a shedload(???) of oil

Nothing has changed,either the oil is there or not. Which flag is the Ocean Guardian flying?

I'm just saying we have to be cautious and not to be totally carried away by some rampers. Why did Falklands War happened in the first place???
Can we be 100% sure there will be no war?
I wish I live in Utopia like you guys.

Am I talking crap or somebody loving his share too much?


FT says, after 'furious reaction' from Argentina,
Malvinas conflict 'may have reawakened tensions'.


Great Britain strongly rejected Argentina's protest regarding plans for drilling for oil and gas around the Malvinas islands, and now fears a new row over their sovereignty "may have reawakened the tensions that erupted into war in 1982," the Financial Times said.

British Prime Minister Gordon Brown "is adamant that exploratory drilling should be allowed to take place," the article says, but "is anxious to ensure that the dispute with Buenos Aires does not escalate into military confrontation."

A British diplomat told the morning paper that it is "legitimate business in the Falkland (Malvinas) Islands waters. It should be allowed to carry on and it will carry on."

The imminent start of drilling sparked "a furious reaction in Argentina".

Foreign Minister Jorge Taiana sent Britain's chargd'affaires Simon Thomas a note saying what they were doing was "illegitimate" and labeled it a "violation of our sovereignty," while vowing they would do "everything possible to defend and preserve our rights."

Taiana explained that the argentine government "strongly rejected the United Kingdom's plans to authorize the development of the hydrocarbon industry in the Falkland Islands," as it considered it "unilateral."

He also insisted on the sovereignty right over the islands that created a stand-off between both countries in 1982, and recalled that Argentina ended in 2007 all hydrocarbon cooperation accords signed by London and Buenos Aires in 1995.

According to the Financial Times, an Argentine government source said "Buenos Aires had notified companies involved in the sector based in Argentina that any involvement in exploration in waters around the islands would be an illegal activity'."

In response, a British diplomat expressed that the British government's position "is to support the development of the hydrocarbon industry in the Falkland Islands."

The article says that the diplomat also refused to discuss whether Britain was making contingency plans to send military forces to the area "to ensure that Argentina did not interfere with the planned oil exploration."

"One of the UK companies exploring for oil and gas in the area, Desire Petroleum, has contracted a rig, the Ocean Guardian, to begin drilling. The rig is expected to arrive in the area in mid-February to begin drilling prospects in the North Falkland basin," says the paper, while explaining that "British diplomats say there is little expectation of direct military action by Argentina."

However, that article warns that diplomats remain "alert to a possible alternative course of action: Argentina attempting to disrupt the passage of the rig using civilian vessels."

The Financial Times ends the article by saying that "unlike the situation at the time of the Argentine invasion in 1982, the Falklands are well defended with four eurofighter jets, at least two warships and an infantry company posted at all times."

same response as my posts 107 and 109 on XEL
putting your money with your mouth would lend at least some credibility to your apparent belief in your own rattlings

getting touchy cynic....

hi emu-lator ..... not really; just get fed up with some nonsenses, just as others get fed up with mine from time to time ...... actually have very strong doubts that hyleo shorted anything, for he would prob have been rather moe forthoming earlier had he done so