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

if hyleo is currently short, he'd better think about covering his arse pdq ...... chances must strongly favour a (temporary) surge in sp when OG arrives and/or spudding starts ..... thereafter is somewhat in the lap of the gods

OG is in British waters..

Looks like the argies have had their noses put out of place. Nice one foreign office.

Come on desser get that oil gushing.


http://www.telegraph.co.uk/news/worldnews/southamerica/argentina/7253160/Argentina-increases-tensions-over-Falkland-Islands-by-seeking-to-control-shipping.html



The Foreign Office brushed off the Argentine move, saying the decree would not affect shipping through the area.

In a statement it said Argentine territorial waters were "a matter for the Argentine authorities. This does not affect Falkland Islands territorial waters, which are controlled by the islands' authorities."

A British Embassy spokesman in Buenos Aires added: "The way in which Argentina applies its laws within Argentine territory is a matter for Argentina.

"The United Kingdom has no doubts about its sovereignty over the FalklandIslandsand the surrounding maritime area." The Argentine statement stirs up an already escalating row between Britainand Argentina over oil drilling operations in the South Atlantic archipelago

Argentina claims Falklands ship controls February 17, 2010 - 7:19AM

Argentina has asserted greater control over shipping to the Falkland Islands, saying ships headed through its waters to the disputed British-held territory must have its permission.

The move, which will stir up an escalating row with Britain over oil drilling operations in the South Atlantic archipelago, came in the form of a decree signed by President Cristina Kirchner and announced by her chief of staff Anibal Fernandez.

"All ships that wish to move between ports in continental Argentina and ports in the Malvinas Islands (the Falklands), or that wish to cross Argentine territorial waters as they head to the islands" require prior permission, Fernandez said on Tuesday.

Britain and Argentina's rival claims of ownership over the Falklands exploded into war in 1982 after Argentine military rulers seized the islands, only to be defeated and expelled by a British naval force.

Argentina claims the islands are an integral part of its territory; Britain has held and occupied them since 1833.

Now, British oil drilling operations around the Falklands have whipped up new tensions with Argentina almost 30 years after the two countries went to war.

The former foes locked horns again last week after Buenos Aires blocked a shipment of pipes it said was bound for the Falklands.

Authorities boarded the foreign flagged "Thor Leader" in the southern Argentine port of Campana after learning it was about to take on a cargo of pipes destined for the Falklands.

Earlier this month Argentina lodged a protest with London about drilling in the seabed around the Falklands, which contains up to 60 billion barrels of oil, according to geological studies quoted in the British media.

Buenos Aires is furious that London continues to skirt UN resolutions calling on both governments to renew a dialogue on the sovereignty of the Falklands.

Britain in January rejected Argentina's latest claim to the islands.

Buenos Aires has urged a solution along the lines of what Britain agreed for the Chinese territory of Hong Kong.

The 1982 conflict lasted 74 days and cost the lives of 649 Argentine soldiers and 255 from Britain.

handbags at dawn ..... they're taking too many rugby pitch antics to heart!

http://www.businessweek.com/news/2010-02-16/falkland-battle-lines-form-over-jurassic-oil-search-week-ahead.html


No Point



Theres no point in Argentina continuing to call on international bodies such as the United Nations and the Organization of American States to press its claims, said Carlos Escude, 61, a foreign policy advisor to Argentinas Foreign Ministry in 1991 and 1992. Neither has the power to make the U.K. change its stance.

There is no future in pursuing those options, Escude said in a Feb. 9 interview from Buenos Aires.

The U.K. government reiterated the Falkland Islands right to pursue oil and gas exploration. We are absolutely clear this is a legitimate business in Falkland Islands waters, a Foreign and Commonwealth Office spokesman said by e-mail. Argentine reaction is a matter for the Argentine government. Argentina is an important partner for the U.K.

The development of an oil industry would enable the windswept islands, which now depend on sheep farming and fishing, to diversify its economy, according to Edwards. Some 4,200 people live there, with about 1,700 of them based at the Mount Pleasant military complex.



Jurassic Layers



Oil around the Falklands lies within Jurassic or Triassic layers under the seabed, dating back more than 145 million years. These are deeper than most of the worlds offshore discoveries, according to New York-based Bernstein Research, an investment research company.

Crude oil futures traded at $74.94 a barrel on the New York Mercantile Exchange at 9:31 a.m. London time today. Prices have doubled in the past year.

The price of oil is not the main reason for the lack of success in 1998, Moody said. The world is a different place and theres been a huge leap forward in seismic technologies.

The Falkland Islands are currently home to a number of UK-listed oil companies, including Desire Petroleum (DES), Rockhopper Exploration (RKH), Falkland Oil and Gas (FOGL), Borders & Southern Petroleum (BOR) and, most recently, mining heavyweight BHP Billiton (BLT).


However,David Hart, research analyst at WestHouse Securities, commented: "This is not a new issue for them. Desire, and indeed Rockhopper and the fellow oil explorers, have known for a while that the use of the ports would be restricted. The fact that this has occurred now has not come as a nasty surprise and I am sure they would have prepared sufficiently for this move.


"I can't see it stopping other UK-listed companies from entering the region in future either."

http://www.iii.co.uk/articles/articledisplay.jsp?section=Markets&article_id=10078825

Argentina has declared that it is taking control over all shipping between its coast and the Falklands, in effect awarding itself the power to blockade the disputed islands.

Made the BBC1 news today.

send in the gunboats, i say ..... time to teach those dirty foreigners a sharp lesson!

I thought you were pretty blasabout the whole Argentine thing??? Slight change of stance now!

Yeah, cynic, I thought you were a peace-making Indian chieftain smoking peace pipes.

http://uk.reuters.com/article/idukwlb774220100217

LONDON, Feb 17 (Reuters) - British oil explorer Desire Petroleum (DES.L) said its drilling program in the Falkland Islands will go ahead as planned despite a move by the Argentine government to restrict access in the area.

Argentina, which claims sovereignty over the British-ruled islands, said on Tuesday that boats sailing from its ports to the Falklands would need a government permit, deepening a long-running row over exploration in the disputed archipelago [ID:nN16238065].

"This whole situation has unfortunately been anticipated for months," said a spokesman for Desire on Wednesday.

"Desire's logistics are unaffected."

The drilling rig the 'Ocean Guardian', currently on its way to the Falklands, would be the first to drill in the South Atlantic islands since 1998.

Desire's shares were down over 3 percent on Wednesday following the Argentine announcement. Three other explorers planning drilling in the area were also down - Falkland Oil & Gas (FOGL.L) was down 3.2 percent, Rockhopper Exploration (RKH.L) was down 1.6 percent and Borders & Southern (BSTH.L) was down 4.4 percent

my stance and attitude remain unchanged ...... just so much sabre-rattling and handbag swinging

as soon as drilling starts the argies will back off until a major strike is achieved.

of course and at least ..... as i posted a little while back, it is not remotely in argentina's interest to truly hinder the exploration, which is the risky and expensive bit ..... if commercial quantities of oil are indeed found, then a different ballgame starts, but that will still end with a diplomatic solution

You are probably right, but the reasons for the previous conflict were not to necessarily acheive anything matierial, but to deflect attention away from a poor military government by achieving a moral/physical victory & thus placating the restless natives. I'm not sure that the economic ills are any better now in Argentina.

the natives are always restless in Argentina but they ae not stupid , the military know they do not have the financial resources to take us on again.

Desire Petroleum and the Falklands on ITN news at 10pm tonight,must thank the Argies for all this free PR


17:03 UPDATE 1-Argentina's permits won't affect Falklands oil drill AFX UK Focus
By Rosalba O'Brien and Jonathan Saul

LONDON, Feb 17 (Reuters) - An oil drilling project in the Falkland Islands will go ahead as planned despite a move by Argentina aimed at restricting access in the area, analysts and an exploration company said on Wednesday.

Argentina, which claims sovereignty over the British-ruled islands, said on Tuesday that boats sailing from its ports to the Falklands would need a government permit, deepening a long-running row over exploration in the disputed archipelago.

Desire Petroleum, the British oil explorer which is due to begin drilling in the islands shortly, said the move would not affect its drilling programme.


"This whole situation has unfortunately been anticipated for months," a Desire spokesman said. "Desire's logistics are unaffected."
Arbuthnot analyst Dougie Youngson said the company should be able to work around the restrictions.

"Logistically it makes life a bit more complicated but it's manageable," Youngson said.
Argentina protested to Britain earlier this month over plans to begin offshore exploration drilling near the remote Falklands, which are called the Islas Malvinas in Spanish. The nations fought a short war over the islands in 1982.
"It's all sabre rattling," Youngson said. "They want to exert a bit of muscle but I don't think it will come to anything."

John Dalby, chief executive of maritime security company MRM, which provides risk assessments to shipping companies, said drilling companies could bypass Argentina and pick up bunker fuel and other resources at ports in Brazil.

"If a company wants to establish a platform out there serious consideration should be given to chartering a relatively small tanker loaded with fuel oil and marine diesel and ship-to-ship transfers could then be conducted, weather permitting, en route," he said.




FRONTIER EXPLORATION

Britain's Tristan da Cunha islands, which are quite close to the Falklands, could also be used as a logistics hub, he said.


J. Peter Pham, an adviser on strategic matters to U.S. and foreign governments, said Argentina's move could create "momentary disruptions" for companies, but added they would divert their shipping needs elsewhere.
"Ultimately it may determine where these energy supplies will be shipped through and that will be in Argentina's long term disadvantage," he said.
The drill is likely to become a more significant issue should oil actually be discovered, analysts said.

Arbuthnot's Youngson said earlier this week in a note on Borders & Southern, which also has interests in the area but has not yet contracted a rig, that this was "frontier exploration" with a 20 percent or less chance of success.

Desire has contracted the 'Ocean Guardian' rig, which is due to arrive by the end of the week and would be the first to drill in the South Atlantic islands since 1998.
Desire's shares pared earlier losses of over 3 percent and were up 0.46 percent at 1642 GMT, while Borders & Southern was down 3.62 percent.

Two other explorers with Falklands drilling campaigns planned were also down - Falkland Oil & Gas fell 3.49 percent, while Rockhopper Exploration slid 0.39 percent.
(Additional reporting by Sarah Young, Editing by Paul Hoskins and Sharon Lindores) Keywords: FALKLANDS/DRILL

Watch out they will want Gib next.