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

Topped up for the last time until drilling update...plus a small spread...risky but 6 months for it to come right....

RKH might be a slightly safer play atm, as it will drop on a DES duster, but recover quickly as potential still there for their drilling campaign.

i can see no way in which RKH or any other of these falklands oilies can be safer than DES - safer being very much a relative word ..... where DES goes, so will the others for it is DES that will control sentiment across the board until such a time as the others start or at least get close to their own spudding.

Of course, but a DES duster would be a fait accompli for them, but would only affect temporary sentiment in others as punters would still expect results elsewhere, imo.

Topped up in Rockhopper as well.....less downside....and in the event of a strike even with a small ownership percentage will rocket just like DES.....6 wells to come.....must hit something by christmas...change that to : must hope they hit something by christmas....

am i not right in thinking that drilling started about 20th feb? ..... that being so, surely news not really expected until mid next week at the very earliest?

Not long now news in the next 7 days i would think,i see there was a MM "scap" sitting there all morning soaking up all the buys and now has moved and it could be a good sign for the price to start to go up.

Trimming out the dross & hype, the consensus seems to be that, assuming they haven't encountered any serious problems, they should now be at or reaching the logging stage (i.e TD has been reached), to be followed by well testing. Next week would be about right for news.

looking at the chart the trend doesn't appear too friendly.

Don't encourage hlyeo! He'll start on his shorting tirade again! ;o)

he's welcome to short, as are we all, but he needs to back his posts with some sort of logic and preferably money too

The original well plan stated 2.33 days for final TD E-logging and 8.65 days for testing........TD was a few days ago.

Also i see Desire was tipped in share mag yesterday as a BUY at 1.03p...just for halifax that bit.....a screaming BUY as the risk to reward was so great and if oil is struck will send the share price in to Orbit.

Level 2 12 v 1

SCAP still selling - 10k on offer at 94.50

marky seems still a heads or tails situation,rather buy at 40p than 1.03!

i'ld be happy to buy at 120+ on hearing a good result!

In your dreams !...on a very good result : that's if you are watching when the rns is issued : 140p minimum....you will struggle to get in, at barely a 25p premium.

The higher crude goes, the more chances there are of Desire finding a commercial amount of oil....because it will be less costly to develop.

sp still sinking where will it bottom?

http://www.falklandnews.com/public/story.cfm?get=5647&source=3

Mineral Resources Report (March 2010)
March 13, 2010
by Phyl Rendell

FALKLANDS DIRECTOR OF MINERAL RESOURCES REPORT (March 2010)


A meeting of the Mineral Resources Committee took place on Thursday, 11 March 2010. Following is the Directors Report by Phyl Rendell.


Approvals to Drill


Since the last meeting on 8 February the department has been focusing on ensuring that all the documentation is in place for the licensees to drill their wells. In addition to environmental and fiscal assessments of the basis of design and geological well plan for the Desire Petroleum 14/19-1 well (known as Liz) have been approved and the well was spudded on 22nd February. It is expected that the well will take 30 days to reach its target depth. Similar approvals are also in place for Rockhopper Exploration well 14/10-B (known as Sea Lion) to spud on completion of the first Desire well.


A review of the Safety Case for the drilling rig Ocean Guardian, was completed by the Health & Safety Executive in February with a recommendation that the rig was fit to drill in deeper water to accommodate BHP Billitons shallower well site. As a result, BHP Billiton has agreed a contract with Desire Petroleum to use the rig to drill one of their wells. The approval process is underway now, to ensure that BHPB complies with all the environmental, health & safety and technical conditions set out in Legislation. A comprehensive Environmental Impact Assessment Addendum was reviewed by the Mineral Resources Committee at the last meeting. Since then, the public consultation period has ended and there have been no further comments for BHPB to address. The Chairman has therefore approved the addendum. A waste management plan and oil spill plan have been submitted by BHPB and the latter will be considered at a meeting of Executive Council, as required by the companys licence terms, late this month.


Media Coverage


February saw considerable interest from all sectors of the media in oil exploration and a large number of enquiries have been responded to by the department. It has been important to clarify to the press that the current drilling programme is only the second in the northern basin and it may be a number of years before conclusive results indicate whether there are commercial hydrocarbons present. However, the investment by the industry is very much welcomed and the Falkland Islands Government is keen to facilitate their approved activities.


In addition to UK press enquiries there has been contact from Argentina and other South American countries and it has been useful to present the facts to these journalists.


Visit by Borders & Southern Petroleum


The Chairman, directors and managers of Borders & Southern Petroleum (BSP) visited the Islands during the week of 22nd February. Their objective was to present their Environmental Impact Statement to the public and their consultant from RPS accompanied them for this purpose. BSPs Chief Executive also gave a public presentation on the company and the findings from their work in their licensed area to the south of the Islands. After acquiring an excellent 3D seismic data set, BSP are keen to press on and drill two promising prospects identified from the data. To do this a deepwater rig or drillship is required and the company is actively seeking such a facility in order to drill their prospects.


Drilling Activities


Since the rig arrived on station and started drilling on 22 February the programme has been going to plan in spite of some difficult weather conditions. Movements to and from the rig have been going well and the shoreside base is in good order for the re-supply of casing, drill pipe, drilling fluids etc to the rig. All those who have worked on the lay-down area and port facilities are to be congratulated for their commitment and hard work in such a short time to establish a comprehensive oil facility for the industry.

Director of Mineral Resources, 6 March 2010

The world's most southerly marathon being run today - The Stanley Marathon. Weather is wet & windy, so seems unlikley that the runners will be able to see far offshore on their travel round the island.