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

ITS A BUY WITH THAT NEWS its just people selling who can not wait 6 months, a lot can happen in that 6 month period.

are MMs playing darty?

Well, no big shock at the length of time it's going to take to process the 3-D survey. Four months, six months - what the hell, we've waited long enough, a few more months won't make any difference. Drilling by Q4/04 or Q1/05.

what happened to block F ,oily as i have great respect for your knowledge on this subject do you think it will be less than 6 months as they have had some of the data for months and this could of being read already and do you think we will see one farm in partner or can you see more than one diffrent farm in partner on diffrent tranchers drilling.

I really don't know, Marky. As ever in the oil industry there are behind the scenes 'need to know basis' type stuff going on - and quite basically we don't need to know just yet............I'm sure 'F' was bombed too, we'll know soon enough in Desire's Annual Report.

cheers oily

the news released confirms to me that this is a potential 10x bagger, but it won`t be overnight as some seem to think, or expect. solid growth takes time and unless you are extremely lucky you don`t make mills in a few weeks. I`m in for more.
good luck and bestest

This is the best chance for a 10 bagger all year IMHO but it will take all year to achieve, I think yesterdays reaction to what is good news is a result of short termers. DES probably wouldn't be talking to third partyies unless they were pretty sure of the results. In which case you can assume that they have found the right type of oil and this cojmpany is worth significantly more than its current market cap.

In a recent interview with phipps on wall street reporter he said if 2 of the tranchers were on land they would be taking the oil out now....fact.

Is this stock not history repeating itself. Last time they did the survey, they even found oil, but not in commercial quantities. Extracting oil from the sea bed is many times more expensive than from land strikes.

Get a grip on reality this is going no where until 6 months hence, and even then there will be so many if's or but's, not least the political situation (Falklands Basin which a certain South American country has claims too).

Anyone remember the exploration fiasco last time out and then more fiasco when Cambridge Mineral found diamonds of a quality and quantity akin to South Africa, oh yes,not!

Perhaps those investors who are gambling on a rise in share price should take a note of this:

Post-Drilling Analysis of the North Falkland Basin

- Part 2: The Petroleum System and Future Prospects

P. C. Richards* and B. V. Hillier**

*British Geological Survey, West Mains Road, Edinburgh, EH9 3LA, Scotland

**Shell Production and Development Ltd (Falklands Branch), Shell Centre, London

Correspondence to p.richards@bgs.ac.uk

Manuscript of paper published in Journal of Petroleum Geology, vol 23(3), pp 273-292

Six wells were drilled in the North Falkland Basin in 1998. Five of these wells recorded oil shows,
and up to 32% gas was also recorded in mud returns to the rig floor. However, none of the wells
encountered commercially viable petroleum accumulations.



A mug and his money is easily parted.

Aww, c'mon, Stuckinrut, play fair !

You could at least give the full account of the post-drilling analysis from 1998.

OK, tell ya what, I'll give the link for you. Helluva deal, eh ! ;)

http://www.desireplc.co.uk/pdfs/journalpart2.pdf

Geo Pacific finishes seismic survey for Desire Petroleum

SEISMIC vessel Geo Pacific has completed its 3D survey in the North Falkland Basin on behalf of Desire Petroleum PLC.
A meeting of the Mineral Resources Committee heard yesterday that the vessel arrived in the survey area, Tranches F, C and D on January 20, 2004 and did not encounter many delays, apart from some kelp catching on streamers.
The vessel and her chase boat Thor Supporter made two crew changes in Stanley during the survey.
Desire Petroleum says it will be several months before the data will be processed and interpreted. The company will be seeking partners to initiate a second drilling campaign in due course.
Also discussed at the meeting was the aeromagnetic survey being carried out over the Islands. The aeromagnetic survey over much of East and West Falklands began in the week beginning March 22.
The Cessna 400 aircraft of Fugro Airborne Surveys NV is contracted to Falkland Minerals Limited to acquire data comprising lines at 1,000 and 500 metre spacing, with an allowance for higher density 250 metre spacing over areas previously considered of interest. Results from the survey are expected to be available in the middle of this year.

So, they did do tranche F as well, Marky. Good research !

cheers oily

this come fly with me all over it

As your name implies Stuckinrut, you certainly will be if you don't get a few of these. There's a huge quantity of oil out there, Fact. It's getting to it, the tricky part and in 98 it wasn't commercially viable but the oil price is now over 3times that level. Falklands war too - remember, I think we stuck our claim firmly in place! and theremay be more reason than national pride, this further data will be miles ahead of the data back in the nineties and there is already talk with major oil companies. This is the most exciting oil prospect this country has and once the majors are aboard DES will no longer be a minnow. Hold fire and best of british to all holders.

well said robstuff a must share to have in your portfolio even if its for the ride.Its pushing all the time to get past the 16p barrier and when it does push through i think we can see it between 20p to 30p in the near future.

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2003

CHAIRMAN'S REPORT

Following my announcement, in the 2003 Interim Report, that your Board intended
to raise funds in order to conduct a 3D seismic survey, to be acquired by Fugro
Geoteam A/S, over some of the larger prospects for oil in Desire's tranches C
and D in the North Falkland Basin, shareholders were sent details of a Placing
and Open Offer by Seymour Pierce Ltd., the Company's Nominated Advisor and
Broker, on 24th December 2003. As a result, a total of 50,178,750 new shares
were subscribed for at an issue price of 10p, raising just over #5 million
before expenses. This sum would have been sufficient to have acquired the 1000
sq. km. of 3D seismic envisaged in the 2003 Interim Report but would have left
little headroom for other expenditure. Accordingly, your Board felt it prudent
to reduce the area of the survey to 800 sq. km. covering the three largest
prospects as currently interpreted.

Fugro Geoteam A/S were contracted, on a fixed-price turnkey basis, to acquire
the 3D seismic and the survey was successfully completed on 1st April 2004, with
a final total of 804 sq. km. Data quality is good and processing has already
begun at the facilities of Robertson Research International Ltd. The volume of
data is very considerable and processing is likely to take until September of
this year, at which time a detailed geological interpretation of the survey will
be made. The interpretation is expected to take about two/three months to
complete. The well locations for the next round of drilling will be selected on
the basis of this interpretation.

Future drilling remains dependent upon a successful farmout and I am pleased to
report a significant increase in interest in the North Falkland Basin by the Oil
Industry. The continuing strength of the oil price, together with the
much-publicised failure of oil companies to replace their reserves, especially
from traditional areas such as the North Sea, have led to renewed interest in
frontier exploration in areas such as the Falkland Islands. A number of
companies have signed confidentiality agreements with Desire, in order to
interpret both the existing 2D and the new 3D seismic data. Discussions with
these companies will take place in parallel with the 3D processing and
interpretation with a view to agreeing a farm-out drilling programme with a
partner, or partners, to be initiated in 2005 dependent upon rig availability.
At present, rig availability is good and costs are low as a result of the
downturn in offshore drilling worldwide.

The financial figures for the year ending 31 December 2003 were struck before
receipt of the proceeds from the Placing and Open Offer and do not, therefore,
represent the current financial position, which is much stronger. Cash resources
are sufficient for all of the processing and interpretation costs already
contracted for, plus the normal running costs of the Company for the next two
years. Your Board continues to manage overheads on a frugal basis and intends to
do so in the future.

In thanking my colleagues on the Board for their continuing support of the
Company, I would like to commend their enthusiastic commitment to its future as
demonstrated by their willingness, via the Placing and Open Offer, to
participate in that future by reinvesting their fees in the Company's shares.
The Company's success in maintaining a low level of overheads is due, in no
small measure, to the time and effort spent on the Company's affairs by my
colleagues on the Board; time and effort not adequately recognised by their
compensation. As in past years, therefore, it is intended to remedy this defect
by means of the award of share options.


Dr Colin B. Phipps
Chairman

In thanking my colleagues on the Board for their continuing support of the
Company, I would like to commend their enthusiastic commitment to its future as
demonstrated by their willingness, via the Placing and Open Offer, to
participate in that future by reinvesting their fees in the Company's shares.
The Company's success in maintaining a low level of overheads is due, in no
small measure, to the time and effort spent on the Company's affairs by my
colleagues on the Board; time and effort not adequately recognised by their
compensation. As in past years, therefore, it is intended to remedy this defect
by means of the award of share options.

Oily what do you make of this last bit ?

They're getting shares instead of pay. Obviously the directors expect the share price to rise from here.