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

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.

Well the news today about the fast tracking is great news and i would of thought there has been presure to do this by the so called future farm in partner.

I assume they, possibly in conjunction with potential farm-in partners, must have already been in discussions regarding mobilisation of a rig or drillship this Austral summer.

Some of you do not have acess to AVDFN site but two members of the B&B went to the AGM last nightand and these are there post.

CAPTGUNS

Well the AGM was very good and I was impressed very professional people running the company.

I have seen the RNS on the fast track of the processing so no comments there.
I asked 2 questions from the floor as well as some others to the Dr.C.B. Phipps
and Dr. I.G.Duncan before and after the meeting.
It was confirmed that they can drill at any time of the year in the Falklands.
The Quality of oil to be found in the Falkland is below "Brent" but above "Arabian"
The opionion was @ 92% of Brent crude prices 38 US Brent 35 US Falkand Desire.

It looks very promising from a technical point of view as the 2D seismic shot in the past was aimed at between 2 to 2.5 seconds. (2000 - 2500 mts.)
The 3D was aimed at a deeper target 3 - 4 seconds (3000 - 4000 mts.)
Basically you need a bigger gun array (sound source) to get right on down there.

Meic took a lot of notes on the economics etc. so hopefully he can confirm what I have written and also post his stuff.

I have topped up this morning you will have to do your own thing.


MEIC who took notes and came out with

Dr.Phipps told the meeting last night that DES were "going for a 50% cut" of any farm out deal,and that potential farminees were "very seriously interested" in working with DES.Furthermore,he pointed out that interest in DES "has been greater in the last 6 months than at any time during the last 6 years."He also told Capt Gun and myself in a conversation after the meeting that,if the 3d results were encouraging,he expected the partners "to compete with each other" to work with des


If this is the case for a 50% cut i find it fantastic news and with the oil price still high and potential farm in- partners lineing up and fighting for a slice of this action we are just waiting for the 3d sesmic to confirm there is oil is down there and i would think some of this has been compleated and discussion are taking place.

I would not like to try to value desires share price at the moment or what it might be in 6 months time ,but i would of thought it should of gone past the 16p sticking mark today and has not, why i dont know but very surprised especially with such postive feed back from people who went.

Am postive with this share now than ever that good news is round the corner and have topped up again today.

i lost a packet here during the "Falklands is the next Saudi " bubble. no-ones fault but mine. will be watching closely to try and get a bit back. i dont like losing ( whoever is at fault )


which, btw is ALWAYS the investor

good luck

me too superrer, a long way to go before i B.E.
g`luck

Moving up very nicely. Good seismic results and then an announcement to drill will see this go way, way higher imo.

I'm ever more confident this will be the share of the year.. up many times the price we're at now. :) looking forward to great excitement.

great little tick up today very high volume for this share and we just need the good news . oily am still tickled with that remark about spec savers.

does nobody else thnk this is just tracking the price of crude? i would love to be wrong for reasons stated earlier

No if when i first started this post back in December and bought you would be 50 % up on your holding now, I must point out that yes we are in a bull run in oil and i can not see it ending for a least a year in front of me as most of the country pushing the oil out are at full capasity at the moment and how long can they keep that up.

. Meanwhile in both Iraq and - increasingly in Saudi - heightened terror threats raise the spectre of very significant disruptions to supply. My ultimate wild card scenario (the House of Saudi toppled Brent at $50 plus) looks increasingly plausible.

All these factors are making the Falklands looking very exciting at what oil lies under the sea , thats why oil companies are falling over each other for a slice of action.

markymar

i was really talking about more rcent increases

Thursday, 3 June 2004
Search News:

Falklands
Mercosur
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Falklands-Malvinas
Thursday, 03 June


Active year for Minerals Department.



Falkland Islands Governor Howard Pearce in his annual address to the Legislative Council said that the Department of Mineral Resources had an active year with interest in exploration for hydrocarbons in frontier areas increasing in the second half of 2003 because of unrest in the Middle East and consistently high oil prices.



Enquiries from oil companies have been significant, particularly following attendance by the Minerals Department at an oil convention in Barcelona in September. Contact with companies was consolidated in April when FIG and British Geological Survey consultants attended the annual AAPG Convention in Dallas, Texas, said Governor Pearce.
Desire Petroleum which has extensive acreage in the North Falkland Basin funded this year an 800 km2 3D seismic survey this year. Results will be available next September and should assist in pinpointing drilling targets.

Spectrum Energy, a British geophysical survey company which conducted surveys in the northern offshore areas in the 1990's, has also been committed to encouraging continued exploration.

They have, at their expense, reprocessed data using new techniques and have been actively marketing these data to oil companies, indicated Governor Pearce.

The Falklands Hydrocarbon Consortium, led by Global Petroleum and with partners Hardman Resources and the Falkland Islands Company completed reprocessing and interpretation of South Falkland Basin data, and has worked closely with the Department of Mineral Resources in preparing a further work programme.

It is anticipated that the group will undertake a 2D seismic survey over their licensed acreage within the next year.

Governor Pearce underlined that prospect for further investment in exploration for hydrocarbons later this year looks positive as interest in the area increases.

Regarding onshore exploration for minerals in the Islands, there has been significant progress with a new company, Falkland Minerals Limited, registered in Stanley.

The company comprises previous licences holders and new investors, RAB Capital, a London based company. An aeromagnetic survey was flown over the Islands during April and May and the results will assist the operator, Global Petroleum, in designing a shallow drilling programme to start next summer.

Meanwhile, draft mining legislation is to be considered by Councillors later this year in parallel with environmental legislation, concluded the Governors minerals report.

INTEREST REVIVING IN THE FALKLANDS WITH SECOND 2004 SURVEY ANNOUNCED

JEREMY CRESSWELL


Global Petroleum, together Cambridge Mineral Resources and Falkland Islands Company, is carrying out a two-month aero-magnetic survey of the Falkland Islands in a bid to better map the UK dependency's hydrocarbon (coal, oil and gas) and other strategic mineral resources.

The partnership, known as Falkland Minerals Limited (FML), is using Fugro Airborne Surveys, which will track lines at 1,000m and 500m spacings, with allowance for higher-density 250m spaced lines over previously identified areas of interest.

Results of this survey are expected to be available in the middle of this year and the intention is to follow up with selective land-based drilling.

The move follows a decision by Global early last year to buy 4,340km of South Falklands Basin 2D seismic to determine the most prospective offshore areas to commence exploratory activities.

In this case, Global is working in partnership with Hardman Resources (30%) and Falkland Islands Company (20%). They collectively hold 10 South Falklands Basin blocks off the island group's south and east coasts.

The South Falklands Basin is distinct geographically and geologically from the North Falkland Basin, which was the focus of exploration activity during 1996-98, with both seismic survey and drilling carried out.

While both basins are under-explored, North has at least been drilled, whereas South has only been subject to seismic (8,000km shot in 1993).

This basin is said to be analogous to the Malvinas and Magallanes Basins in Argentine waters to the west, where a well drilled by Exxon in the early-1980s flowed 3,200 barrels per day of oil, demonstrating, according to Hardman, a nearby working petroleum system.

2004 is becoming an active year in the Falklands sector, which has been virtually moribund since the disappointing late-1990s drilling campaign.

During Q1, UK-listed Desire Petroleum shot seismic across a number of key targets in the North Falklands Basin, claiming promising early results.

In March, Energy reported that Pan American Energy had acquired interests in the Malvinas Basin offshore Tierra del Fuego - in other words, Argentine waters, but which border on to the Falklands sector.

Pan American has secured a 35% interests in blocks 40 and 46 operated by Repsol-YPF. Total, which has a 31% stake in block 46, has apparently ordered a seismic campaign across both blocks (aggregate area 6,500sq km) with a view to exploration drilling starting next year.

We reported in March that there was a twist to the Pan American transaction in that it would put BP in the South Atlantic as it is a 60% stakeholder in the company, with Argentinean corporation Bridas holding the balance of ownership.

Whether this campaign can in any way be made to link with Desire's aspirations to restart drilling in Falklands waters is open to question, though it will perhaps be investigated. BP's indirect involvement could prove important in this regard.

The super-major did not participate in the Falklands drilling campaign of 1997-98 as its priorities lay elsewhere at that time. The Tierra del Fuego manoeuvre begs the question as to what BP might do next in the South Atlantic.

An industry source told Energy last month that the UK Government was making a serious mistake by not implementing and funding a systematic search for oil and gas in Falklands waters, especially as the North Sea is now in decline.

He questioned why 20 years had effectively been squandered since Prime Minister of the day, Margaret Thatcher, took Britain to war with Argentina over Falklands sovereignty.

I see Desire made it into 'Upstream' again :-

Speedy turnaround on cards for Falklands data
Upstream, Friday June 4
By Iain Esau

UK MINNOW Desire Petroleum is trying to accelerate the interpretation of seismic from a Falkland Islands survey in order to allow early viewing of data, writes Iain Esau.

Chairman Colin Phipps said all of the 3D data acquired in the North Falkland Basin had now been loaded and processing was proceeding well.

However, to expedite data interpretation, Desire's board has decided to implement a fast-track process which, it is expected, will allow interpretation to begin at the end of this month, with preliminary results available by late August.

The company said these results will then form the basis of continuing discussions with potential farm-in partners, including the selection of drilling locations.

Desire operates Tranches C, D, I and L in the North Falkland basin where eight prospects had been mapped earlier.

These include Ann (282 million barrels potential), Pam (201 million barrels) and Liz (392 million barrels) in Tranche C, Ninky (376 million barrels) straddling C and D and Anna (477 million barrels) in tranche D.

Tranche I holds Dawn (146 million barrels) while L contains Ruth (259 million barrels) and Kate (285 million barrels).

Fugro's 800 square kilometre plus 3D shoot covered the three largest structures in Tranches C and D and also extended in to Tranche F who may also host part of the Ninky prospect

thanks to oily for this one.