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

Just as a matter of interest, how did you translate the article, marky? Google translator?

Hi Berlingo,

Nice to here from you again and it has been a long slog to get here but we are HEEEEEERE at long last.

Edd used to do the charts and was very good and hopfully he might pop back at some point.

So glad your still holding you must off put them in the bottom draw?

Harry

哈里， 我認為我給您會寫用中文看您的google是否將翻譯它，並且您可能可能給我一個回復用中文.....，但是給您的問題

http://itn.co.uk/24e76756e1d513c7e366d0ffc3bf164a.html

UN spokesman has just made it clear that "there is a caveat when UN are requested to mediate between two parties and that is that the request must come from BOTH parties".

http://www.businessweek.com/news/2010-02-25/falklands-oil-drillers-may-be-takeover-targets-deloitte-says.htmlBy Brian Swint

Falklands Oil Drillers May Be Takeover Targets, Deloitte Says
February 25, 2010, 3:07 AM EST

By Brian Swint

Feb. 25 (Bloomberg) -- U.K. oil and gas companies drilling near the Falklands Islands may become takeover targets this year, Deloitte & Touche LLP said.

Desire Petroleum Plc, Borders & Southern Petroleum Plc and Rockhopper Exploration Plc moved up in market value rankings for U.K.-listed independent production companies because they hold exploration acreage near the Falklands, Deloitte said in a report published today in London.

M&A is less difficult this year than last year, said Ian Sperling-Tyler, co-head of oil and gas corporate finance at Deloitte, in a telephone interview. The companies in the Falklands arent big enough to monetize those assets on their own. At some point, theyll farm out or be acquired by a bigger company.

Desire started the first exploratory drilling in Falkland Island waters since 1998 this week. Argentina, which claims sovereignty over the islands that U.K. Prime Minister Margaret Thatcher went to war to defend in 1982, summoned U.K. embassy officials on Feb. 2 to protest the imminent start of drilling by Falkland Oil & Gas Ltd.

Desire moved up 10 places last in the rankings of U.K. upstream companies to 14th place, and Borders & Southern broke into the top 25, Deloitte said.

Tullow Oil Plc, the U.K. explorer developing reserves in Uganda, and Cairn Energy Plc, which focuses on India, ranked first and second and accounted for 60 percent of the market capitalization of the top 25 companies, the report showed.

There is a fairly strong pipeline of oil and gas companies looking to raise funds, Sperling-Tyler said. I would expect a lot of capital market activity in 2010.

Desires Liz prospect has estimated resources of between 45 million and 783 million barrels, according to a report by Senergy Ltd. commissioned by the explorer. Falkland Oils Toroa prospect has estimated resources of between 380 million and 2.9 billion barrels, the company said in November.




--Editor: Will Kennedy, Jonas Bergman.



To contact the reporter on this story: Brian Swint in London at +44-20-7073-3444 or bswint@bloomberg.net.



To contact the editor responsible for this story: Will Kennedy at +44-20-7073-3603 or wkennedy3@bloomberg.net

Related Articles

however, never buy on the potential of t/o ..... buy because the basics and/or momentum look right

as you did in rbs......

more like greed and tempting fate with rbs!

Just seen Reuters release:
"DJ Repsol To Start Falklands Exploration End 2010"
(DJ Enarsa, Panamerican Partners In Falklands Drilling)

Hi Marky
Edd did the charts!! Now i remember ,thanks for that .
Hope he comes back .
Keep up the good work .Like your posts .Really exciting times ahead i hope!

Washington refused to endorse British claims to sovereignty over the Falkland Islands yesterday as the diplomatic row over oil drilling in the South Atlantic intensified in London, Buenos Aires and at the UN.

Despite Britains close alliance with the US, the Obama Administration is determined not to be drawn into the issue. It has also declined to back Britains claim that oil exploration near the islands is sanctioned by international law, saying that the dispute is strictly a bilateral issue.

Argentina appealed to the UN Secretary-General, Ban Ki Moon, last night to intervene in the dispute, a move Britain adamantly opposes.

The Secretary-General knows about the issue. He is not happy to learn that the situation is worsening, Jorge Taiana, the Argentine Foreign Minister, said after meeting Mr Ban in New York.

Falklands has right to oil exploration
We have asked the Secretary-General, within the framework of his good offices, to stress to Britain the need to abstain from further unilateral acts.

A top UN aide acknowledged, however, that Mr Ban would not be able to mediate because of Britains opposition.

Sir Mark Lyall Grant, Britains Ambassador to the UN, said: As British ministers have made clear, the UK has no doubt about its sovereignty over the Falkland Islands, South Georgia and the Sandwich Islands . . . We are also clear that the Falkland Islands Government is entitled to develop a hydrocarbons industry within its waters, and we support this legitimate business in Falklands territory.

Senior US officials insisted that Washingtons position on the Falklands was one of longstanding neutrality. This is in stark contrast to the public backing and vital intelligence offered by President Reagan to Margaret Thatcher once she had made the decision to recover the islands by force in 1982.

We are aware not only of the current situation but also of the history, but our position remains one of neutrality, a State Department spokesman told The Times. The US recognises de facto UK administration of the islands but takes no position on the sovereignty claims of either party.

Kevin Casas-Zamora, a Brookings Institution analyst and former vice-president of Costa Rica, said that President Reagans support for Britain in 1982 irked a lot of people in Latin America.

The Obama Administration is trying to split the difference as much as it can because it knows that coming round to the British position would again create a lot of ill will in the region, he said.

British officials in Washington said that they were comfortable with the US response to the dispute, but indicated that any American support for mediated negotiations would not be well received. It was up to the islanders whether they want mediation or not, one official said.

Britain has boosted the islands defences since the conflict, Admiral Sir Mark Stanhope, the First Sea Lord, said last night. We have built a massive runway. We have emplaced forces on the ground, we have sophisticated early warning systems. It is a different package. To compare the way we dealt with the issues in 1982 with today is nonsense, he said.

http://news.bbc.co.uk/1/hi/business/8537274.stm

Spanish oil firm Repsol to drill near Falkland Islands

http://www.economist.com/opinion/displaystory.cfm?story_id=15579936

Argentina and the Falklands

The beef in Buenos Aires
The Kirchners could have more oil if they stopped bullying Argentine business
Feb 25th 2010 | From The Economist print edition

plastic face Lady....god she is ugly

Look! She's got a chicken neck. Eurgh!

Three guys, one Irish, one English, and one Argentinian, are out
walking along the beach together one day. They come across a lantern
and a genie pops out of it.

"I'll give you each one wish," says the genie, "that's three wishes in
total."

The Irish guy says, "I am a fisherman, my dad's a fisherman, his dad
was a fisherman and my son will be one too. I want all the oceans full
of fish for all eternity." So, in the blink of an eye - FOOM! - the
oceans are teaming with fish.

The Argentinian is amazed so he says, "I want a wall around Argentina,
protecting her, so that no one will get in for all eternity. Again, in
the blink of an eye - POOF! - there's a huge wall around Argentina.

The Englishman asks, "I'm very curious. Please tell me more about this
wall."

"Well, it's about 150 feet high, 50 feet thick, protecting Argentina
so that nothing can get in or out," the genie explains.

"Fill it up with water."

http://www.guardian.co.uk/world/audio/2010/feb/26/guardian-daily-podcast-falkland-islands

Guardian Daily: The search for oil off the Falkland IslandsOur expert panel looks at diplomatic tensions between Britain and Argentina over oil exploration off the Falklands, in a special edition of our daily audio show with Jon Dennis

How will the oil industry affect the Falkland Islands?

Desire chief says its boom or bust as drilling begins
FOUR days into a drilling operation that has captured the
attention of the worlds media, Desire Petroleums Operations
Director Bob Lyons conceded: This is it: were a one trick pony.
Itll either be successful or it wont. It is very simple.
As Desires share prices rose on the back of news that drilling
had begun, and fell as Argentina ramped up its efforts to disrupt
the first exploratory drilling in 12 years, the man responsible for the
operation was unfazed by the current political situation.
We just want to get on with it, he told the Penguin News in
an exclusive interview yesterday. We were fully aware of what
Argentinas stance would be so we planned it so we wouldnt require
any support from anywhere locally. Were self sufficient, we
can do it all ourselves, he said. In view of the shipping
restrictions Argentina had attempted to implement he said
all the necessary equipment would come out of the UK, so it doesnt
affect us in the slightest. Plans had not been altered
because of the shipping restrictions, and Argentinas
response was anticipated, said Mr Lyons, adding that he thought the
press had made much of the situation. Even if Argentina were
to increase the level of pressure, it would not stop the operation,
he said. Out on Desires Liz prospect 100km off West Falklands,
everything on the Ocean Guardian - manned by about 90 workers -
is progressing according to plan. Weather conditions have been
less than ideal in the early stage, but are similar in many respects
to those encountered in the North Sea, where Ocean Guardian was
last operational, said Mr Lyons. It can cope with quite a lot.
Working in 2-3 metre seas with quite a lot of wind is fairly
routine, he said. We tend to get higher winds here for longer
periods, but its not untoward. Wind speed alone can restrict
crane operations and there are different limits of rig motion for
different operations. He also spoke of the prospect
of Desire becoming a takeover target if drilling succeeds: We are
a small company and exploration drilling is a completely different
animal to a full development programme. That is a bridge we
will have to cross, hopefully when we do come to it.
He said there would be a fundamental shift in how the
company was set up and what it would need to take it to the next
phase, should the occasion arise. It always has been an option
and we may well reach a time when we want to pass the baton
on to someone else to take it to the next phase. It would be a nice
problem to have, said Mr Lyons. He discounted rumours that
the rig had been buzzed or shadowed by Argentine air force
jets while in transit. Its just gossip, said Mr Lyons who
confirmed that on February 10 an Argentine coastguard aircraft had
flown over the rig on a routine flight, but that there had not been
any other air activity.
Sharon Jaffray

http://www.timesonline.co.uk/tol/news/uk/article7043319.ece

http://www.independent.co.uk/news/world/politics/falklands-offer-to-split-oil-profits-1913021.html

Falklands offer to split oil profits

don't forget that the oil still has to be found and to be in commercially extractable quantities .... for sure the odds are significantly shorter than on wildcat or even "normal" drillings, but considerable risk remains.

the falklands residents etc must also be biting their nails, as they too have invested megabucks in infrastructure and similar on the basis of a positive outcome