Desire Petroleum

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Company Information

Desire Petroleum Plc. (AIM: DES) is a British company founded in 1996 by former geologist, Dr. Colin Phipps, as a part of the hydrocarbon exploration industry. The company’s main headquarters are situated in Malvern, United Kingdom. Its main activity is oil and gas exploration.

Desire Petroleum is present in the northern part of the Falkland Basin where it works to transform the offshore location into a modern hydrocarbon province. The Falkland Basin is in the waters that are north of the Falkland Islands located approximately 250 nautical miles east of the coast of Argentina in the Atlantic Ocean. Here, it has received license for exploration and production purposes.

The exploration license gives the company the right to gather the necessary data about the seabed. The drilling can only go as deep as 350 meters under the seabed for exploration purposes. The license for production refers to the search and extraction of the petroleum.

The drilling license was received in 1997. Afterwards, a test was conducted a year later, in 1998. Its goal in the Falkland Basin is to explore and find commercial reserves of hydrocarbons.

In October 2009, a campaign for exploration purposes was started by the company. This is because Desire Petroleum and Diamond Offshore have signed a contract for the Ocean Guardian – a semi-submersible craft. By the next year, in February, the rig reached the basin and started the drilling process. Until now, the company has finished 2 flow tests, 16 wells and 2 sidetracks.

In 2004, a 3D seismic survey has shown the oil potential of the area. However, after exploring the basin for over 12 years, the company has not found important oil or gas reserves. In the last year, Desire Petroleum has found six dry wells, which lead to a decrease of its share price and disappointment to its shareholders and Board of Directors. However, in the recent months, two new areas fit for drilling have been found. Its recent activities have included the drilling of five wells in the campaign from 2010. Moreover, the company has valid licenses for 2012 and 2013. By 2012, the extensive 3D seismic survey will be completed.

The latest news about Desire Petroleum is that it needs to raise funds for any new drilling campaigns due to the fact that until now, no important and viable reserves have been found. It is hoped that the two new areas found will offer stockholders a bonus.