The U.K. company, listed on the Alternative Investment Market, said it raised $36 million through pound sterling share placements to enable it to continue with scientific research and identify more lucrative oil deposits than those previously drilled.

So far Desire has been less successful than Rockhopper in locating hydrocarbons that will give its shareholders much needed returns on their investments.

The frenetic quest for oil in the North Falkland Basin in the South Atlantic waters east of South American mainland began last year amid predictions the deep-water reserves could rival those in the North Sea or even some reserves in Saudi Arabia.

The results so far have been modest but haven't calmed Argentina, which claims the British Overseas Territory is London's colonial outpost and Buenos Aires is the rightful owner. Bearing the same claim, an Argentine military junta invaded the islands in 1982 but was beaten back, with the loss of more than 1,000 lives.

Despite a formal surrender to the British military, Argentina didn't relinquish the claim pursued by its defeated dictators and launched a vigorous international campaign to oppose the islands' current status as a British Overseas Territory.

Argentina's claim has had mixed results on the diplomatic front. Argentine President Cristina Fernandez de Kirchner launched further tirades against Britain and the United Nations last week -- the latter for continuing to insist the dispute needs to be resolved bilaterally by Argentina and Britain.

Desire Petroleum was unfazed by the latest Argentine pronouncements at the United Nations. The company said it would use the additional funds to acquire and process further 3-D seismic images of sea waters under its license, on the east flank of the North Falkland Basin, in Tranches D and F.

Another British company active in the area, Rockhopper Exploration, made what it considers a significant discovery of hydrocarbons called Sea Lion earlier this year.

Since that discovery, Desire has hinted it wants to concentrate on identifying prospects in the same play type as Sea Lion and has outlined a fan sandstone play fairway in the eastern flank.

The fan sandstones can only be fully identified in 3-D data and currently Desire has 3-D coverage for only half of this fairway on its acreage, the company said in a news release.

"Desire believes that it is essential that it acquires and processes new 3D seismic data as quickly as possible in order to fully understand the potential of this play," it said.

The company said it had received tenders for a 3-D seismic survey and intended to award a contract in the near future. The company is also in contact with other oil operators in the North Falklands Basin to mount a joint seismic program.

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