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

DES article in the telegraph
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Falkland Islands oil is back in the frame, with shares in Desire Petroleum quadrupling this year and Falkland Oil and Gas also listing on Aim. High oil prices have invigorated frontier exploration and hopes run high.

Experienced players will recall the 1998 excitement about Desire, whose shares rocketed and then fell like a stone when drilling revealed that the oil had "migrated".

A distinction between investors and speculators is that investors regard drilling as the only proof, while speculators know there are trading profits to be made from anticipation. As an enterprising investor, I am willing to back exploration but I prefer a company to have sound cash flows from production too. Stances on these shares often boil down to your risk appetite.

Desire soared from 9p to 37p (now 25p) on speculation about the value of seismic data. Desire is re-appraising acreage to the north of the islands: whilst this is at an early stage "a number of significant prospects are emerging". This is still much too speculative for me.

Funding the Falklands

Falkland Oil targets a large area to the south and east, which has a different geology. Instead of potential elephants (industry-speak for very big finds) the talk is of whales.

Aim-listed Hardman Resources and Global Petroleum of Australia, are industry partners, and Falkland Oil owns 77.5 per cent of seven licences. Eight large prospects are each understood to have potential reserves of 200m to 600m barrels. Punters should consider the prospectus, especially its risk factors, when it is published this week. See www.fogl.co.uk or phone 020 7418 8900.

Funding is in place for seismic tests later this year; then up to 8.4m of funds currently being raised will be used for further tests next year. You can see from Desire's share price how such "results", or anticipation of them, can be enough to spark speculation. Falkland Oil has every incentive to impress the market, as it will need to raise substantial funds to drill from late 2006.

So Falkland Oil is tapping investors for cash quite early in its industrial programme. A timeframe of six months to a year before drilling could have been easier to sustain speculative interest. In terms of market risk, it is possible that some players in the shares will decide to take a profit (or loss) if they sense more excitement elsewhere.

My approach to risk and reward tells me to wait until the prospect firms up, though it is possible that I might miss a party in the shares well before then. As a careful investor, I am also mindful that whales also tend to migrate.

Demand on this over-crowded island will always ensure a property price premium | Funding the Falklands

Nice one markymar, will get some price targets together for October in next couple of days and post on iii.
Happy hunting mate
JPDM FM

is there a date set for the launching of FOGL in AIM?

Ask Peel Hunt the nominated brokers they may tell you. +/- 14Oct

I'm getting a bad feeling about this one. Have I bought into an old dog?

MS

MS

Same here! I thought my top-up was at a low price and even thats languishing!

Need to reduce my losses somehow on back of this one. I'm definitely selling if it dips to 20p. I may even get out sooner. I dumped JKX the other day at a substantial loss and bought PET, which today has been up 25%. I just wonder if other investors have dumped DES for PET and that why we have the fall we have seen today. I may do the same.

Salkeldjp

I'm exactly like you on this one. Hold SEY and Burren and feel comfortable with them. As for DES I'm getting cold feet. It's my own fault carrying quite a large loss and will have to try and recoupe some how. Dam Shares Mag I think I will invoice them for my losses as I bought on their tip. I know hide behind the disclaimer.

MS

PS Big boys don't cry, feel like it though.

MS

Sounds like you did the same as me! Bought on Shares mag tip and we have both got burnt! Last time I buy shares like this without being sure that they will carry on going up! (I've got BUR too! What a cracker this one is!) I guess we have to put losses in DES down to experience. Its a shame the lesson comes after the cost!

Salkeldjp

How right you are. I did'nt want to go on holiday anyway. GF is pushing SIA, what do you think. Might have to reply on his posting or we'll get told off by the pro's.

MS

Micky and Sal after reading your post's there seams a lot of gllom in your post's so a post caught my eye on iii boards and thought i would post it here as it hit's the nail on the head.

Gismoe post:

When you really think about it FOG, are asking 40p per share, just to do the survey with nothing concrete at all, to go on and that alone makes it a very high risk speculative punt.
Therefore, with 2D and 3D surveys all ready to hand, it makes DES look pretty cheap at the moment does it not? Every one is sounding so negative at the moment, where has that great British fighting spirit and belief gone. Nothing has changed whatsoever, DES is in my opinion in a far more advanced state to bring forth the goods. To my belief therefore the only thing that is winding people up is the lack of any news. There is a very old fashioned saying "That no news is good news" to back that statement up, I would ask, why people are still buying if it is that uncertain. Until we hear otherwise, and it might not be until the new year, I am quite happy to stay invested.
For those of you that watched the program on TV last night about the oil in Alaska, it was to my mind a very good example of just what any company going into the Falklands face. The enviromental issues have to be considered as a priority and without repeating previous posts, the biggest hurdle to cross is the political one. Can you imagine the indignation that would present itself if US rigs turn up on the ARgy doorstep and turn on the taps. I would in all honesty say these issues are the important ones at this moment in time, not whether the black stuff is there. This share could be worth 10p by christmas on no news, and in the new year 2p but it could also be 2. Those of a nervous disposition are better to get out, but if you do not hold, please if you sell, don't keep posting negatives.
Fingers crossed, if it drops lower I shall be definately adding some more to my portfolio, I am feeling as positve as when I first bought in, just perhaps a trifle more patient.

Could be a leak coming in that so called tour?

marky,

As you imply "Patience is a virtue" and today was expected, its doing the
obvious....Going Up....I think the politics have already been sorted,and the
good news has just to be posted.

Possible next board meeting to be first Monday of the month, that would be Monday so could expect maybe some news on so called tour

I'm not in this 1 but hey UP 37% so far today!

what was the tour above?

Disney Land & Disney World

Feeling a lot better today will hang in untill next year. News flow is important and when you go a couple of weeks with nothing except a drop in price then it's only to be expected that you question your own judgement.
It's only too easy to get it wrong which we all have at some time unless your really astute or in the know. Caught a real cold with MSY, out of circulation when it dropped so couldn't do anything about it and no stop losses, what a idiot!

MS

Capt can you send any grapevine ? or me email u know how to set up on above ? "doodlebugger's" grapevine.
Red poppies and a good brown ale

markymar sent you an e-mail.
OK?