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

Now wait till RAF r up to opp strength and of course a rig and as Rod says we'll be sailing

i know its early days.....anyone got an idea how far up desire could sail....i am thinking of toping up before it makes serious progress with rigs etc etc

hlyeo98 - 03 Jul 2008 13:10 - 2885 of 2908
Desire Petroleum is much too overvalued...it should be in the region of 20-30p only.

lol what a wally!!!

also halifax comment about just wind etc

thought there would be more comments on des today on this as this news removes a lot of the rumours on no news. good to see added acreage too

must be HUGE EMBARASSMENT TO DANIEL STEWART !!!! will they have any customers left by now anyway such is their woeful advice........one of their best advice was you have to drill to find oil.....fantastic!

I see Daniel steward have changed there stance on Desire am not to sure if this has been made official to Joe public but I have been given this by someone with in there ranks.

Price Review

Still cannot attach firm values and using Estimated Monetary Value (EMV) techniques is not appropriate, principally due to small companies not having the ability to add value across their entire asset bases in a timely or cost effective manner.

Without doubt this is an excellent deal from Desires perspective, Arcadia has connections to excellent O&G resources, so much so that we are amazed that it has not demanded operatorship. Even with this excellent deal we feel Desire is still a little bit over priced and note there is no more real event driven news until we get a date for drilling, as such we change our recommendation to HOLD and change our price to 60p based on the zero cost nature of the farm out but being fully aware that cash is still to be spent on the 2 Desire wells, clearly the next piece of news has to be a drilling date, but experience has shown this could be a considerable period.

For Rockhopper this is also positive news as it means they will be involved in a well if they of course exercise the option, although it will reduce its already low cash reserves. We await further news on its own acreage, and its intention to fulfill the farm in to Desires acreage. We change our recommendation to Hold and a 50p target.

Positive development, good partner with limited E&P experience but the right connections. Critically, we await definitive news on an indented drilling schedule.

Rockhopper (RKH.L) HOLD 50p (from SELL 40p)
Desire (DES.L) HOLD 60p (from Sell 40p)

lol.......its obvious daniel stewart know nothing about oil industry.

who r the cretins they employ......guys like tim heeley....sounds like a thick mick to me.
rig is most important news.....not drill date.......jes, they do get ahead of themselves daniel stewart.......arcadia will be good to get rig though......and i imagine they will have drill schedules set up depending on timing of rig.

also, rkh mentioned 2009 but des will be before rkh.........prev experience means damn all as market deals in future not in past........u just gota laugh at daniel stewart etc......wheres halifax and his wind

i dont think some of their clients will be pleased to read todays news if client sold cos of daniel stewart recommendation when sp hit 55p.........i imagine they must be getting lots of irate phone calls today........any more news like this and daniel stewart might need to get a real job in life

SHARES MAGAZINE

Sector Report:
Buy ICAP -- Tullett Prebon -- London Capital
Sell Blue Oar -- Cenkos Securities -- Daniel Stewart.

oh dear.....poor daniel stewart......any less in sp and it will be gone

Also daniel stewart clients must love the way they wait for things to happen then recommend surely people pay idiots like them to give them the heads up?

I mean you don't have to be a brain surgeon to see this is a buy now - you only have to read the RNS

Also daniel stewart clients must love the way they wait for things to happen then recommend surely people pay idiots like them to give them the heads up?

I mean you don't have to be a brain surgeon to see this is a buy now - you only have to read the RNS

http://www.oilbarrel.com/home.html

15.08.2008
Desire Petroleum Confirms Partner For Falklands Drilling But No Firm Dates Yet
It has been quite some time now since we last featured AIM-quoted explorer Desire Petroleum, a company seeking to prise open the largely untested hydrocarbons potential of the Falkland Islands.

Ten years have now passed since it first made moves into the South Atlantic, where it now boasts five exploration licences (Tranches C, D, F, I and L). It has just been awarded a fresh plot of acreage adjacent to its existing Tranche I in the North Falklands Basin, an area roughly half the size of Texas.

Investors have needed to be patient. Despite some intriguing prospects this remains virgin territory. One of the problems facing Desire Petroleum at the time of our last coverage note, in June 2007, was the shortage of those two vital components to mount a successful drilling offensive, namely cash (and lots of it) and access to a rig.

News from the Desire camp this week suggests progress on both fronts. Approval has been granted for the February 2008 farm-in by Arcadia Petroleum, a deal which could finally test some of the multiple prospects Desire has accumulated.

Under this agreement, Arcadia will drill and test the Ann prospect paying 85 per cent of the costs to earn a 35 per cent interest in a sub-area of Tranche C, which includes the Ann and Orca South prospects.

As part of another transaction, existing partner Rockhopper Exploration is responsible for paying the remaining 15 per cent of the Ann well costs to earn a 7.5 per cent interest in Tranches C and D.

It lands Desire Petroleum with a net 57.5 per cent interest in the Ann prospect which has mid-estimate recoverable reserves potential of 202 million barrels of oil.

With our new partner on board we are now in a far stronger position to pursue actively all available rig opportunities for drilling our prospects, says chairman Stephen Phipps. No details on timings were released however.

In Tranche I, Arcadia will also drill and test a new gas prospect named Alpha, paying 100 per cent of the costs to earn 50 per cent in Block 25/10 and part of Block 25/15. This prospect also extends into the newly awarded Blocks 25/8, 25/9 and 25/14b where Arcadia has an 80 per cent interest and Desire 20 per cent.

According to Desire, Alpha is a large, well-defined, structural closure, covering an area of over 300 sq km. Its mid-estimate for potential recoverable reserves is no less than 7.8 trillion cubic feet (Tcf) with 15 Tcf in the upside case, huge volumes by any measure, though of course, utterly unproven until drilled. Based on current mapping, Desire holds an approximate 30 per cent share in the Alpha prospect.

Phipps calls it a major exploration play in the North Falkland Basin. We are excited about the new exploration gas play and the large potential of the Alpha prospect. Arcadia will also pay the mobilisation and demobilisation costs associated with the two wells.

Significantly, Desire also appears better equipped to tackle some its other prospects, but going it alone. The majority of the prospects in the Desire inventory are still held 100 per cent by Desire and with the funds currently available and at current rig rates we are able to drill two of these for our own account, says Phipps.

This is bullish talk considering that further farm-ins were on the cards earlier this year when the company first disclosed the Arcadia transaction. Desire has not yet indicated which of its prospects it will target first though it has plenty to choose from.

While this is a very remote area, the waters here are not especially deep, which means operators can use standard semi-submersibles rather than bring in state-of-the-art and er expensive deepwater drillships.

Other believers in the Falklands offshore story, such as Falkland Oil & Gas, are not far off drilling either, though again dates remain vague. This company roped in BHP Billiton last year to sink a couple of wells, which are now planned for 2009.

To date, just a handful of wells have been drilled in the North Falkland Basin, about a decade ago, with most encountering hydrocarbons. Fast forward 10 years, and with oil prices turned on their heads, this is an area than can no longer be ignored. Certainly with talk of 15 Tcf gas prospects it is high time to take the plunge with the drill bit.

Halifax is quiet he must have his head in a lady bird book or has the pin dropped and he has just worked out what a cracking deal Desire have made and not given half the prospects away to drill 2 holes like FOGL.

The lights on but dim

Desire remains a jam tomorrow/pie in the sky share as long as they dont have a rig/drilling program,they are riding on FOGL's shirttails following their agreement with BHPBLT.I doubt Arcadia has the financial muscle to finance an extended drilling program whereas the Aussies have real financial strength and experience in drilling. It would of course be far more sensible for all to pool resources as their are likely to be drilling disappointments as has happened in the past.

Thanks for the kind words marky so adult as usual.

The pin has still not dropped yet has it Halifax,here is a little help!

Acadia who are the farm in partner are owned by this man

John Fredriksen, (born 11. Mai 1944) is an oil tanker and shipping tycoon, owner of the world's largest oil tanker fleet, and was Norway's richest man until he chose to abandon his Norwegian citizenship and take up a Cypriot passport.[1] Norwegian magazine Kapital listed Fredriksen in 2007 with a net worth of NOK 55.5 billion ($11 billion USD). Through his investment companies Hemen Holdings and Meisha, Fredriksen controls the companies Frontline and Golar LNG from his 100 million Chelsea home in London. He also has major interests in the oil rig operator SeaDrill, the fish farming company Marine Harvest and the dry bulk company Golden Ocean Group. Fredriksen also recently announced that he through acquisitions and options and secured 9,6% of the worlds largest shipholding company Overseas Shipholding Group.

27 rigs he owns and 16 new builds on the way

http://seekingalpha.com/article/87340-seadrill-finding-gold-in-an-oil-driller

Marky how much does he owe the banks, remember Robert Maxwell? Rich lists are not worth the paper they are written on, just figments of journos imagination, everybody has two sides to their individual balance sheets, whatever happened to Asil Nadir by the way?

Very static today,and quite boring to see no activity after yesterdays surge and now back to where the price should be,hoping for a turn around soon.

Halifax i think the lady bird books are to advanced for you after reading that reply.

Telegraph comment:

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/08/15/cxmktrep115.xml


Desire Petroleum, an oil explorer in the north basin of the Falkland Islands, rose 8 to 83p. Further to its announcement in February, it unveiled the terms of its agreement with private energy business Arcadia Petroleum.

Arcadia will pay the bulk of the costs of drilling two wells in the "Ann" prospect and Desire will maintain a 57.5pc interest in the field. Both companies have also been awarded new space in another prospect, the 300 sq km "Alpha", which is potentially one of the biggest gas fields in the Southern Hemisphere.

Landsbanki Securities said final details on the Desire farm-out agreement "moves exploration of the North Falklands Basin forward significantly, firming up four wells out of a six-well programme".

The broker said Rockhopper Exploration, which has a 15pc stake in the Ann prospect, also stands to benefit from the deal. Landsbanki said share prices in both Rockhopper and Desire should "recover strongly" following yesterday's news. Rockhopper jumped 7 to 66p.

marky which year will drilling start......2009......2010..... 2011..... do you know? Until then nothing has changed and even then the chances of finding oil or gas are as remote as ever. When a major like BHP/BLT turns up then the real action will start.

They said at the AGM that they hoped by the end of this year start or early next year.

You must have trouble reading statments as if you read the RNS yesterday it stated

"Rockhopper Exploration plc, as part of a larger transaction, is responsible for paying
the remaining 15% of the Ann well costs to earn
a 7.5% interest in Tranches C and D. Accordingly, the net result to Desire will be a 57.5%
interest in the Ann prospect for which the
Desire mid-estimate of potential recoverable reserves is 202 million barrels of oil. Following
AVO studies in 2007 Desire now estimates the
chance of success on this prospect at 50%, which is the chance of the prospect containing
hydrocarbons."

EG50%=Evens drill 6 holes 3 holes should hit oil

Now i dont know what you dont understand but if u dont understand it i will get my 9 year old son to explain it to you.


Have BHP given FOGL a date?

Can you tell me 5 of FOGL prospects and what they hold?

2 simple question for you to answer

Markymar - I would waste your time on Halifax.

He is only on this thread to goad and disrupt.

The only meaningful information to be posted on this thread has come from you.

Has anyone seen a meaningful range of price estimates both pre and post drilling?

Last time we of course hit over 4 pre-drilling with a much lower oil price (yes I remember that time) but I sense a reluctance to send the shares higher pre-drill this time around?