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

http://www.britishbulls.com/StockPage.asp?CompanyTicker=DES&MarketTicker=RESOURCES&Typ=S

BUY
CONFIRMED

Now lets see that chart go vertical !!!

http://www.smallcapnews.co.uk/article/Desire_Petroleum_buoyed_by_independent_survey_of_main_prospects/7798.aspx

Desire Petroleum buoyed by independent survey of main prospects


05 October 2009

Ahead of a planned drilling campaign on its acreage in the North Falkland Basin early next year, Desire Petroleum has received independent confirmation that it is sitting on more than three billion barrels of unrisked, prospective recoverable resources on its top 10 prospects.

Desire commissioned Senergy to produce the CPR to confirm its views on the prospectivity of the North Falkland Basin and particularly the robustness of its oil and gas prospects. Desire's top ten prospects include Liz, Ann, Alpha, Dawn, Jacinta, Beth, Ninky, Rachel, Helen and Pam.

Senergys found that the mean, gross, unrisked prospective recoverable resources in the ten prospects was over 4.6 billion barrels. The net figure for Desire is three billion barrels.

In turn, the mean, gross, unrisked prospect size ranges from 122 million barrels recoverable (Ninky) to 1,631 million barrels recoverable (Alpha).

It also found that the hydrocarbon type in Desires Southern prospects could be oil or gas but on balance are considered more likely to be oil.

Fourteen different play types have been identified, eight in the north and six in the south, of which, only three were partially tested in the 1998 drilling campaign.

Finally, Senergy concluded that at US$ 50/barrel oil price, the minimum economic threshold was a 56 million barrel recoverable field.

http://www.rns-pdf.londonstockexchange.com/rns/1944A_1-2009-10-2.pdf

Finally, Senergy concluded that at US$ 50/barrel oil price, the minimum economic threshold was a 56 million barrel recoverable field.

to my mind, that is almost the most interesting bit, as i really do not think we will see that low a crude price again, except perhaps as a blip

http://in.reuters.com/article/rbssEnergyNews/idINBNG45875020091008?sp=true

ReutersUPDATE 1
Rockhopper mulls share sale to fund drilling
Thu Oct 8, 2009 1:38pm IST

Considering options including share sale to fund drilling

* Plans to drill at least two wells with Desire Petroleum

* Rockhopper shares fall 4 pct (Adds details)

Oct 8 (Reuters) - North Falkland Basin oil and gas explorer Rockhopper Exploration Plc (RKH.L: Quote, Profile, Research) confirmed on Thursday it was considering various options, including a share sale, to fund its drilling activities.

Responding to media speculation about an equity financing, the company also said it intended to drill a minimum of two wells on its operated acreage, along with partner Desire Petroleum Plc (DES.L: Quote, Profile, Research).

The Financial Times on Wednesday quoted traders as saying Desire Petroleum was looking to raise 50 million pounds ($79.96 million) by selling new shares at 75 pence each, while Rockhopper was planning to raise up to 50 million pounds by selling shares at a price yet to be determined, to help finance their drilling programmes in the Falkland Islands. On Sept. 10, Desire Petroleum signed a contract with Diamond Offshore Drilling (UK) Ltd to secure a rig to drill a minimum of four wells in the Falklands Islands, starting February 2010. Rockhopper shares were down 4 percent at 82 pence, while Desire Petroleum was down 1.8 percent at 98 pence at 0754 GMT on the London Stock Exchange. ($1=.6253 Pound) (Reporting by Kumar Alagappan in Bangalore; Editing by Vinu Pilakkott)

Ocean Guardian

This will be a very active blog early next year....still not in but probably will be in one of the companies by christmas...

Is the DES fundraising for institutional investors only?

Harry from the 10 september RNS Drilling Rig Contract - Letter of Intent


"The Company believes that with a rig becoming active in the North Falkland Basin the Company should endeavour to drill as many wells as possible to test the full potential of this highly prospective area. To this end Desire is investigating with its advisors the best course of action to raise additional funds prior to mobilisation to ensure the area is appraised as widely as possible. It is Desire's intention that shareholders will have the opportunity to participate in the fund raising."

Ah, thanks marky. On that basis though, a dip in the sp to compensate is likely imo. Of course the wording is such that only existing holders will be offered more stock.
I have sometimes found that offering only institutional investors discounted shares seems to have little effect on the sp.

Harry, the last 2 fundraisings one in 2004 and 2005 both were well over subscribed by there loyal share holders and I would expect this time it will be well over subscribed again.

With a spud date of early February and when that rigs sets sail to the Falklands the share price will do exactly as it did in 1998 get higher and higher the closer it gets to the Falklands to drill.

Senergy Report For Desire Reviews Oil and Gas Prospects in the North Falkland Basin
11 October 2009

http://www.oilvoice.com/n/Senergy_Report_For_Desire_Reviews_Oil_and_Gas_Prospects_in_the_North_Falkland_Basin/db3190bd4.aspx

Commenting on the CPR, Stephen Phipps, Chairman of Desire said:

"It is particularly pleasing to have our own work on the prospectivity of the North Falklands Basin, and of our own prospects, endorsed by a well respected independent energy consultant. We look forward with great excitement to the forthcoming drilling campaign."

London Energy Group Presentation

http://www.desireplc.co.uk/images/uploaded/7417407_3778521.pdf

http://business.timesonline.co.uk/tol/business/markets/article6872043.ece#

Tiddler to watch

Desire Petroleum fell 2p to 97p but will be worth keeping an eye on over the next few weeks. The oil and gas explorers management are currently touring the City in an attempt to drum up support for a fundraising of between 30 million and 50 million to finance a drilling programme in the Falkland Islands.

others are much cleverer than i at these things - not difficult it's true - but if you fancy a dabble in falklands oilies, then DES would look to be the obvious choice (rather than FOGL or RKH to pick other obvious contenders)

for sure any fund raising will be dilutory(?), but if sp falls to about 85 (see chart), then that would look a reasonable entry point on the assumption that PIs will also get a look-in on the fund raising

http://proactiveinvestors.co.uk/columns/investment_insights/507/is-britain-about-to-become-the-new-kuwait-0507.html

Is Britain about to become the new Kuwait?

I see Desire is down 3% when there have been 923,00 buys against 240,00sells

Cynic surley RKH is the bargain of all the Falklands oilys with a smallest market cap of them all and great prospects.

marky

dont bring in common sense, lol

Financially RKH are running on fresh air in the tanks so w1ll have to dilute a lot more than DES who are more robust with $40mn+ in the Bank already.

RKH have 80.51m shares in issue and a market cap of 67 million and about 6 mill in bank

DES have 230 mill shares in issue and a market cap of 213 million and about $40 mill in bank

Both are sharing a rig both have large prospect but Desire has the best and most and they both are in shallow water to drill and both of them are hoping to raise additional funds so they can drill as many holes while the rigs is down there.

RKH have a lot of cash shortfall to make up with DES...20m more will do DES

Rig update!!!!

http://www.diamondoffshore.com/ourFleet/rigStatus.php