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

UK smallcaps UK smallcaps news


11:31GMT 06Nov2009-Desire Petroleum, Rockhopper up on IC tip

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Shares in Falklands oil and gas explorer Desire Petroleum and its partner Rockhopper rise by 4.3 and 5.2 percent respectively after comment in the Investors Chronicle sparks investor support for oil companies with assets in the region.

'There's a mention in the Investors Chronicle and Rockhopper, Desire Petroleum and Borders & Southern Petroleum (up 2.4 pct) are all getting pulled up as a sector move,' a trader says.

'Access to the area has always been a problem in the past and it looks like they (Desire and its partners Rockhopper) managed to get a rig out there which opens it up a lot,' he says.

FROM III

Just been informed that rig will not be leaving the Queens dock on Monday. Anchor chains are still on the dock. Diamond want to keep the rig alongside for as long as possible before departure on the 24th. This is to make it logistically easier to carry out remaining work and load up! Transocean do want a rig in her mooring so she may have to move out before the 24th but it won't be Monday. The route from Invergordon to Las Palmas has not yet been decided.

doh!
turn left out of the harbour, or you'll run aground .... turn right when you find the open sea and keep heading south ...... turn right again at dover etc etc etc .... it's a much more enjoyable route than turning left at the open sea and going via the western isles in mid-winter!

Trawlling through various charts this morning I stumbled upon this cracker of a cup and handle chart pattern. Should at least lead to a return to the recent high of 110p and maybe a lot more. Broker forecasts also support the TA angle here.

One of the most potent TA patterns to be found.



Heres an explanation/details of the pattern....

http://www.investopedia.com/terms/c/cupandhandle.asp

Forgot to add the Broker recos for des Desire Petroleum on previous post....

New buy slapped on friday by Oriel.......

Desire Petroleum PLC

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Oriel Securities
06-11-09 BUY

Seymour Pierce
23-10-09 BUY -0.30 -0.30

http://www.ft.com/cms/s/0/a112916a-9dcd-11de-8de8-00144feabdc0.html?catid=8&SID=google

SMALL CAPS: Falklands hopes lift Desire

Desire Petroleum surged on Thursday after the energy explorer became the first to secure a rig to drill on the Falklands Islands since 1998, write Miles Johnson and Neil Hume.

The news sparked buying of other Falklands-based explorers, including Desires partner Rockhopper up 51 per cent to 58.5p and Borders & Southern, which rose 18.4 per cent to 58p.

Securing a rig has been the key to near-term share price performance and this is very good news, said Seymour Pierce. While a clearer view on valuation awaits well results, we believe the shares will perform well ahead of the drilling campaign.

Oriel, meanwhile, argued the news was positive for all Falklands explorers, noting that the other companies could use the same rig as Desire while it was in the area. Desire shares closed 39.5 per cent higher at 90p.

Business Financial Newswire
"Falklands oil and gas explorer Desire Petroleum plans to launch an open offer as soon as possible.

This follows its 42m placing, approved by shareholders today.

Documentation for the open offer is currently being finalised. "

Growth company investor.....November 2009



http://209.85.229.132/search?q=cache:X7jfwB20vkAJ:content.yudu.com/Library/A1i4jw/GCiNov/resources/15.htm+desire+petroleum+oriel&cd=5&hl=en&ct=clnk&gl=uk

post taken from Fadilz who tryed to get to EGM

Frustratingly, I got stuck in traffic, so just missed the EGM yesterday, but did manage to speak to Ian Duncan after the meeting had finished. Nothing earth-shattering, but reassurance on some key points.

- They will release a list of targets ahead of the campaign, though this may be adapted in the light of results. There are at least 15 prospects to choose from.
- They intend to test any finds, and 'do a thorough job'
- Aim is to maximise shareholder value quickly - so it's prove and sell, not production. This may need an extended campaign / second round of drilling.
- News management: they are debating how frequently to update shareholders - along the lines of should it be weekly, etc. I sense they will lean towards transparency - announcements on spudding, TD, etc are the minimum we can expect. Question also of how much technical detail to release (risk of confusing people).
- They are not dependent on RKH participation to extend number of holes drilled in C/D.
- I tried to get him to give a feel for which wells might be particularly indicative, and about the southern source rocks, if any - but he was reluctant to be drawn. I did however sense that we might think of 3 broad groupings: Eastern margin, Western margin, and the sourhern prospects. Success in Ernest would be encouraging for the south. Gas or oil possible in Alpha - needs drilling.
- No direct answer on whether FIG limit number of rigs - could interpret his answer either way. FOGL/BOR v unlikely to drill during DES campaign, and even if they start Q4, it would not be long to wait for them to finish, and there would be no problem in getting a new rig for appraisal drilling, if oil is found in NFB.


Re EB's post and bunce(my opinion now): it seems the placing takes us to 6 DES holes, inlcuding testing, or perhaps 7-8 without (hope not). So the OO is about taking us to 8 drills, with the chance to test. So full take up is a good thing. IMO.

more as an interesting aside, we are seeing a sudden and fairly significant increase in off-shore activity and general well-development ..... an educated guess is that this is because, due to the continued strength of crude, Aramco have now extracted a digit .... although that relates to activity in Saudi, there is a definite "ripple effect" ..... with that in mind, also worth taking note of companies like LAM

http://www.offshore-mag.com/index/article-display/6412356780/articles/offshore/volume-69/issue-11/frontier-exploration/falklands-drilling.html

Falklands drilling program to test new play types, deeper objectives

http://news.bbc.co.uk/1/hi/scotland/highlands_and_islands/8373823.stm


Tug to haul North Sea rig to the Falkland islands

Markymar,

Thanks. Two very interesting reads.

Just an update on the OG's tow. The Maersk Traveller will be towing the rig and is most likely to stay with her while she is down in the Falklands. She has left Aberdeen now and will soon be underway to Invergordon.


http://www.shipais.com/showship.php?mmsi=220591000

She'll be down there for 2 years then.....so much drilling to be done.

http://www.thisislondon.co.uk/standard-business/article-23775621-falklands-factor-pulls-in-city-cash-bonanza.do

Falklands factor pulls in City cash bonanza

The City is pouring money into the Falklands today in two fundraisers, as the wind-swept British islands in the South Atlantic are targeted as one of the last great unconquered oil and gas frontiers.

The amount of divvied up to Falklands offshore prospectors in the last month alone now tops 250 million.

Borders & Southern Petroleum today said it is raising 113 million from a placing of shares at 50p. They were 4p dearer today at 59p.

Falkland Oil & Gas (FOGL), which is prospecting in the same basin south of the islands, said it is raising 50 million from a placing priced at 115p. Its stock was 6p cheaper at 130p.

Funds are being raised to get rigs down to the South Atlantic to start drilling next year.

The placings follow 92 million raised last month by Rockhopper Exploration and Desire Petroleum which have both identified prospects in the islands' north basin, reckoned to potentially hold 3 billion barrels.

FOGL said today it needs an anchored rig to start drilling 90 miles south of the islands' capital, Port Stanley, in sea depths of nearly half a mile.

Investors will be keeping a sharp eye on the results from Desire, which will be the first to drill next year, but analyst Richard Griffiths at Evolution cautioned: "The north and south of the Falklands are as different as the North Sea and

"are as different as the North Sea and....................." WHAT????? Chips????

Oil and water...?

the Mediterranean." sorry harry!!!!

Great news today for all the Falklands oilys and great news for Desire as demob costs are shared by 2 more players and that leaves more money for Desire to maybe sink more holes which gives us better chances of success.

I can't see them drilling anything until 2011 because DES and RKH have got their hands full with at least half a dozen wells between them perhaps more.....boy ! what with the world cup and drilling down there next year ....exciting times ahead !...Desire might benefit the most because they have the rig....so 20% production to DES for the use of the slot for the rig....could be something like that coming....should help the sp no end .....but the South Falkland drilling in deep water is a long way off.