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

Let's hope the rise continues.

Capt did you get the direct mail sent a few mins ago.

info[did you get the address?].com

info[snip]com is me

OK got it

bowman ref post 361
can you reply as to source of info ref partner with repsol and shell

regards HUSTLER.

Hello Chaps!
Thought I'd drop in to see where you've all been off too.

Looks as though the price is steadying this morning. I was hoping that guardian article would have added to the impetus, by implication it seems the farm in is done & dusted.
Marky, any word on L&C.
Regards
Jon

Desire Petroleum PLC
15 December 2004


Desire Petroleum plc

('Desire' or 'the Company')

Press Comment

The Board of Desire notes the recent rise in the Company's share price and press
comment that the Company may enter into a farm-out agreement and that it is
considering conducting a fundraising.

The Board can confirm that it is considering all the alternatives available to
Desire to commence an exploration drilling programme in the North Falklands
Basin and, as previously announced, Desire is in discussion with a number of
companies which may wish to participate in such a programme.

An announcement will be made in due course if and when the Company decides to
conduct a fundraising and/or an agreement is concluded with another company.

For further information contact:

Dr Colin B. Phipps (01684 892242)

Mr Stephen Phipps (020 7409 2138)

SWW, can you tell me why the SP is in the red, is this negative news???

They mentioned "......it is considering conducting a fundraising"

Without qualifying the remark, the inference is a share placing. Of course they could go to a bank, or sell the farm out agreements.

I know that is not all bad news, bearing in mind the potetial earnings, but look at what happened to SEY in a similar position, even after the placing.

No need to panic till it becomes clear, even then probably no need to worry.

cheers for that SWW

Hi all

It looks like the market didn't know which way to take the press release. I suppose there are lots of investors with different views on which way DES should go. Either way DES will be drilling for oil & gas. DES may not want to take the first offers from farm out partners as the return to its investors my not be as attractive. It must be difficult to come to a decision, as we all want to hear the rigs are ready to drill. But we all want the best return for our money. The announcment will only test the market for support, which i'm sure the support is there.

Any thoughts ?

Good Luck All

Eddie

Desire Petroleum in talks with potential participants for Falklands drilling
AFX


LONDON (AFX) - Desire Petroleum PLC said it is in talks with a number of potential participants with a view to exploration drilling in the North Falkland Basin.

The comments follow press reports saying Desire was considering entering into a farm-out agreement as well as looking at a fundraising.

'The board can confirm that it is considering all the alternatives available to Desire to commence an exploration drilling programme in the North Falklands Basin and, as previously announced, Desire is in discussion with a number of companies which may wish to participate in such a programme,' the company said.

bam

It would be good if Desire got major institutional support to fund the drilling along with a placing & offer for the long suffering share holders like myself. Maybe this is one of the options Desire are discussing at present, along with the farm-in option ?


Who knows, we certainly aren't privy but it would be good for DES to do a fund raising and go it alone, IMHO.

The directors have a lot of faith in the work they have done. They are old and very experienced hands.
A free carry on a drill test program would inevitably lead to a massive dilution of their interest. They are probably testing the water as to Institutional interest in financing their own program and/or part financing a program to be undertaken by a major. If you really believe in what you've got, that would be the logical course.
Des shareholders can be comforted by the fact that the Directors have that self belief and don't intend to sell out cheaply. In their case, they would still be very wealthy if they did. Good on them for sticking to their guns.

Iturama I agree totally. A placing is clearly dilutive and might be interpreted as a failure to agree terms on a farm-in but as the price didn't fall on the rumour and only drifted a couple of pence after the RNS I think the discussions of a placing is more likely a reflection on the confidence of the directors that this is a winner and the deals on the table from the majors are not enticing enough. A few weeks ago I thought an attempt by Desire to raise it's own funds would cause the price to half, it clearly hasn't-why not-there must be some good data in that 3D. Given that the most pessimistic forecast I've seen on future oil prices (Browns) is a return to $30 I hope a major will now turn around and offer a juicy % to Desire. If Phipps is reading this then please don't be stubborn and hold out for 50%, we small shareholders will still be pleased with you if you settle for 49%.

Yes, this could all turn around quite quickly.