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

So, in summary to all of the above posts, can I assume then that whichever position you hold, you are either going to win or lose depending on the result of the first drill. There is therefore no hedging position?
Also to re-iterate a broker's summary of the risks (can't find the exact ref atm, but will persevere) the likelihood of success of the first well hitting a commercially viable reservoir is approx 20%. That's not to say that if the first well is a duster, then we all pack up & go home. But 50% probability is ludicrous, imo.

pretty much that harry ...... the idea of hedging with a short + guaranteed stop is great, but the reality is 99% certain to be uneconomical ...... shorting as a hedge without the guaranteed stop is just dumb ..... whatever one's view, basic prudence is to ensure that you can afford to lose perhaps 50/75% of your stake in the event that the first hole is a dud.

imo, the result from this first well will set the sentiment for all minnow-shares operating in the region for quite some time ..... that said, should this first hole be just that, then it is a racing certainty that there will be an over-reaction as packs of lemmings hurtle over the cliff ..... there will then come a point where an excellent trading opportunity will present - or an opportunity to buy on the cheap for long(er) term.

DES will be very well aware of the importance of this first attempt, and as i posted some time back, i think they will have chosen the most promising site for this ..... but that does not mean they have got it right, as the history of drilling for oil regularly reminds us.

We may not get an update if the first target is dry.....and might be a late one on the follow up......but the chances are high that during this year Desire Petroleum will come up with the goods !.

TheFrenchConnection when i was told from crew member that the last shell well was free flowing oil to the surface and had to be capped i bought in at 1.47p.....oil was $12 a barrel and shell never tested the well and walked away.Over the years i have bought in and the lowest was at 7.8p so i have a significant holding in Desire and could walk away now and have made enough money to change my life.

Its not about if oil is found its when and how much!!!!

Liz if comes up trumps could put 6 on the share price if duster like halifax would like to point out then the share price will fall....but i hope they carry on drilling in to Beth which if oil found will put a 5 on the share price.
Possible share price of 10 from one drill.......down side both dusters and the share price falls to 40p........massive scenarios and both life changing.

Whats interesting is that both these prospect will be drilled and evaluated and they have at least 3 months to examine all the data and then decide where to drill next, what they will learn from drilling these 2 prospects will hopefully lead us to drill the next successful target.

Halifax i think you have a little understanding of how big this drilling campaign is as the oil rig will be possibly there for a year drilling and testing different plays and this share in a years time will be 10p or 20+ a share.

When oil if found in commercial quantities then there is a proven petroleum system then all prospect will get a price put on them regardless if they have not be drilled.....Desire are shouting 3.5 billion barrels on the 10 prospects in there acreage........they have a lot more than 10 prospects.

cynic glad you like our idea of shorting with a guaranteed stop but as we stated in 3842 only if you can get one, DES is likely to move up or down swiftly and violently as soon as drilling results are known, if like us you are long then try to get as much protection as possible.(by the way IG won't do it.) The question of the cost of controlled risk premium is relevant where a sp is likely to be less volatile than expected in this case.

marky we hope you are right!

my holding is sufficient if lots of oil is found, and not so large that i'll jump off a bridge if this first well is a dud .... after the result is announced (RF - don't be so silly! ... an rns will be obligatory), a new game will start

halifax - no one but no one is going to offer a modest enough premium for a guaranteed stop to make such an exercise worthwhile.

Mr.C ..The Albert Bridge perhaps ? Then i wont have too far to walk and watch with glee.,,,,,,.:-)) ..,,,and in full colourful golfing attire/ uniform if you would; thearby maximising visibility for the multitudes of observers. :-)) ..........Marky- Hopefully you walk away with a sackfull of crisp 50,s old bean - lts been a long patient wait for you personally. By my calcs you must have at least been in since 2004 (> A Simple notion > ....even if first well is non commercial and s/p is given a right larruping DES simply move onto next well and as mr.c states a new game will start and PERHAPS with reward ratio being so high momentum will carry it back to current anticapatory level.. lts certainly not a one trick pony .................

TFC never mind the BS most of us are concerned about how the sp will behave up to and after the news of results of the first well drilled..... we hope we won't be well drilled!

While not being a holder in DES i do have a floatation priced position in FOGL and am therefore indirectly effected ........Come on Now !!.... YOU MUST know how s/p will behave lNITIALLY, and i underscore the word INITIALLY, if first well is a duster/ non viable when the stop losses and lemmings come into play and mms come into their own !!!... ! sincerely hope, of course, it wont be neg, news..... But if it is you must know - commercial payload and it doubles/ A duster and what with typical market over-reaction ,it could easily halve ( Prob be a decent entry point -only jesting ). DES has never been an easy ride.Whether it be a single year or 10 year chart its like a a map of the himalayas

TheFrenchConnection i became a share holder back in 1998....

Marky, I am sure others have mentioned it in previous posts & I am not trying to preach to you, but you are extremely exposed to losing much of your substantial profit if the first one is a duster, regardless of subsequent drilling & testing. Having been the premier researcher here & probably most loyal shareholder, it would be a real shame to lose your 'life changing profit'.

Harry hes a big boy leave him alone.

Nothing personal but you did this once to me aswell.

If its a duster its a bleeding duster........ fair does.

Your a good chap but you get overly concerned with others well being. Please drop it.

cheers.

Bet cyners has a double on here.

He knows what I mean.

At this stage its probably better to be in RKH. They are the next ones drilling.

Therefore, success at DES will have big upside on sentiment for RKH, however, RKH although it will fall on DES failure, will then become the focus of the next drill in its own right.

Therefore, for a less risky play, certainly RKH is now the one, less upside but also less downside on DES success/failure.......and then of course its own drill is next up.

IMO.

Well worked out Proselenes......2 targets at the moment with the same drillbit, if the first target is no good, there might not be any rns until the second target 500m or so later is reached.....very tricky to play this.....I would not do cfd's or spreads on this....I have some shares and will have to bite the bullet for a few weeks in the event of a "hydrocarbon no-show".....I will not sell however tempting it might be and wait for the next well to be spudded.

Gf, if he's a bog boy, let him answer for himself.

ok will do. he needs a bit of protection though sometimes.

RF - from where do you get this delusion? ...... DES have a statutory obligation to declare anything that might have a material effect on sp ..... apart from anything else, a news blackout on phase 1 results, followed by an inevitable timelag until phase 2 completion, would be a dead giveaway that phase 1 was a dud

I presume that between hitting target 1 and the target 2 : there will be very little time as drilling is to be pretty quick compared to drilling elsewhere in the world....so I think it's possible that they might wait until the well is completed before announcing results. I hope that we find out within the next week if the first lot is ok (Liz)....but you never know....look at Tullow Oil...dragging their feet on Likonde results....