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

Rumour has it there will be an rns tomorrow or friday

Time to load up fully now.

Nope. Should have done it a while ago, sub 100p.

i reckon short odds on rns after close on friday, good or bad

Of course, with retrospective sight. Should have bought it at 30p.

On the other boards.....rumour of samples being flown back to the UK for analyses..........

He is a slippery bloke oily but a good source way back, if source goes to Scotland i know a lady up there but not sure where?

Post from III

Author Stu255
Date posted Wednesday 23:43
Subject Rumours + Rumours = New COS

OK, seeing as I hate posting during the day due to the excessive chatter here is a few fag packet calcs that should help some of the more worried amongst us sleep a little easier at night...

1st there is noise in Stanley that there was a gas encounter during the drilling process. This is a fairly common occurrence whilst drilling and can cause problems, it also raises a significant threat to the safety of the rig so several HSE procedures kick in when gas is encountered. Typically an alarm will sound to alert everyone that gas HSE procedures have been activated. The result of this is that everyone on the rig is made fully aware that there has been a gas encounter.

Now all of the OG crew changes are via the FI, and if every single person leaving the rig witnessed a gas encounter then there would be many, many sources of corroboration passing through the FI to back this story up. Therefore there is more reason to believe the rumour about the gas is correct.

If the rumour about the gas is correct the next question is where was the gas encountered?

A gas encounter can occur at almost anytime during drilling and it can be very dangerous, if things turn bad (which they can quickly) you need experienced and competent decision makers to retake control of the well.

The most common place to encounter gas is the top of a reservoir as the gas is from the same or similar rocks that expel oil the gas will rise through a reservoir and collect immediately below a seal or cap.

Gas is many orders of magnitudes more mobile than viscous crude oil when migrating through reservoirs and if the top or lateral seals have faults the gas will find them and slowly but surely escape into the surrounding formations where it will dissipate far and wide.

If a gas encounter was found immediately below the top seal of the Liz reservoir then we can draw several very powerful assumptions from that information.

1). The top seal and lateral seal are good
2). As gas is compressible it allows for a greater charge to accumulate across the reservoir, improving potential flow rates.

Amongst the vast swathes of survey data held by Desire is something very interesting pertaining to the Liz prospect a flat spot is seen within the Liz reservoir which usually indicates an oil/water interface and marks the lower extent of the oil in place. However a gas/oil interface would also show up as a flat spot on the survey data.

For me, if you take the survey data along with the assumption that the gas encounter rumours are true then it is likely that the gas encounter occurred at the top of the Liz reservoir.

Thus validating our two earlier assumptions, i.e.

1). The top seal and lateral seal are good
2). As gas is compressible it allows for a greater charge to accumulate across the reservoir, improving potential flow rates.

Lets just take a moment to see how those two assumption affect the COS for Liz and see what conclusion that brings us to...

From the CPR we see...

Trap risk......... Presence 1.0, Effectiveness 0.3
Reservoir risk... Presence 0.65, Effectiveness 0.9
Charge............. Presence 1.0, Effectiveness 0.9

Total COS = 17%

If we include our assumptions based on the gas encounter...

Trap risk......... Presence 1.0, Effectiveness 1.0
Reservoir risk... Presence 0.65, Effectiveness 0.9
Charge............. Presence 1.0, Effectiveness 0.95

Total COS = 55.6%

Also we have heard several rumours regarding samples of oil and cores.

I think it was Oil Brat who stated that some of the cores showed a porosity of near 30%... That result would prove the reservoir and a very effective one at that, thus taking the COS to near 100% and giving the BOD the data they need to infer that this is a full blown strike and that they now have the luxury of worrying about volumetrics and flow tests.

As I have said earlier in the week, as far as I am concerned Liz seems to be a strike.

Again obviously all of the above is simply an exercise in how to interpret some of the many rumours. And is in no way a expression of hard facts I have to hand.

Finally I would finish on volumetrics... or Money.

I sincerely hope the BOD publish as much info as possible regarding their initial results. I would be happy with xxx column of HCO's at pressure of xxx or samples of A were taken at depth B, samples of C were taken at depth D, etc, etc as we could then go back to the CPR and gauge depth against area and pressure and draw a wild guess at what the well test might yield. Alas I think there is little chance of such info just yet.

Anyway hopefully this thread will lead to more discussion about the well and fewer pi55ing contests.

I live and hope.

Very Interesting article in the Aberdeen Press and Journal today.
http://www.pressandjournal.co.uk/Article.aspx/1651272

All I can say is Tam Dalyell is a wimp and a downright coward. He doesn't deserve to be a MP.

"A Desire spokesman said the results from the first well would be published by the end of this month.

Its sounding very postive with core samples taken and on way back to UK.

Depends on what the core samples, if any have been taken, reveal, Marky. The share price is saying to me possible 'duster' but then this is 'tight-hole', however, would've expected to see some price movement northwards if all was going well. Obviously very much tight-lipped on this one.

Guess we're going to have to wait on the RNS from Desire which might be inconclusive, especially if the rig has to go back to test.

2 targets being drilled in one well....so even if it's not commercial at the first attempt, the sample indications will enable them to drill further wells later on....this drilling will carry on until at least next year...so patience...

or give up and go home....

for myself, i have managed to tame my greed and sold 80% of my holding, probably at a small profit overall .... this leaves me with a good enough base if significant oil is found, and no serious damage even if a duster

i must confess i do find DES's lack of performance rather unsettling, based on the fact that there are usually some heavy hitters with far more inside knowledge that any of us

I agree with cynic, I have held DES shares on and off since 2001, I sold out at 103 leaving a small amount to ride the rollercoaster.

That's the difference between the 'older, wiser & comfortable' investors & the 'young, impetuous & cash strapped investors'. For the latter, an oil strike would boost the cashflow big time.

EDIT: On the subject of news, the consensus of opinion on numerous other BB's (of varying degrees of reliability) seem to be that the results of the first drill were generally known last week (not specific details), but that HMG for a number of reasons (both domestic & international) have persuaded DES to delay releasing accurate data until after testing of core samples, which are on a RAF aircraft to the U.K. at present. So probable RNS mid to late next week. It would seem that, in return for a U.K military presence paid for by the U.K. tax payer, DES are currently understandably happy to dance to HMG tune.

one can also be older and cash-strapped through self-inflicted stupidity

not sure which catagory i come in.....