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

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.....

does divorce come into it at some level.....that can certainly cash strap a good man.....and not just the stupid ones...still being in DES means a better chance of recovery......

http://www.fool.co.uk/news/investing/investing-strategy/2010/03/19/drilling-in-the-falkland-islands.aspx

Worth a read!!!

looks like DES shares your sentiment cynic, going down. Along with RKH..

as DES does, so will RKH

News next week....

where does risk/reward tip in favour of buying? ...... 90p doesn't look far off the mark, though one might not see that level today or even before result is known

http://www.iii.co.uk/investment/detail/?display=discussion&code=cotn%3ADES.L&it=le&action=detail&id=6105037
Good post from Videodawn on iii

Proselenes wrote on the RKH thread as below, but i feel it has more relevance here ....
The COS on each well is low, so the odds favour a failure, so there is tremendous shorting going on on all Falklands stocks.
However, for those holding, should Desire strike oil the rush to close shorts will create one massive price spike as shorters trying to close and also new investors buying all chase the stock price way upwards.
The overselling will create a low price for now, but shorts have to close at some time, and in the event that DES stike oil, you watch the rocket explode.

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cynic comments .....
though assuredly short positions have to be closed at some time, there is not necessarily a time limit in which it has to be done ..... further, if the closing of these is done voluntarily and not because of a bear squeeze, then the effect on sp may not even register significantly.

that said, and i confess i vacillate appallingly on this, much of the weakness over recent days is quite likely to be down a to a lack of buyers and (very) short term positions being closed due to sp really not performing as might have been expected - i.e. surging in the run up to the result rns

is the result rns late?
arguably so, which does not generate confidence in the result

when will the result rns emerge?
indications are now by friday 26th (after hours?!) or perhaps as late as wednesday 31st

what is my guess as to its content?
inconclusive - neither a duster nor the hoped-for pot of gold, but rather "further investigation from additional wells required"

worth a gamble next week?
depends on your pain and risk threshold!