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

Unfortunately Greek, BBs are far from immune to stupid comments (aka Mitzy) I guess they forget to engage brain before posting. Just be thankful AM has few such muppets, unlike the Zoo which is rife with misinformation, malicious rumour, downright lies and people who should probably be locked up.

I'm pretty much with Cynic on this one, anyone trying to make this sound better than it is, is looking through rose-tinted specs. It's a duster and I am sure will be P&A (now if that's a stupid comment, I'm happy for it to come back and haunt me!). In the meantime I'll see what happens over the next few days but will probably take the loss and move on.

ptholden as oily said a breath of fresh air.......I had certain info second hand came my way i do not rule out Beth till i see RNS...contact postive on findings...am at loss tonight.........with all info....

Ouch Mitzy you've been verbally given a red card.. get the set and you can join him in the zoo..

Have a read, good write up on it :

http://www.fool.co.uk/news/investing/investing-strategy/2010/03/29/oil-investing-the-first-falklands-flop.aspx

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I made a comment 10 days ago saying I was negative about DES so I was not surprised it fell 50% yesterday and that it could fall another 50%.

20p is my target.

heeeeeee Mitzy do try to engage that brain before you type.

markymar I have just read Hallucigenas report and he is saying buy at 51p for a 70p target...previously he said 95p.. Iam afraid he is in denial after yesterdays 50% fall so there might be gas but he expected oil and there is no oil.

The Times were right.

Am I mising something here? Apart from a day trading opportunity, why buy DES at the moment, at this price? The RNS is not what investors were hoping for & those who did not sell are now having to wait for the next drill. But in the short term I also think that the sp will drift, even though there may be a bit of a boost when the various stages of RKH drilling program gets under way. I can see no reason to currently buy DES, but am open to suggestions.

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I don't know the exact timescales but with several companies in the area taking turns in drilling, there are bound to be rumours and counter rumours over the next few months/years and the sp's are going to be flying in all directions until the dust settles which gives all traders a chance to buy and sell and hopefully make some dough.

mitzy can you point out to me in the RNS where it stated that no oil has been found and can you tell me the results of Beth?



http://www.oilbarrel.com/nc/news/display_news/article/shares-in-desire-petroleum-slump-as-first-falklands-exploration-well-finds-poor-quality-reservoir/771.html

March 30, 2010

Shares In Desire Petroleum Slump As First Falklands Exploration Well Finds Poor Quality Reservoir


After the highs, come the lows. Ever since last September, when Desire Petroleum indicated it had a rig in its sights, excitement has been mounting about the first exploration wells to be drilled in the remote waters off the Falkland Islands for more than a decade. Rumbles of discontent from Argentina only raised the public profile of this already long-anticipated drilling campaign, putting some real firepower behind the share prices of the exploration companies, among them Desire, Rockhopper and Falkland Oil & Gas.
Last month, Desire spudded its first well in the North Falkland Basin since 1998, when a previous much-hyped exploration effort came to naught following a series of disappointing well results and a slump in the oil price. This week, press speculation in the Sunday newspapers prompted the AIM company to issue an early update even though the well, targeting the Liz prospect, is still logging.

The well has reached a depth of 3,570 metres and encountered hydrocarbons in the primary target at around 2,550 metres. Reservoir quality is poor, however, and the well looks to be sub-commercial. There is still much more to learn, with wireline sampling still to be carried out and logging required of the deeper reservoirs where gas shows have been encountered below 3,400 metres.

Gas, of course, is not top of investors wish-list given the difficulties of commercializing the stuff out here in the southern Atlantic it would only be useful if found in the multiples of tcf so that investment in LNG could be justified. There is some consolation for investors that the well has encountered oil, providing further evidence as to the existence of a working petroleum system in the region (Shells test of the Fitzroy prospect in 1998 recovered live oil to surface).

It is still too early to read much more into this holding statement. Smarting investors in Desire must now wait until later this week when a full announcement will be made. By then logging operations will have been completed and the results analysed, enabling the company to decide whether to deepen the well, suspend it for testing or to P&A.

The lack of good reservoir is a disappointment but not unexpected in this type of environment, said analysts at Fox Davies Capital. This is not a good result but hopefully the logs will provide valuable data.

The market reaction to the news was unforgiving, with shares in Desire losing almost half their value to stand at 51 pence by mid-afternoon on Monday, while Rockhopper, which has a 7.5 per cent interest, also suffered, with its shares down 18 per cent at 44 pence per share. Shares in Borders & Southern and Falkland Oil & Gas also dropped, even those these companies operate in the South Falkland basin, a region with a very different geological and structural setting.

Investors should take heart, however, from the fact this is only the first in a possible six-well campaign. And unlike the 1998 campaign, which tackled only one play type in a relatively limited portion of the basin, the 2010 wells will target different play types and structures so one failure wont write off the other wells.

Seasoned investors will know that exploration is a numbers game and that every well drilled, even the dusters, help build up a valuable picture of the subsurface rocks that could help the next well strike it lucky. Even so, a good result from the next well, Rockhoppers 100 per cent-owned Sea Lion prospect on the western margin of the basin, would go some way to restoring some very shaken investor confidence.

Slightly different take on things from iii - Falklands still full of Desire dreams

Fancy a hot cross bun..?

you're likely to find yourself with a hot smarting buns if you don't behave!

i love it when you talk dirty cynic....

stop eavesdropping you old queen - this is a private discussion

lol..

watching L2 pretty much all day ..... for the first time in several weeks, buy book is longer than sales .... further, bid price is staying solidly above 53 and on good volume ..... this implies to me either that "the boys" are not anticipating (been told!) P&A or bear closing to crystalise profits

rns tomorrow (morning?), so where are we to bet sp? ...... 30/35 or 65/70? or just plain yawn?

May not be tom Cynic as they are running MDT at moment, depends on how many locations they use it in the well.tick tock tick tock!!!