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

Ps...wrong thread.....talking about AEX...of course...

RNS still drilling...getting toothache!

What RNS?

this one .....

Desire Petroleum Plc (AIM:DES) the oil and gas exploration company, wholly focused on the North Falkland Basin, wishes to provide a further drilling update on the Liz 14/19-1 Exploration well, where wireline operations are continuing.

From the interpretation of the logs received to date, it appears that the deepest play type is still undrilled and Desire's intention is to drill around a further 200 metres to test this play subject to operational constraints.

Wireline logging and sampling have been completed on the lower section of the well, primarily below 3,400 metres where the deeper gas shows were encountered. Petrophysical interpretation indicates that gas pay has been penetrated but that the reservoir quality in this section is poor.

Wireline sampling and pressure recording has still to be carried out on the primary Liz target and a number of other zones where hydrocarbon shows were encountered.

Final completion of the well is expected late next week.

Thanks for that. Escaped me somehow.

Memo to self, must keep awake.

cynic,
do you consider this RNS a glimmer of hope for DES's first well or do you foresee a P&A? Crystal ball type question i know. I hold and consider it a glimmer of hope but not enough to top up yet [sat on a 60% loss] though i did trade a few on the bounce
Alex

Very interesting news on DES, the non mention of Beth all the time, and now the mention that the "deepest play remains undrilled".... so far :)

The bad one might turn good by late next week.

If it does I wonder how many people will be really upset they sold ?.

robert - no good asking me i'm afraid; marky is much more technically informed .... however, on the basis that DES thinks it worth continuing to drill and P&A is not necessarily as dire as it sounds to us amateurs (see post 4282), then the jury remains out ..... market (non)reaction, even after this rns, implies that the specialist analysts are also unsure

People kid themselves in a number of ways - it's human nature. Take your pick.

and your opinion, born of knowledge, is what exactly?

One thing everyone should be aware is DES WILL P&A every well. Its in the EIS document.

Each well will be P&A as if they try to suspend it it means they must return within a fixed time period, its far easier to P&A and then work in a new drilling plan in future, as opposed to suspend and then be forced to return in a fixed short period.

@ 3400m it sounds as if Beth, which is virtually sitting on a couple of Shells sample drill holes has penetrated that companies discovery of 98,and perforated the outer walls of the known resavoir of 165 feet of gaspay estimated to be 5-7 TCF .... But as l have stated that amount would simply NOT justify the crippling costs of constructing an LNG plant . Perhaps DES clculate on more modern drilling tecniques increasing the known resource ,or more than one column of gas being found in the vicinity - Shells report clearly indicated the presence of more than one gas play deep in the syn-rift / But what must be of immediate concern is the timescale of events -namely every extra day that rig stays onsite it is costing 250/300k .There must be a good reason . lf an LNG plant is realistic DES would need a partner with deep pockets; and they only exist in the world of " Big oil" which brings me to a bigger point . Where is Big Oil ? Despite their usual preoccupations with increasing reserves by acquisition and farming in on potential prospects all over the world "Big Oil " is showing a lack of interest in the Falklands paramount to either political expediency, or as is more likely ,by the simple fact they believe the region is primarily a gas play and a bit of a red herring when it comes to oil ....Only time will tell l am afraid ....................l have no position in DES ; albeit traded it a few times; but hold FOGL when floated @ 40p...

TFC - your analysis is interesting, and i agree about the LNG angle - there would need to be truly massive reserves to make it viable ..... however, why would DES persist in drilling, at the colossal daily outlay you admit, if they did not feel good reason?

Circa 6 Tcf would be commercially viable, and of course we know RKH have gas already, so the more gas both companies find and total together, then the more the total gas figure goes upwards.

The interesting thing is that all the work of logging and testing (downhole seismic?) of the past so many days appears to be in the bottom of the hole (as they state they have as yet not wirelined of tested LIZ or other oil shows).

Therefore whatever is in the bottom must be exciting them.....a lot of time spent down there so far, time that is costing money, so it could be something significant.

All gas and gaiters, TFC has only stated what we all know but some refuse to believe....

All gas and gaiters derek Nimmo.. lol.

:-) nice one BB. Havent a clue what you mean but it sounds funny -...One needs a sense of humour to stay in this game ........Of all of lifes little ironies can you believe this . Out of the blue I met a guy today who works as a fitter doing agency work - most recently for a Dutch oil company.-and while he knew the oil industry inside out he knew absolutely nothing about the dynamics of the industrys shares . But what a source of info . l had to laugh as here he was quite innocently waffling away without realising the implications of what he was saying. Namely ALL the WORK on offer from his agency is in the Falklands at very top dollar/ says something very big has already happened out there and his agency along with a number of others are recruiting on a truly massive scale offering long term contracts - everything from riggers and the usual rig make up to geologists, marine biologists , civil and petrochemical engineers ,architects,house builders, surveyors ground workers,administrative staff to Caterers and security personel and every trade known from plumbers to joiners to ...well...- the entire package ;..............All i can say is that i left him feeling quite exited / and without a doubt in the world hydrocarbons are present in a big way but as is often the case with big money- politics has reared its ugly head and is dictating state of play..........noses to the trough and all that ...................................form an orderly quee please...!! ,,,,,,,

also had juste completed work fitting a turbine for a coal fired plant in Angelsy off coast of West Wales,,,Both coal and nuclear making a big comeback in next 10 years ,,,plans are in pipeline to add a second plant at Capenhurst, and another at Dungerness/ seven new gas/coal/nuclear generators to be built before 2025

so are you pulling on your buying boots for falklands oilies on tuesday?

As nobody has said it !. Happy Easter all...and may the Falkland oilies make us rich....