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

if they don't find oil, it matters not if oil is $6 or $186, and indeed, it does not make any direct difference even if oil is found as it'll still be 3/5 years before it comes on steam

Oil now $87.

one variable that still slightly bothers/ baffles me is why did the CEO dispose of over 200,000 shares at a median of 98.4p a mere 4 days before the arrival of the rig . Whilst there may be several valid reasons as to why he disposed of this holding ,which while it is relatively small , can hardly be construed as an endorsement. Can it ?......Or is he as much in the dark as the rest of us ? ...............With hindsight it was a shrewd move considering the stock is now 50.50p......

Maybe for end of year personel tax reason's ?

rationalising! ..... that said, it's just as easy to read something sinister into the move ..... TFC has enough experience to know that the windows allowing directors to change their holdings are pretty limited, so have sold when drilling was already under way would have been severely frowned upon (i think)

It's the percentage of the holding...that's whay you have to go by....if it was just 5%....so what...if it was 50%...not so good.

and the answer to that is ...???????????

I haven't the time to do the maths.....percentage held minus percentage sold....anyway...on to the next well soon....

Prior to selling 215,000 shares, Sir lan Duncan had a total holding of 700,169. So in percentage terms he sold approx 30%. At much the same time two other directors Stephen Phipps and Anna Neve both sold 2,180,000 shares- but considering their respective original holdings were both in excess of 36 million this is is quite an insignificant percentile (approx 6% ).,,,,,,,,,,,,,,,,,,,As for myself-,still non the wiser

anyway, DES looking very peaky today, but not desperately so following latest rns as below ....

Results from the Liz well 14/19-1 in the North Falkland Basin have proved highly encouraging, Desire Petroleum said today (6 April).
The well has reached a total depth of 3,667 metres.

Final logging has been completed and the well is now being plugged and abandoned as a gas discovery.

The initial log interpretation indicates that 17 metres of net hydrocarbon pay were encountered between 2961 and 3031 metres within a zone of over-pressured, predominantly sandstone, reservoir.
A hydrocarbon sample and formation pressures were recovered from this interval.

The initial analysis suggests that the hydrocarbon type is wet gas, but its precise characteristics will be confirmed through further analysis.

There is no indication from log data or pressure data of a water-leg in this interval.
Desire says much work is now required to evaluate the reservoir quality, to determine the trapping mechanism and to assess the potential of this discovery.

Chairman Stephen Phipps said: "This well has proved complex and highly encouraging.
"Hydrocarbons have been found in two separate intervals, the geological model for the basin has been confirmed and at least two petroleum systems have been drilled, with hydrocarbon shows recorded over a wide interval.

"More sandstone was encountered than expected but typically of poor quality.

"However new reservoir targets have been identified and the challenge will be to predict where these may occur in better quality."

It's all been priced in already.

P & A I mean.

RKH brilliant trading stock

i agree, and have taken an additional trading position in DES to catch on the bounce as assorted short positions are closed - already hold some RKH

I am short here cynic.

not bright if you haven't yet closed ..... but ditto your long position in CHAR when you had a handsome profit

I'm not bright cynic but the RNS does not inspire me.

not much likely to happen till the next drill in second half 2010, suggest switch to RKH as they will be drilling shortly.

rns was not meant to inspire but merely indicated that the predictions of doom were overdone ..... imo, there is a pretty good chance that on the back of that, the sp will recover several pennies that will give a quick but useful profit to bank .... for sure the current downside looks minimal

If Rockhopper are successful...this will climb as well....but we are a month away from results...

Very well worth a read, from Hal over at TMF on the news from DES today,

http://boards.fool.co.uk/Message.asp?mid=11888028

.

Hal is in denial.