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

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.

I think it's the most down to earth (no pun intended) post i've read.

Now the attention is focused on RKH in a few weeks its going to be time to fill your boots with DES and then wait for the rig to get back to DES in a few months.

Also in the meantime they might announce just how big that gas find is :)

Buy when others sell, and sell when they buy :) Best strategy :) !!

forget the gas ..... there'll never be enough to make it commercially viable

cynic, nonsense.

The combined finds of RKH and DES could well be far in excess of 5 Tcf, a common figure for their to be a viable LNG plant. The gas adds up. The bottom area of LIZ alone could be multiple TCF, perhaps "Ann" will reveal more there.

http://www.investsmart.com.au/news/news.asp?function=print&Action=Display&DocID=SMH100330CM4IT60QJ48

THE first well in a controversial oil hunt off the Falkland Islands has provided BHP Billiton with some early encouragement for its own upcoming drilling program in the region, one that has infuriated Argentina.

Sydney Morning Herald - 30th Mar 2010 - Barry FitzGerald

THE first well in a controversial oil hunt off the Falkland Islands has provided BHP Billiton with some early encouragement for its own upcoming drilling program in the region, one that has infuriated Argentina.

Desire Petroleum of London has reported that drilling of the Liz permit may have encountered oil, and gas at deeper levels. While the reservoir quality was said to be poor at the Liz location, confirmation of of the presence of hydrocarbons upgrades the prospectivity of the region and BHP's acreage.

The drilling rig used by Desire at the Liz prospect, the Ocean Guardian, is scheduled to drill an exploration well off the Falklands later this year for BHP.

The offshore drilling program by Desire, BHP and others has renewed tensions between Britain and Argentina over their rival claims to the Falklands that led to war in 1982, when Argentina's military rulers seized the islands, only to be expelled by a British naval force 74 days later.

The prospect of the waters off the Falklands being home to a big new oil province has prompted Argentina to revive claims of sovereignty for Las Malvinas, as it calls the Falklands.

gas - i am sure you are wrong as the cost of all the necessary infrastructure + shipping it thereafter would not make economic sense

The argies can have 1% as long as Messi can play for the English national side !.