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

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 !.

Onshore infrastructure not necessary for Gas and Freddy has the right ships for transporting direct from the Wellheads.

Totally agree with our Mr C . Albeit classed as a gas discovery, and providing definitive proof that quite distinct seperate petroleum systems exist in the Northern basin around the Falklands, that in itself, is something of a misnomer. And to be honest much ado about nothing . Berh sounds like misinterperation of seismic -seems worthless- while estimates of 5-7 TCF being bandied about for Liz are very different to that which could be safely and easily extracted; and most importantly commercially viable. The gas encountered is in VERY thin columns,and i mean THIN !!. Furthermore they are scattered, and enclosed in tight, poor quality basins, and due to heavy pressure at deeper levels the drilling is fraught with danger. Although variables may/will change as DES furthurs its drilling programme, lt would take a very brave or stupid B/D to even think about the construction of an LNG plant based on current dubious data As for shipping direct from wellhead this again would involve use of FPV s which DES could ill afford.They could do worse than find a partner with the technical ability and rich coffers only to be found in the world of "Big Oil " in much the same way that FOGL has entered a both savvy and fiscally sound arrangement with mining giant BHP ....With hindsight it looks a shrewd move Sir lan selling 215,000 @ 98p does it not ?..-Tosser .Whats the ticker for trading in hindsight then ?

Actually i should thank Sir lan and his fellow directors who sold over 4 million shares between them as the rig arrived. Saved me a lot of money.

http://www.pennenergy.com/index/petroleum/exploration-and-production/display/2923430149/articles/oil-gas-journal/exploration-development-2/discoveries/2010/04/desire-has_two-zone.html

Desire has two-zone gas find north of Falklands


By OGJ editors
HOUSTON, Apr. 6 -- Desire Petroleum PLC is plugging its Liz 14/19-1 well in the North Falkland basin as a natural gas discovery in two zones.

Early log analysis indicates the well cut 17 m of net hydrocarbon pay at 2,961-3,031 m in an overpressured, mainly sandstone, reservoir that appears to contain wet gas. A hydrocarbon sample and formation pressures were recovered. No water leg is indicated, and much work is needed to determine reservoir quality, trapping mechanism, and hydrocarbon potential.

The well also recovered dry gas below 3,400 m from a poor-quality reservoir in a pressure regime different from the shallower zone. The rock type and reservoir potential are uncertain. Total depth is 3,667 m.

Desire said, The Liz fan was encountered between 2,540 and 2,568 m. Good oil shows were recorded while drilling but logging and sampling confirmed that this reservoir interval was tight. It is believed the Beth fan was also penetrated between 2,654 and 2,672 m also with oil shows in tight reservoir. In both fans, work will now try to determine whether better quality reservoir may be developed updip.

The company also noted weak oil shows in conglomeratic zones at 2,706-2,932 m.

The well didn't reach the deepest play type in the prerift, and it wasn't suspended for later tests because it wasn't designed to test overpressured gas.

Liz was the first well in a multiwell campaign to explore the North Falkland basin. Rockhopper Exploration will now drill two wells in the North Falkland basin and BHP one in the East Falkland basin before the rig returns to Desire for further drilling later in the year.

Desire's 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.

This well has provided some promising results, gas has been discovered at two levels and the prospectivity of the basin has been greatly enhanced. We now intend to carry out technical work to assess and analyze the information that we have obtained from this well and we are very much looking forward to resuming the drilling campaign later in the year.


Source:Oil & Gas Journal

its all over bar the shouting... in my opinion, or maybe a miracle. anyone who bought after14th mar were just pure gamblers. ( see my post no.2010). anyone buying now are same..... all in my opinion. discuss as much as we like but until price gets above 130sh and stays there this aint worth the trouble and anxiety.plenty of others out there.
whatever you do or decide then good luck to you..
regards
jkd
edit. whoops! that should read post no.3964

you're not quite right insofar as there are a number of prospects in which DES has a slice with others - see header map

Back from sunny Cyprus.....happy days!

A post from Oil Brat on iii

Ok folks get a cuppa and start reading and thinking.

The stock market is where the rash give money to the calm.

What happened and what does it mean.

Apologies if some or all of this has been written before. The single most important thing that has occurred as a result of the Liz well is they have tested the geological model over a significant distance from the nearest control point and it has come in very well. This significantly improves the chances of success in other wells. Poor reservoir rock means its tighter than required, this is either result of mineralization or clay content. I would strongly suspect the latter as mineralization is likely to mess up everything including the 17m in the discovery.

Note that they only called this well for Liz and Beth, they declined to comment on the deeper targets but they knew it was possible (Jan in much earlier documentation). It would appear there is an unconformity (a major change in the geology) circa 3000m, they clearly wanted to test this hence the well being at 3500m design.

Note that seismic can not tell you hydrocarbon type and reservoir quality, that can only be done with a drill bit. Liz and Beth have come in as expected but the sandstone is too silty, in this section, note that, in this section. This is a complex depositional environment as indicated by the mention of conglomerates, its a highly variable laustrine fan system. They will now use Senergys sedimentologists in conjunction with the earth model to determine where the clean chanel sands are most likely to be. This has all been done before it isnt easy but there is a science to it.

Most importantly there is charge, and seal, if it wasnt they wouldnt waste time looking up dip. The seal means that the rest of the declared targets and more importantly the number of undeclared targets are now much more likely to be successful. (More on targets later). The charge ie oil presence means the source rock maturity and migration path prediction were correct. A major tick in the box. Incidentally as everything is in place but the permeability and no one can predict that a head of time, the well found the structure as predicted. That means there is an oil filled structure in the North Falklands basin of approx 2 billion bbls in size as per the CPR. So experts state there can be no sizable fields in the NFB? Bamforth get your coat youre leaving.

First gas discovery. A 70m section of reservoir with a 17m section of good reservoir rock. Sorted. Again complex geology but thats a winner. Nice condensate or is it? They dont say where that 17m sits in the 70m. Appeared to be wet gas emm youve got the sample it is what it is or is it, there is no water leg er so is there an oil leg you couldnt draw down on? There is more to this than there are stating. The fact that they have no water contact this far down dip in the structure is extremely good (and indicate very good sealing), but no mention of a gas oil contact, this could well be an oil discovery but the quality channel sand is in the gas cap Watch this space. Senergy will have to do the 3rd party piece on this they cant call their own commerciality on something this complex. If thats condensate then its probably a commercial discovery if its light oil its definitely a commercial discovery. This is only going to get better not worse otherwise they wouldnt have come right out so quickly to call this a discovery.

Second gas discovery. Yes thats what it is but they cant say it out right because they couldnt do the work they did on the first discovery. The well has encountered and I think fairly comprehensively proven a second source system (That should be determined by the geochemistry over the next weeks). Its likely a deeper hot Jurassic source. They have to abandon the well at that point because its too dangerous, note they didnt drill to the desired 200m. Technically they ran out of kick tolerance and they where just too exposed, stopping was the right thing to do. Again if they had found a water contact they would be obliged to declare that as they have specifically declared they didnt in the first discovery. They didnt test because the 9 5/8 shoe couldnt hold the pressure if anything went wrong, they didnt say they didnt test because they didnt think it was worth it, subtle but very important difference! (By the way, there is no way they had Liz and Beth exposed while messing with high pressure gas, so that line about Liz and Beth yet to be sampled was BS in the previous RNS, cheeky but I think my sources where correct)

Two source rocks, this is likely to double the number of targets. Any potential closed structure below the shale seals is now a prospect to be considered as possibly viable. The number of these is likely to be in 100+ range. They say that new reservoir targets have been identified and leave it at that, but they have to cover their collectives where as I can just say it like it is, it will be hundreds, The lower prospects will most probably be hot gas but hell give me that basin wide and Im a happy man.

Ok bigger picture, they have found 3500ft ish of highly hydrocarbon rich formations. They have confirmed two independent petroleum systems and made two discoveries. Lordy you dont see many wells like that one in your career. It is fair to say that the North Falklands basin is prolifically hydrocarbon rich. This is tremendous news for the basin potential as a whole. That is now 6 wells out of 7 with strong hydrocarbon shows (hell 3500ft of it!) that is far far better than the start of the north sea. Basically we are at the start of the next North Sea and our company owns the vast majority of 26 north sea sized blocks of it. You can buy that for approx 180m, the city analysts are clowns, the world financial centre deserves to be moved.

I have been buying this week and will continue to do so while the price is a joke. I am certain I will see a minimum of a 1000% (one thousand percent so there is no typo) return on every pound I invest today over the next three years.

I am often critical of the board but they have played this one brilliantly. Colin sir, as a fellow geologist I tip my hat to you where ever you may be

blimey
a one thousand percent return over 3 years. cant be bad.
so my previous posts seems to suggest its first got to prove itself at 200% from here, the difference being just 800%. so why not wait until proven? only miss out on 200% just my opinion.
regards and good luck.
jkd

too much hype and hyperbole for me to take all that verbiage at all seriously .... quick scan, and it reads like a load of bollocks and/or wishful thinking from someone who holds too many

cynic and a long term dedicated ramper!

i assume you are not linking my revered name with ramping - lol!

cynic
thanks for interpreting my post correctly.
regards
jkd