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

cynic
thanks for interpreting my post correctly.
regards
jkd

the article from oil brat flies right in the face of opinions i have sought from 3 different geoscientists. All of whom i have spoken to recently reg informations issued by DES. . His post reminds me of the tactics of the propoganda minister of the Third Reich ,Dr Josef Goebbels, who elevated the working knowledge of plasterers and brick layers to an art form : ' The harder you throw the plaster ,the better it will stick ' Apply this analogy to regards the paradigm of oil formation in the Falklands this then reads ' The bolder the lie,the more credible it is ' ...Oil brat on the back of a recent limp RNS seems to have, somehat arrogantly ,interpreted in a matter of days ,that which in turn puzzled,confounded,thwarted and eventually elluded the cream of Shell geologists for over 3 ferkin years !!!..Many of his figures are plucked from nowhere and his general interpretation is nothing more than pure speculation/ supposition ..Like JKD ill pass on the the initial 200% and await my 800% returns ;-)). For what its worth i happen to believe oil and gas will be found in both falklands basins but at a price, as yet, we simply could not pay !! Or rather cannot pay if economic growth be part of a nations agenda !! ................

So if DES annouces a oil / gas find and the price spikes we should short it ?

To many ifs to come to a conclusion at this time

Oriel brokers note

Desire Petroleum (DES, BUY, 47p), Rockhopper Exploration (RKH, HOLD, 55p) - Liz well result, a gas discovery

. Desire and Rockhopper issued RNS's on the Liz exploration well in
the Falklands yesterday afternoon indicating the well has resulted in a gas discovery.

. The well encountered 17m of net pay in an over pressured reservoir
at 2961m and an initial analysis of a sample suggests the hydrocarbon is a wet gas. Further analysis is required to determine the precise fluid characteristics, but the presence of a wet gas suggests the deeper source may be prospective for oil in the southern part of the North Falklands basin where it is expected to be buried less deeply. The overpressure encountered also highlights that an effective seal overlies this interval.

. Further work is required to evaluate the size of the discovery as
the trapping mechanism is unclear and the well failed to encounter the gas/water contact. The reservoir quality is also unclear but as a kick occurred in this interval and a sample was recovered it may be viable.

. The well also encountered the Liz and Beth fans, where oil shows
were observed in tight reservoirs.

. Whilst this well has been abandoned it appears to have provided
substantial new information which Desire will be able to evaluate over the next three months whilst the rig drills the wells for Rockhopper and FOGL.

. The Ocean Guardian will now move to drill the Sea Lion prospect
(Rockhopper 100%) before drilling Toroa (FOGL 49%) and Ernest (Rockhopper
100%) before drilling the last wells for Desire (which appear likely to target Alpha, Dawn/Jacinta and potentially Rachel).

a
a spike is only seen as a spike after the event. no one knows.
dont buy, and short, are NOT the same.
regards
jkd

JKD you sound like a headless chicken and a few others on here.......

Oil brat knows what he is talking..full stop,try looking up wet gas.
Do you know what size they have come across? and how big? and what its worth to the market? untill then you sound like a headless chicken.

This is only the start of a multi well and so far the model on liz was 5 m wrong...get a grip guys shorting or postive but dont fill the thread with crap like ADVFN or iii

m
i was talking to and replying to aldwickk .ok i reckon this aint a buy. but i havnt posted it as a short yet. sorry if you are unhappy that my view is different to yours.
as for the crap, i dont go over there, so i am unable to comment about that, just know that we dont get much on here. i was posting in general and not to topic. for that i say sorry.
good luck to you
regards
jkd
edit, it wont make any difference to price, it will do what it will do.

m
headless chicken? see my posts 3964(page 199) and 4343.(this page) plus my others since.
regards
jkd

Argentina to drill two wells next to Falklands waters in last quarter

http://en.mercopress.com/2010/04/09/argentina-to-drill-two-wells-next-to-falklands-waters-in-last-quarter

.

http://www.malverngazette.co.uk/news/8090199.Mathon_based_oil_firm_plugs_initial_Falklands_well/

Mathon-based oil firm plugs initial Falklands well

Fair price presently is around 70p a share (with Liz as a total failure) however, if news comes that following lots of work the gas in Liz is considerable and could well be in future, with other finds and a larger total volume, commercial, then the fair value price would be far higher than 70p.

Simply, yes, its oversold presently.

People buying now should easily be able to make a good profit in the coming 6 months, more than you will get in a bank.

Lots of news to come on what the did actually find at Liz, how it effects the total knowledge pool, new targets and of course, lots more drills from DES.

The last remaining shorts now appear to be closing out, and the bottom fishers moving in, following by momentum players so yes, could well be nearer 60p by end of the next week.

Marky- One day i forsee the basins of the Falklands yielding great bounty. Of that fact i have no doubt. As reg, current situ :and i re-iterate the current situ; What could possibly be a series of petroleum systems yielding both oil, coupled with its equivalent heavy condensate, and much lighter gas is to say the least very a most complex ,complicated and diverse one: lts more like a maze -and after speaking to Jean Laherrere -a friend of Colins -One that will require a lot more interpretation, employment of state of the art tec, and most importantly a lot more drilling , and i mean a lot more drilling-much of which will be purely remedial to alleviate probs encountered at Liz which in turn will need a lot of financing ........l personally dont think DES can finance a programme of such proportion without farming out a big percentage to a component of "big oil" ..But at what cost ? J/Vs with "Big oil" are like a double edged sword with a tendancy for operator marginalizing smaller interests .......ln saying that if DES should encounter a less demanding resource in later drilling programme then big oil would be q/ing up for a stake. ...,,,,,,,,l believe they are watching and waiting,,,,,,,,,,,,,,,,,,,,,,,,,ln previous mail i was not suggesting shorting this stock. Simply that it was a complicated call

DES and RKH appear to have steadied up for the past 3 days. Is there a pm due soon? I hold both but I am getting itchy feet.

However I have been in heavily with FOGL and BLT for a couple of years and I'm pleased to see them continue to move steadily upwards.

Just to let everyone know - i have edited my post4357(p218) as follows,
i have added the following 3 edits, (page199), (this page) and "plus my posts since". all else remains the same as original post.
regards
jkd

From todays DES results :

http://www.investegate.co.uk/Article.aspx?id=201004200700094297K

".....However, notwithstanding the potential positives we see from our own geophysical work and from Senergy (GB) Ltd's independent report in to our prospects, only by drilling wells will we truly be able to unlock the potential of the North Falkland Basin. Our first well, the Liz 14/19-1well was spudded on 22nd February 2010 with a target depth of 3,500 metres. After drilling to a depth of 3,667 metres the well was plugged and abandoned as a gas discovery, with 17 metres of net hydrocarbon pay between 2961 and 3031 metres within a zone of over-pressured, predominantly sandstone, reservoir. In addition dry gas was recovered from a deeper interval below 3,400 metres, good oil shows were encountered in the Liz fan and oil shows were encountered in the Beth fan. In each case though, reservoir quality was poor, and further detailed work will be undertaken to assess the results. A more detailed appraisal of the Liz well results will be included in the Annual Report and Accounts.

The Liz well proved to be complex yet it was highly encouraging. Hydrocarbons have been found in at least two separate intervals, the geological model for the basin has been confirmed and at least two petroleum systems have been found to be present, with hydrocarbon shows recorded over a wide interval. It was the first well to be drilled in a multi-well campaign by Desire and, after more detailed technical work has been carried out, Desire will decide which play type is to be drilled next. The Ocean Guardian is now subcontracted to Rockhopper Exploration and BHP for three wells and Desire expects to resume drilling sometime in the third quarter of 2010."

Business Financial Newswire
"North Falkland Basin-focused Desire Petroleum posts a full year pre-tax loss of $3.8m - up from $1.5m in 2008.

Operating losses for the year to the end of December rose to $3.9m - up from $2.9m last time but administrative expenses fell to $1.1m from $1.5m.

The firm has current cash at hand of $88m.

Chairman Stephen Phipps said: "It has been an exciting year for Desire and the company has made much progress in the period.

"Further detailed analysis on the Liz well is currently being carried out and we look forward to updating shareholders on the results when the analysis is completed within the next couple of months.

"We remain upbeat about the resource potential within the North Falkland Basin and look forward to recommencing drilling later this year."

" good oil shows were encountered in the Liz"......sounds promising

Hell!!! they've let marky out for good behaviour....

Peter Bassett, analyst at Westhouse Securities, commented: ""We consider that the shares have overreacted to the news on the Liz well. The well result adds to our confidence that there is a significant working hydrocarbon system in the North Falklands Basin, which could lead to commercial discoveries as drilling progresses. We maintain our BUY recommendation on the stock."