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

profit banked at 112.75 ..... profit of say 8.5p after commission; very happy after less than 48 hours holding

I go and get logs out the field and the price goes up...hmmmmmm

You've done the same Cynners.....put my gains into RKH....not sure about DES....market cap far too high on the back of Rockhopper...it's as if a big discovery is already been bagged.

not exactly ..... haven't added to my RKH holding, but merely banked a nice profit on DES which looked a good trading opportunity - and so it proved to be

Market very bullish for Desire Petroleum.....nothing booked as yet apart from the gas discovery which on its own is probably uneconomic...on the spike up, I could not resist the switch over....will come back after testing is complete....there could be a very sharp pullback for that company on a change of view...very sharp....slow climb turning into a 30p drop.....sp far too high at the moment...
Check out some gold stocks....being in one or two apart from CEY is a must....

There are some incredible pictures from space on the saffir-simpson weather site....2 major hurricanes and almost a third one over the Yucatan penisula (Mexico)....probably just a tropical storm but it has spirals....3 in a row....I fear it will be a miracle if one of the two big ones doesn't hit the east coast or florida....heading straight for it at the moment....could affect american suppies of crude....

Think you guys need to bin RKH and buy back into DES .

RKH will grind to a halt after Flow Test as DES will have the OG for 4 back to back drills...RKH kitty will also be nearly empty and need refilling before proceeding...postive flow test results may see RKH sp going up another 40% and a successful Rachel drill should lift DES sp by 200% or more.

Very interesting that Dawn/Jacinta will be the next target drilled after Rachel and that they expect them to have a different HC source than Ernie, despited being next door....migration from the North Kitchen for Dawn/Jacinta rather than a local source rock.

Who says that the next target will be successful....the risk is huge for DES shareholders...a dry well and you are looking at sub 50p again....

you're spot on RF
however, it's an interesting call as to whether or not DES is now undervalued relative to RKH
my money says that DES is a good trading stock in the present climate - so i do not mind at all that price has improved further since i banked my profit yesterday - as if the RKH flowtest is good, then though DES will benefit, RKH will benefit even more AND RKH happens to have a 7.5% stake in the relevant DES licences

Exactly, and I sold at just over 116p....so at the present moment not too bothered about todays rise.....so far.....

If the probablity is that RKH test will be good, I feel that it is too early to be out of any of these. Am holding with a limit sell, pending SL results. Calculated risk, but more upside that downside, imo.

For what it's worth, agree with Harry. All will be influenced by RKH, decision time is on or after flow test results. A hold for now.

Des will probably along with RKH go up.....not so much.....because so far it has next to nothing to show, but the pullback afterwards could be severe and I cannot watch all the time...some days I can...others I cannot...DES is overvalued now, so god knows how could it be valued at say 450 million pounds if RKH comes good...crazy....I fear a sharp drop back to reality....

RF, the flow test will be postive next to drill is Desire the only way is up.

You don't think that the market cap is too high ?...on positive results from Rockhopper : this could rise as well but not so much as RKH....and then with a market valuation in excess of 400 million I fear a pullback on punters thinking that the next well could turn out to be a dud....

StockMarketWire.com
Desire Petroleum started at Evolution with buy rating, 136p target price.

DES shifting up nicely again today with good volume....should accelerate if Sealion test goes well as investors confidence in Rachel will improve hugely.

Evolution note out today, in part:

Scream if you want to go faster
The 2010/11 Falkland Island drilling campaign has started off with one
major oil discovery, a non-commercial gas discovery and two dry wells.
We expect the area to continue to attract investor interest: there are at
least three more wells to drill in the North Falkland Basin, flow testing is
ongoing at the Sea Lion discovery, and there is potential for Borders &
Southern or Falkland Oil and Gas to contract a drillship to expedite
activity in the deepwater South and Plateau Basins. We initiate coverage
on Argos (BUY, TP 52p), Falkland Oil and Gas (BUY, TP 248p), Borders &
Southern (NEUTRAL, TP 101p), Desire Petroleum (BUY, TP 136p) and
Rockhopper (NEUTRAL, TP 359p).
It has been an encouraging start to exploration in the northern part of the North
Falkland Basin where Argos, Desire and Rockhopper operate. Rockhoppers Sea
Lion oil discovery has proved the potential for commercial oil fields (analysis of the
1998 drilling campaign having concluded that there was an active hydrocarbon
system present). News from the southern part of the Basin, though, has been less
optimistic the Ernest wells failure to encounter hydrocarbons has called into
question the areas prospectivity.
The South Falkland and Falkland Plateau Basins to the south of the Falkland
Islands are far less developed, and so far only one well (the unsuccessful Toroa
prospect) has been drilled. The remaining prospects will require a deepwater rig to
be contracted, something that is being worked on by Falkland Oil and Gas partner,
BHP Billiton, and by Borders & Southern. The lack of wells and data make drilling
in these Basins higher risk than in the North Falkland Basin but this is offset by
larger potential prizes, with prospects generally surpassing 1 bn bbls each.
Valuation
While the Falkland E&Ps have historically been grouped together, there is a clear
distinction between those operating in the North Falkland Basin and those in the
Southern Basins as these are geologically different areas with differing risks. While
we see upside for all companies we have grouped the companies by area and then
based recommendations on where we see greater relative value. In the North
Falkland Basin, we prefer Desire (Buy, TP 136p) over Rockhopper (Neutral, TP
359p), owing to the formers leverage to near-term drilling. In the Southern Basins
we prefer Falkland Oil & Gas (Buy, TP 248p) over Borders & Southern
(Neutral, TP 101p) owing to its mix of play types and more attractive valuation.
Argos (Buy, TP 52p), is at a less developed stage than the other four but operates
in the right postcode and appears a low-cost entry route into the prospective
northern part of the North Falkland Basin.

Latter part is complete crap.....DES comes up dry and check out the redundancy package !...

Rf, IF DES comes up dry. It's all about evaluating risk, hence their expression 'near-term drilling leverage'. If DES hits oil then the sp will rocket. RKH have already hit oil so the potential upside is less than that of DES.