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

TFC (and RF) - i took profits in some, but see/saw no reason to chuck all o'board ..... similar logic to my holding in RKH

ROB - it's a moot point but HMRC agrees with you; that's why there is no CGT on s/b

rf it's all about the potential size of the oil fields, if DES becomes another Tullow or Cairn the price will be approx 50ps or 18 respectively

Weather conditions staying good for the OG so hopefully get spudded by Monday...ish.

all pure hypothesis Rob, with very little of substance on which to base any estimate

Chav...sorry but you are dreaming....possible, but the risk that the next spud ends up a duster or uncommercial are huge.....minimum of 20 million barrels to be viable...

RF....where did you pluck the 20mbbls from RF????????????????????.....last offical info on that subject that I read suggested 60mbbls @ $50/bbl!!!!

Not sure what you think I'm dreaming about but RKH have made me a small fortune for a dream and DES are increasing the small fortune....hope I don't wake up!

Is next one to spud Rachel?

EDIT: Have checked & answer is yes, so am I correct in saying that if it is a duster then that would put a pretty firm line on the southern extent of the sea Lion formation, which would be minimal damage for RKH but severe blow for DES?

Chav....it depends on the cost for bringing into production on its own basis or with another nearby discovery.....your figures are probably more exact.....which means that they have to discover a lot....this could be a situation where most of the black stuff is with RKH and not much with DES....who is to say that the next well will be a success.....this will be an enormous gamble from the shareholders...buying in at any price above a pound...the stock is worth 500 million punds as it is.....a strike ..a big one is already in the sp.

totally concur ....a strike is patently factored into s/p here reg. Rachel . Frothy is the word..........3 dusters on the row would .l humbly suggest, see an immediate massive retracement significantly less than 100p.....mais qui sait ?........But current trading does appear a little soft ...../....dont know whats wrong with me today in so far that i have agreed with RF twice in a day...;-0 but current m/c of 500 million can only be justified by a sizeable strike

To be in or not to be in....? and at what price.....no way at the current sp....

sorry chaps to be 0/t but COV working up a head of steam - Looks interesting ...,,,,,,relative to the FI oilees of late its snailish by comparison but always good to have a little diversification

Check out FPM....

I guess you will have to sit on the sidelines again rf and miss out then!

Thats the kind of comment that people lose money with.

DES is not "likely to perform" much better.

DES is likely to have lots of volatility and could go to 400p on an oil strike, or 50p on another duster.

DES has nothing at the moment which makes it high risk of a major fall on bad news, and its present market cap is already pricing in a 100 million barrel recoverable find.


robstuff - 22 Sep 2010 08:51 - 4631 of 4651

I don't have sympathy for shorters, shouldn't be allowed to sell stock you don't own, i can't sell my neighbours house! DES is likely to perform much better than RKH, with loads of newsflow over coming mths and huge potential finds 10ps is not out of the question

Got a few more this morning....Spud RNS Monday should everything go well over the weekend...OG should be pulling the anchors today and the weathers good for the short shift over to Rachel.

i have a 50% stake remaining here, which indicates the strength of my belief that DES will hit money - or even oil

Placing of 16,294,600 new ordinary shares at 140 pence each to raise 22.8 million

Highlights

Desire to raise 22.8 million through a placing of new shares at 140 pence each

Placing proceeds will be used to acquire and process further 3D seismic over the Desire acreage

Ocean Guardian rig due to revert to Desire imminently to drill Rachel prospect

Desire Petroleum Plc (AIM:DES), the exploration company focussing on the North Falkland Basin ("NFB"), is pleased to announce the successful placing of 16,294,600 shares at 140 pence each to raise 22.8 million before expenses. The new shares have been placed by Seymour Pierce with a range of new and existing institutional and other investors."

but not the mug punters of course! ..... that said, i do accept that to offer to the mug punters is a much slower process and also much more costly

it looks like just a 5% dilution which is not exactly drastic, and the placing price isn't giveaway either

Just wish I had delayed my purchase for 30 minutes though!
It would have been cheaper.

Always seems a bit unreasonable to inform the market after the event, but I suppose there would be huge volatility if we knew in advance.