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

What could happen is that this current well could be a commercial failure for DES but derisk (hope that's the correct term) RKH's Sealion towards Rachel.....20 million barrels would be perhaps not enough for DES but Rockhopper might think that they have more......or am I getting this wrong ?.....as they are different targets...?....

confess i have no idea what "derisk" actually means ..... can someone enlighten?

put another way - if RKH drill another hole in Sealion. then to me that is "derisked" as it has already been proved that there is oil there, and it is just the quantum and/or efficiency of extraction that has to be determined

Could have the situation where DES's sp crashes and RKH's goes up a bit !.

If a company derisks, it increases the range of goods or services it produces or increases the number of countries in which it does business in order to reduce the risk that something bad might happen.

think i read that DES was "derisked" because it had already drilled one dud .... if that is so, i don't follow the logic, as the odds of another dud remain the same, just as they do when you roll dice

With Sealion only 15K's away from Rachel, there has to be a lot less risk of failure with Rachel as all the big bits of the HC jigsaw are proven too be in place....of course it could still fail !

Skinny we are talking about an oil company not a fruit and veg wholesaler!!!

De risking the basin or oil field is combining all the 2d and 3d and all the samples which have been taken and shipped back to the UK to be tested and then you combine every thing you have with the latest technology you can use to try to get the best possible picture hence you then de risk the chance of failure when looking for oil or finding the best place to do your appraisal well.

That's the FT's definition - don't shoot the messenger!

Marky, isn't it simpler than that.
They have found oil in the basin and tested it and therefore all other potential fields in the vicinity may contain oil.
TT

Cynic do you remember when Liz Came in as a duster .you asked me if I was worried and my reply was that I will worry if Sea Lion comes in as a duster as I knew Shell hit free flowing oil which flowed to the surface and capped it.

Well you wont get a better play than with Rachel as chav has pointed out its only 15k away a bit like the shell well. Chances are 50-50.

If Rachel comes in the whole game changes in the NFB.could be huge and just the start of a new frontier province with huge commercial fields no tiddles here.


TT...Yes

i actually agree that Rachel's chances of success are indeed enhanced by the proximity of Sealion, though my question was really rather more general

DES have a Public presentation in Stanley tomorrow, so will have to see if Mr Phipps can add any fresh info....only one full trading week away from possible news on Rachel outcome...18th Oct onwards imo.

The trading action should hot up here over the coming week.

From late next week possible RNS and they wont make the same mistake as last time and let the papers leak it out.Lets hope they have learnt how RKH do things.....

let's hope it's oil leaking out and not methane

Nice to see that DES is remaining Blue, amongst lots of Red today.

but so is FOGL - for me at least!

what % have you got on your short?!

50% stake .,.... i wasn't THAT brave, even at 148

Certainly need more caution with shorts than longs imo.