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

Told you yesterday rf that it was all over and a sidetrack would happen.

i'm not going to try it, not least because i am playing golf this afternoon, but i wouldn't be at all surprised to see a late and vicious sell-off to +/-60 as friday draws to a close and positions have to be squared

I shall have to listen to your calls more often Proselenes....I shall have to stay put for now and wait and hope for recovery in the next few months.

RF - even at the current price, there is more scope for further falls than for a bounce.

RF - you're acting like a rabbit in headlights ...... have a cup of tea and start thinking logically and realistically

True.....but perhaps the dud well is in the price......at 165p....that was a crazy sp...but at 78p.....could be a bargain....

How about 40p

When they spud Jacinta, there will be people climbing on board....it will happen...no doubt and the sp will climb...and after that well...2 more to be drilled....a recovery has to come....and I cannot watch all the time...

40p...?....I hope not....

You don't have to watch all of the time - that's why God invented stops and limits.

Have to go now....otherwise....no work will get done....will catch up mid-afternoon....

Just a matter of interest for me rf, you say "77p.....and took a small profit on that lot....will stay put on the rest". For tax calculation purposes, I believe if you trade RKH in one dealing account, your stock is pooled, so your trades are drawn down earliest first. Therefore your 77p sell would have been matched against your earliest held buy and subsequent buys. Or are you trading CFD's?

No....spread for RKH...no shares....but shares in DES...in a sipp...no cgt...if you trade outside the sipp you have to watch the 30 day rule.....waited the full 30 days on several sales.

Ah, good man. So you're not always a "rabbit in headlights" then? ;o)

no; i've learnt some pretty tough and bitter lessons over the years, and posting common sense on here, helps me to act on same ..... that's why i am very very happy to have stashed away some very significant (for me) profits on RKH and absorbed some sustainable losses on the way down - even if brain should have prevented me buying on some occasions!

I felt like that when I saw the rns....ghhhhhaaaggg...good drilling campaign coming up....I think we shall see the sp above 100p along the way once again.

delusion and wishful thinking, and assuredly NOT properly thought through

At one time...just a few days ago...a lot of people thought I was mad not to buy in at 165p...now I'm mad to buy in around 80p....there all nuts selling today unless you make a quick buck....now is the time to buy in...the well is a dud...on with the next one...loads of prospects..loads of them....sounds like Harry Enfield....loadsamoney....

Its a sell to me next week could fall to 50p imo.

Oriel note:
Desire announced this morning that the Rachel exploration well was unsuccessful and whilst the well encountered a thick sandstone, no hydrocarbons were encountered.
The well will now be side-tracked into deeper targets which is expected to take 20 days to complete. These targets look higher risk given the sands are likely to be worse quality and thinner in the deeper part of the basin. However these deeper sands should be better located relative to the source rock.
Desire is expected to be funded to complete a further 3 wells (including the sidetrack) which was expected to include Dawn/Jacinta and Elaine, which we estimate are worth 117p/sh on a risked basis. However all these prospects look high risk following the failure of Rachel and our recommendation is under review.
Whilst this result is also bad news for Rockhopper, which held a 7.5% interest in Rachel(which could have been worth 60p/sh), Rockhopper's current share price looks more than underpinned by our view of the value Sea Lion discovery. However Rockhopper 's shares are likely to remain subdued until the funding issue is resolved."