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

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."

This is in deep trouble.

Always bizarre how a certain number of posters start predicting a drill will be a failure or a success and then re-appear to start crowing about how right they were. When all said and done it's a 50-50 call, if you get it right you look like a messiah, you get it wrong, you look like a total prat. Mostly those who get it wrong disappear until the dust has settled. I don't think I've seen Hyleo on the BP thread since she was screaming short at 330p only to see it climb 100p!

Hope no-one has got too burnt in these latest developments, but I suspect the NFB has a long way and many drills to go before the story is fully told.

Lost on RKH....with my latest long....and bought into DES...today and yesterday....have to hope for better times ahead.....

lol i like proselenes map - anyone want to buy some des shares from me - lol - looks like i will be holding for a while now :-((( still believe it or not i am still confident here side track will find 1b barrels (in my dreams!) gla

Hope for the best, but plan for the worst!

3 wells to come after that...plenty of time for recovery above 100p.....

http://www.proactiveinvestors.co.uk/columns/fox-davies-capital/3645/desire-petroleum-max-petroleum-and-mariana-resouces-feature-in-fox-davies-newsflash-3645.html

Desire Petroleum (BUY, 2.00) (DES, 109.75p, ▼ (17.33%)) advised that the 14/15-1 well on the Rachel prospect has reached a total depth of 2,877m. Initial wireline logging shows that no hydrocarbons have been found. However a substantial thickness of sandstone was encountered in the upper part of the target zone, comprising 103m of gross sandstone of which 81m is net reservoir with an average porosity of 23%. The Rachel well has provided much new valuable data on the distribution of the reservoir targets within the Eastern Flank play and in particular the calibration of the 3D seismic data for sandstone prediction. The understanding of this play type is rapidly evolving but one of the biggest remaining uncertainties relates to the oil charging mechanism from the mature oil source rock to the fan sandstones. Based on the latest information from this well, potential sandstones have now been identified downdip from the existing location, closer to the mature oil source rock, significantly reducing the oil charge risk. As a result the well will be sidetracked to this location to evaluate the prospectivity. The sidetrack will commence when the present logging operations are complete. The total depth of the sidetrack is planned to be 3,418m measured depth with an offset of circa 1.2km from the total depth of the original vertical well. The sidetrack will be designated 14/15-1Z and is expected to take 20 days and the Company will make a further announcement upon completion of this sidetrack. The Rachel well is the first in a likely four well drilling campaign operated by Desire. Following the 14/15-1Z sidetrack it is intended to move the rig to the nex t location 25/5-1 on the Dawn/Jacinta prospect in the Desire 100% Tranche I licence.



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Stanley Gibbons posts strong full-year results as stamps defy the downturnAtlantic Coal consolidating the niche US anthracite industry Lo-Q: Busting the theme park queuesComment: A disappointing outcome for Desire although good reservoir characteristics have been found in the target formation. Access to charge seems to be the issue more than timing and a sidetrack closer to the kitchen sounds like the right course of action. We are not writing off Rachel at this stage and maintain our rating and price target.

Auction again.

And again.

Nobody believes 70p when I call it a couple days ago.

Going long again.....the drop is way overdone considering the prospects in hand,...

Catching a falling knife is a circus act.

rf good luck, sp reflects their success (or lack of) to date, can't see where the upside is coming from in the short term, they are burning cash and if they have more dusters difficult to see investors contributing to another fund raising.

A rebound of a sort should be coming....and I think with Jacinta and Elaine back to back wells coming up : 100p should be feasible once again.....fully funded at the moment...

panic selling before the close?

weekend press should make interesting reading!

Fancy selling now....bonkers....

rf not if the sp is going to 50p!