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

this doesn't look like a rigged market bear raid that sometimes happens for no good reason other than lucre ..... i very much fear holders are going to be thoroughly fried and there will also then be quite a severe knock-on at RKH and all the others

Told u yesterday.

market did indeed look very suspect yesterday, and as i posted several times previously, buying into DES looked a poor gamble

I have a few but not bothered what it does....will be patient....people seem to forget that the Falklands campaign has only just begun.....

DES UPpdate - not much? Guess it means no luck yet?


Desire Petroleum plc (AIM: DES), the oil and gas company wholly focused on the North Falkland Basin, wishes to give an update on the drilling progress to date on the Rachel 14/15-1Z sidetrack well.
1

The well is currently at 3,000 metres progressing towards the expected measured total depth of around 3,418 metres.

Still drilling...no surprise there then.

a non-committal update just issued .... sp perked up initially but has drifted back down

can't see the point of the announcement

to try to calm the market

Shorters will suffer if they hit something.....would not bet either way......

A very big IF...

Close your short soon if you want to be safe.

When will the drill reach 3,418 metres ? what time uk time

looks as though there's a lot of bear closing waiting in the wings, but it's a brave man who buys on the basis of a find

TD will be another 2 days away.

If I had a short..I would close it...2 shorts ..I would close one.....3 shorts and I would probably wear one of them....but not in this weather....

Too early to close shorts... wait till the results would be a smarter move.

Evolution broker note today:
"The initial disappointing results from the Rachel exploration well were a reminder that exploration activity, and therefore understanding, of the North Falkland Basin is still in its relative infancy. The Rachel well is now being sidetracked towards the centre of the basin with a result due in the first week of November. We, and it appears the market, are nervous about the outcome and with the next well (Dawn/Jacinta) having less than a 10% chance of success we move to a neutral recommendation.

The company has suggested that the resource potential of the side-track is unchanged at 250 mmbbls and that the chance of success may actually have gone up based upon the information gained from the initial well, however we have taken a more cautious view and now value Rachel as a 150 mmbbls prospect with a 10% chance of success (was 250 mmbbls with a 20% chance of success). Our approach may be pre-emptive but we would rather be conservative than not.

With Desire drilling two more wells in the northern part of the Basin post the Dawn/Jacinta well there are reasons to be optimistic. Indeed, we are of the opinion that more oil discoveries will be made in the vicinity of Sea Lion. However, taking a bearish view on the Rachel side-track and the Dawn/Jacinta prospect to be drilled subsequently in the southern part of the basin (just a 6-8% chance of success) we move to a neutral recommendation and 66p target price. This is a 70% discount to our revised Core + Risked NAV of 220p. Option value for this share, where we would be buyers given the current level of information is, below 40p and the price the shares hit after the Liz well result earlier this year."

hardly an endorsement to go out and buy ...... 6/8/10% chance of success? ...... that is truly grim

Not in Des but as I am in Rockhopper, I obviously have an interest.
Not saying the week-end press have it wrong, but just remember all the rumors of a duster circulating across the media a few days before Rockhopper bought their well in.
Many believed these rumors and sold.
Fear is a strong incentive to sell.
At the time I was not tempted to sell, not because I am not exempt from such strong rumor or fear of loosing lots of cash, but for the simple reason I was abroad and not in contact with the modern world. Lucky me!
Would I have sold at the time of the rumors. In all honesty, I don't know.