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

trader here thinks that's a load of bollocks, or minimal only at best

hence the phrasing of 'small punt'

no i don't you cheeky bugger!

Come on Desire get the RNS out before the weekend!!!!!!

if it's a dud, as most of us suspect, then RNS will not be until after hours or early monday morning .... if there's good news, then would surely be out now and certainly sp would not be slipping ...... that's my wishful thinking anyway

Mental...being in this....at this stage.....you will have to forgive me as I have sinned....yes I have bought Nighthawk......oh dear....yes...please forgive me....

i shall, but your bank manager may not

He has nothing to do with it (I hope)...but that graph over there looks atrocious....perhaps a blip up is coming...anyway check out AFC...going like a train again....

Don't think they can get anything out now!

Time to start the weekend and be an early bird on Monday having enjoyed the extra hour of slumber!

We better get the sunday times or one of the others...they seem to find out before anybody else...

nail biting weekend for some but not for us.

My plan is to top up on RKH....perhaps on monday...we shall see...

As said crews changed today......gossip and the Times

calm for me too hali, though i have some (short) exposure here, ditto with FOGL, and small long in RKH

At this stage...could be risky....braver than me...for DES...I could have, but daren't risk it....

well decided to hold me des over the weekend - buoyed by afc today! i have decided i am mad because if i am honest i reckon des will probably not have found much worth reporting i.e. sizeable hc find, which is great news for cynic if so - at least one of us will do well!! however being as i am mad now a tiny bit of me and that down market rag the sun thinks they may have a find worth something, then the other drills so we'll see - modest investment if it goes tits up just leave in the bottom drawer till the other drills which have an incredibly high 1 in 10 chance - lol! be eaiser to light me cigars with a 50 pound note - at least i can watch it burn!! gla

In the short term...perhaps not good, but over a year or so...loads of prospects to be drilled...very tricky playing cfd's on this and even more so on spreads but shares over 1 to 2 years...will come right at some stage for a profit big or small.

rf - i think you are right - & if rach is a duster / non commercial - i am seriously not really worried either way - great if hcs found - if not will hang on and top up as low as possible along the way - have a good evening

I mentioned this yesterday that with Rachael been a duster and Desire side tracking in to another fan system Marlon seems to think it is Kath.even if hydrocarbon are found I would think it will be uneconomical to extract .which is bad news if you are holding Desire Shares, thought we would of got news yesterday and wondering if the gale force winds they were experiencing yesterday interrupted the logging so I guess we will all know the results on Monday.



From marlonthemonkey on iii

The objective of the Rachel well was quite simple.

" every sand encountered under the regional seal charged with oil"

This was the Pyrex scenario where Des could visit Ninky and Elaine and Anna with great confidence and a commercial oil discovery behind them.

This has not happened. Several sands are not charged. We have adjusted our maturity depth model and started to use faults close to the basin margin main fault as an excuse or reason for the failure of the geological model.

It would seem there is some sense in this, the sidetrack is not a dry hole IMHO. It has encountered Kath. Kath is the smallest of the named eastern basin margin fans and has a P50 of 29mmbs. Personally I take that number as a guide, could easily be double or half. Important in the short term as DES need a commercial find, but significant also in proving the geological model.

If Kath has oil and Rachel doesn't what have we learned? Can the failure of Rachel be dismissed by faulting and maturity issues? Most significantly what does this suggest about Elaine, Ninky, Anna etc. These prospects are within the Barremian, which fans are likely to be charged? Which can we rule out?

The story will be in the telling. The next RNS could be upbeat and market pleasing or another black Monday.

now for the bonus ball. The largest opportunity within the NENFB fans surrounds migration vertically through the late Cretaceous and Jurassic fans. The sidetrack is the first 2010 well to start looking at what happens at the base of the Barremian mature zone. What happens when the mature oil source rock meets mature Valanginian gas source.

The ideal scenario for me at least, is that the Valanginian gas displaces some of the Barremian oil in the lowest Barremian fans providing a gas cap driving mechanism helping flow and maximizing recovery factors. On a P50 of 29mmbs this could be key in commerciality decisions if recovery was simple and 60% say.

The second ideal scenario is if our Valanginian gas can displace the oil from the Barremian into the late Cretaceous fans e.g. Ruth Jenny and Emma. time will tell concerning the viability of this hypothesis, but Rachel will provide some clues IMHO.

finally, We went to Rachel to find the key. IMHO we have found more clues but no key, we can be more confident that the key exists and that when we do find it the treasure will be extensive. This may and possibly should be market pleasing.

My plea to DES BOD is to forget the jaunt to Jacinta. A second side track or preferably a trip to Ninky or Elaine to find the blinking key!!!

Exciting, frustrating, nervous times ahead DES fans. It was ever thus!