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

Desire Petroleum plc

Drilling Update

Desire Petroleum plc (AIM:DES), the oil and gas company wholly focussed on the North Falkland Basin, wishes to provide a further update on the 14/15-1Z sidetrack well on the Rachel prospect.

Clean out of the sidetrack has not proved possible due to mechanical failure of the wellbore and it will therefore not be possible to obtain any wireline logging data from this well. However, the data acquired during drilling operations (from logging while drilling tools and geological data from cuttings) indicates that around 25 metres of sand with oil shows was encountered. However, in the absence of wireline logging data it is not possible to fully assess the significance of these results and, in particular, reservoir properties and the hydrocarbon saturations associated with these sands cannot be confirmed.

The current well will be plugged and abandoned prior to moving the drilling rig to a new location on the Rachel prospect.

The data collected from both the Rachel main bore and sidetrack will allow the selection of an optimum location to drill a vertical well to further evaluate the potential of the Rachel prospect and undertake a comprehensive logging programme. Undertaking the logging programme in a vertical well should avoid the geomechanical problems encountered in the sidetrack which were shown to be a consequence of drilling a deviated wellbore in an area where very little regional stress data is currently available.

This proposed move to another location on the Rachel prospect is subject to obtaining all necessary regulatory and partner approvals in a short time frame. In the event these approvals are not rapidly forthcoming, the rig will instead move to drill the Dawn/Jacinta prospect and return to Rachel later in the drilling programme.

Commenting on the well, Stephen Phipps, Chairman of Desire, said "It is disappointing that we have been unable to collect all the data that would have enabled us to fully evaluate the Rachel sidetrack well. However the data that we have been able to gather has given us sufficient encouragement to drill another well on the Rachel prospect. Following the Sea Lion oil discovery by Rockhopper Exploration, this is the second well to indicate the presence of hydrocarbons in what is now termed the east flank play fairway and gives us encouragement that further oil fields will be discovered in this area

cynic - just wanted to say congrats on your short - kerrrrchinnnggg - des goes in my bottom drawer! top up on the lows!! not all bad but not that good either the rns imo lets hope the approvals for the 2nd vertical are quick!!

At least they have found some oil.

They will take Rachel-1 logging results, sidetrack drilling results, 3D, Geo-Phys and come up with a Rachel-2 well location that should yield a lot more oil.

So their CoS will now rise into the next Rachel well, they are not chasing water or dry sandstone, there is or was oil there.

Now it might have all migrated up north and its all in RKH licenses...... thats the downside for DES (and upside for RKH).

However, Rachel-2 will now be very interesting and could yield something commercial, you never know.

golfing until this afternoon, so shall put a limit on my shorts and perhaps a buy order at around 40

To me they are clutching at straws....oil shows....but not able to test....I bet the rig will move and they won't come back for ages....perhaps after Jacinta.....they can't have the rig just hanging around.....risky drilling another well....perhaps good for RKH but not good for DES....

I was expecting it to be marked down heavily at the open. Seems to be holding up well considering.

Been stopped out....with small profit...

lol...hows those shorts going Chaps?

A bit disappointed it hasn't crashed as it's a crap stock.....nonsense update for a complete failure...they are just preventing the sp being slaughtered.

A complete failure.....lol lol...can you not read between the lines?

Oh ...come on....the reason for that is to prevent the sp going to below 50p...

Don't think they'd waste their time re drilling rachel if nothing there rf.,.

Was always going to do the opposite of what you thought!

Made a small profit....but should have been bigger....for the next well ...you lot go long....I'll wait and see......heavens help the sp if it comes up withthe same result....great stock for short term trades this....I'll give it that....

des never fails to surprise! thought would there would be quite a drop? just taken em out of bottom drawer!

As they can't afford to have the rig just hanging around, I feel they will drill the next well not too far away from the fist bore hole as quick as humanly possible.

I wonder what will happen if the next drilling finds oil and that it is migrated from the Rockhopper well.

That would put the proverbial cat well (no pun intended) among the pigeons.

greekman, vertical or lateral migration or both ?

Nobody really knows yet, but the more wells being drilled and the more data collected then the picture will become clearer.

Certainly with oil in the sandstone there are not going to be many people short on DES ahead of Rachel-2 results, just in case.

What ever, its starting to validate that the lower fans are full of oil and Sea Lion is 8 stacked fans where only the top two have been penetrated and, as yet, no oil/water contact point found.All very bullish for RKH and interesting for DES.

Short squeeze is on.

The price action kind of says that after a few phone calls were made earlier today it seems confidence is high that the next Rachel drill will strike a decent size of oil.......

Now that would be nice.

Info from the initial test of Rockhoppers Sea Lion well.

The data show that the well has 53 metres of net pay distributed in multiple pay zones, the thickest of which has a net pay of 25 metres.

Info from the first test of Desires Rachel well.

The data acquired during drilling operations (from logging while drilling tools and geological data from cuttings) indicates that around 25 metres of sand with oil shows was encountered.

Whilst the 25 meters mention is no doubt coincidence, and the Sea Lion show being from a successful wire logging proving the existence of oil, whilst the Rachel result is only a 'show', it just strikes me as odd. If Rockhopprs net play result was 25 meters, could this hint of a connection between the 2.

Any oil techies want to put a slant on this!