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

and just WHY should DES have a greater chance of success with their next well? ..... the odds remain much the same as they were previously

LOL.

Why are they the same ? Are you unable to read.

Firstly, Rachel-1 proved that there is an effective seal via a fault laterally, thats why nice sandstone but no oil.

Rachel sidetrack proved there is oil on the other side of the fault, in sandstone but what is likely to be at the flank.

All they do now is move the rig to an updip location on the side of the fault where there are oil shows in the lower fans and drill that.

You have lateral seal, sandstone reservoir, oil shows which greatly derisk an up dip drill now on those same sandstones.

Much greater Chance of Success now that previously, although still not a sure thing, but much higher than before.

much the same, is what i wrote and i stand by that ..... everyone knows there is a 6 on a die (dice is plural!), but the chances of throwing it remain the same with each throw.

Shorters appear to be running scared now.

No bravado ?

No 50p target prices ?

No deramping ?

Quite funny really. I do not hold DES and will wait for good news before buying, but I do find it hilarious how this thread gets from time to time. There is real information out there, but people just shoot from the hip with all sorts of nonsense posts most of the time.

Everyone has the right to express their opinion, regardless of whether it opposes or supports yours.

If they come up with an uncommercial well : 50p.....how's that for you ?...

Harry, of course they can, I am just stating how funny it is at times with the nonsensical stuff some come out with, when they clearly have no actual idea of the information and are simply shooting from the hip.

Or maybe the short sellers are devoid of emotional attachment, so have banked their profits from the recent falls, and moved on to something else until this next comes into play.

a bear is by definition NOT emotionally attached to the stock! ...... as i have said many times, i am happily short (still) of both DES and FOGL, though long RKH

just as i think ASC is ridiculously overpriced, but have had my fingers singed for acting accordingly, so it may be that i shall be wrong on both/either DES and FOGL ...... however, for the time being i am prepared to sit and wait and watch

cynic the Falkland Islands is rapidly becoming yesterdays story unless some "tangible discovery" is made, time to move on.

Harrycat,

Well said, 'Everyone has the right to express their opinion, regardless of whether it opposes or supports yours.'
Why do people have to get out of their tree whenever someone posts something contrary to their views.
Cynic is asking a very straight question, 'And just WHY should DES have a greater chance of success with their next well? ..... the odds remain much the same as they were previously'.
Often people post views that make sense to themselves (because they know what they mean to say) but to others the points are not always so clear.
Sometimes I run posts past others prior to posting, and now and then they say, the meaning could be clearer.
Not taking sides, but if you have an answer then just state it without having a dig.
Only posted the above because as my knowledge of the oil business is still very limited, I know far more than I did, mainly due to contributions from many on here, and I wish this to continue.

hali - not if one is shorting!

Rachel 2 has to have a much higher COS because it is going into a zone which the sidetrack has proved to contain at least 25m of HC's shows...

i'll take your word for the above - i saw that they had found only traces, but still
however, even if you are correct, DES will still have to find minimum recoverable >100 mb to give it even a chance of commerciality

as it stands, it is still blue sky and, if i am not much mistaken, they still need to get formal permission and then to get hold of a rig.
what timescale do you put on that?
i would say 12/18 months, by which time there will be a lot of stale and disillusioned bulls who will have sold out and thus, de facto, an sp reflecting a more realistic view

.

Very wrong cynic.

Sea Lion is only a few kilometres away and Sea Lion is potentially a giant. Even with its present estimated size its commercial.

What that means is that small size finds on the periphery (eg Rachel-2), if they hit 50 million barrels they will be commercial as its easy to tie back into Sea Lion production facilities later.

Therefore Rachel-2 only has to hit a modest sized deposit and its commercial on the back of Sea Lion being very close and tie back ability.


cynic - 03 Nov 2010 11:02 - 5449 of 5450
i'll take your word for the above - i saw that they had found only traces, but still
however, even if you are correct, DES will still have to find minimum recoverable >100 mb to give it even a chance of commerciality

DES would benefit by a modest find, and RKH would benefit as DES would be sharing costs.........

Win-Win all around if Rachel-2 hits a modest sized find.

you do talk a load of bollocks so often, but that's fine .... you're happy to be long, and i'm happy to be short ..... however, i note you do not dispute the timescale i mention nor even that it was only traces that were found per the latest info

cynic, your constant resort to petty abuse demonstrates you are a little too emotional with this one perhaps, I assume therefore your short is presently loss making ? ;)

"as it stands, it is still blue sky and, if i am not much mistaken, they still need to get formal permission and then to get hold of a rig. what timescale do you put on that?"

Cynic

I presume you have not read the RNS?

They still have the Rig!!!...providing FIG give the necessary permissions and permits then they will Spud within a week...if they don't get FIG approval in time then they will drill Dawn/Jacinta first and then go back to Rachel and drill rachel 2.