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

rf - good mate

hc - des settle imo around 140 - 130 range today - maybe drop on close - tomorrow???

take a look at rrr, also ggp under 2.1p

but i am sure you will be on that or aware already

otc high reward high risk etc etc et cetera!! lol

btw i am already in ggp nut would not buy at the moment - great share with ab at helm but can save much with patience there

Just bough a few more DES.....surprised this is not north of 150p.....I'm almost convinced that with more wells coming we shall see the sp above 200p soon....by late spring perhaps...

why so many sells?

simples really .....

"This is clearly an encouraging result, but Desire have not given any indication of resource potential," says Oriel Securities analyst Nick Copeman.

The same "sauces" that told me DES had struck oil also says SQZ have struck gas..... so I am waiting with baited breath for SQZ news soon.

RF, the trouble is they need to raise money, so I expect some time soon a fund raise at 120p levels to pay for more drilling........

Thats why I wanted to sell at 200p on very good news, this news is good, but 150p was enough for me based on what they have found so far.

RKH is the giant, DES is now the follower.......

cynic lol dude - yep we do not know if commercial - finger on the pulse
i know the analyst we all expect a rise iis watching - however meantime doubt despite find continues - look at l2 if that is ones best tool
but great find heavily derisked so far about avg sp expected

rob shame you never sold 145 + but watch l2

Not yet...but testing is on going.....give them a chance....

look to sell / buy back - only if in profit of course

So can anyone put a time table on here on what happens next and how long??

rf buy low mate - good news commercially watch it go

wouldn't sell below 2 now they struck oil and 2 more to drill before RKH gets rig, enormous upside I would think next few weeks

Bought a lot more this morning....

me too, more news to come

Balerboy

Oil has been found

How much and is it commercial

News on update i would think tom or monday

Preliminary data collected indicate that this well is an oil discovery. The
company has run an initial suite of wireline logs and this together with the
drilling data indicate that the well encountered a 349 metres gross interval
from 2621 metres to 2970 metres of sands and shales with hydrocarbons ,of which 57 metres is net pay in multiple zones. The thickest zone is 8 metres thick with an average porosity of 20% . Other zones are thinly bedded and lower porosity but require further analysis from additional wireline logs to establish reservoir potential.

did you get up late marky? snowed in so nothing else to do but watch this unfold, expect great things - always have from DES. I dont know why but always thought DES has more potential than the other Faulkoils and if this discovery similar to RKHs price to double to be worth same i.e RKH current valuation 900m, DES has the choice areas in my opinion, wouldnt surprise me to see 2 tomorrow. What do you think?

Comment from Fox Davies :

Desire Petroleum (LON:DES) (BUY, 2.00) (DES, 152.75p, %u25B2 (44.34%)) announced that the 14/15-2 Rachel North well has reached a total depth of 3052m and that preliminary data collected indicate that this well is an oil discovery. The company has run an initial suite of wireline logs and this together with the drilling data indicate that the well encountered a 349m gross interval from 2621-2970m of sands and shales with hydrocarbons, of which 57m is net pay in multiple zones. The thickest zone is 8m thick with an average porosity of 20%. Other zones are thinly bedded and lower porosity but require further analysis from additional wireline logs to establish reservoir potential. Desire now intends to complete the wireline logging and wireline sampling programme to obtain more information on the reservoir quality, the hydrocarbon saturations and the fluid type to assess the significance of this discovery. Further information will be released in due course.

Comment: Have Desire and Rockhopper cracked the North Falkland Basin? Possibly, as Rachel confirms one of the play concepts unravelled by the Sea Lion discovery. It remains to be seen though whether reservoir development and quality are sufficient for Rachel to be commercial. Hence this is obviously very good news but still early days.

Even if this well is not commercial....it probably will not matter....as appraisal wells close by will be needed....this is a tremendous success for both DES and RKH....no problem now about fund raising and this area around Sealion and Rachel will see production rigs ...I'm convinced at that...

http://www.bloomberg.com/news/2010-12-02/desire-petroleum-surges-after-discovering-oil-at-rachel-well-in-falklands.html


.......Desires Rachel discovery may yield about 50 million barrels of recoverable oil, which would make it borderline commercial, Panmure Gordons Hitchens. Its not a slam-dunk like weve seen with Rockhopper......