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

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......

Rob we are sitting in 2 foot of snow at moment and its not going any where, you can imagine with the hills that we are snowed in and kids will of been of all week now.

The market are uncertain at the moment to how much Desire have found and is it commercial I would of thought it should take 24 hours to do further test to pin point exactly what Desire have found so the next RNS will see this fly or dive.

Trying to keep an eye on flow test equipment in the Falklands as I would of thought if its commercial they will want to test it straight away so possible 2 big jumps in the share price to come in the near future.

Now if DES and RKH have both found large commercial finds then its a game changer from now on..big time

marky, Sea Lion being big will make a small 50 million find commercial nearby as they can tie in to Sea Lion.

Thats where the hope lies with Rachel, DES need it to be 50 MMBO in recoverable size.

lol not today

So many ifs at moment Pro hence the market uncertain but they have hit the black stuff.

There is also the fact that as Sealion goes ahead, perhps the proximity of Rachel 2 might help....and therefore the minimum amout of barrels for it to be commercial (cost wise) is reduced.....

Marlon the monkey

Plus points
Stacked fans over 300m gross
Over 50m net pay
Barremian 3-6 mature zone seems to work
Possible major upgrade after full logging
Bodes really well for prospects with thick sands in that pay zone

Negatives
Only thin fans at the right depth at Rachel
Thickest fan just 8m
Missing seismics to see how thick they may get
Porosity and permeability unknowns

Do we:

A)Want yet another sidetrack at Rachel
B) A new Rachel well?
C) a new location with known thick late barremian fans e.g. ninky
D) a death or glory punt at Jacinta
E) a sealion appraisal whilst the seismics come in
F) none of the above

Cash reserves
--------------------------------------------------------------------------------

Thanks marky, didn't realise it might be so soon.

Proselenes

RAMPER that is you, and the reason is you are posting the same, ( for some rubbish, copy and paste ) on so many different "webs" >>> moneyam, iii, advfn, LSE, etc

Do not twist things when you are loosing the argument >>>>

Below you said it was a dodgy source and now you are trying to say is a good source, not everybody is so STUPID like you


Proselenes - 01 Dec 2010 08:26 - 5617 of 5684
Its not, when you refer to a dodgy source you call it a "sauce".......

Proselenes - 30 Nov 2010 09:28 - 5572 of 5601
All "sauces" are now saying oil strike.

cielo.....


AND WHAT WAS IT ?????


WAS IT AN OIL STRIKE ??????????????



LOL



MY SAUCES CONFIRMED !!!!!!!!!!!!!!!!!!!

And now you have proven yourself to be a scumbag cielo, I shall add you to my squelched posters list.

So I never have to see the rubbish you post ever again :) Bye Bye loser......


Edit : And there you are now with the others

Users you currently have squelched

hilary
Master RSI
zscrooge
Balerboy
ptholden
ravey davy gravy
cielo

Girls...................please scratch your eye's out else where.

Evolution's summary so far:
"Analysts at Evolution commented:" This appears to be a better quality reservoir than in the original Rachel well (reservoir quality is the main issue in the North Falklands Basin (NFB)) and should be capable of a decent flow rate.

"Wireline logging is to continue over the next 10 days (to establish reservoir quality, oil saturation and fluid sampling to get an indication of API) but no flow test is planned at this stage - so the non-believers will continue to be sceptical.

"However, we believe that the initial indications are good and a second discovery derisks the eastern flank of the NFB with the potential to become an important oil province, with positive implications for Desire (DES), Rockhopper (RKH) and Argos (ARG)."

Good for north of 150p again and might hold....

And the Goldman Sachs take on things:
"Analysis
The discovery of oil is a positive in our view, and the presence of 20% porosity reservoir is also encouraging for both this prospect and the potential for the wider basin as a whole. We note, however, that the thickest section was 8 metres and that porosity was lower outside this section, which may mean additional work is required before the company is able to comment on commerciality or volumes. We currently value the Rachel prospect at 9p per share for Desire (which has a 92.5% stake), and 3p per share for Rockhopper (7.5% stake). A full de-risking of this prospect would result in a 97% uplift to our valuation of Desire and 4% for Rockhopper, based on pre drill estimates, but we note that it is too early for a full de-risking at this early stage. We await further details from the company to assess what level of de-risking should take place at this point.
Implications.
We would view the discovery of oil in 20% porosity reservoir as a positive, but note that much of the net pay was in thinly bedded, lower porosity sands which may limit some of the upside today. We believe the result will focus attention on the potential of the north Falkland Basin which we believe will be positive for both Desire and Rockhopper. Our price target is under review."