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

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."

I would guess a fund raising at around 120p to 130p levels now, they must be short of cash to drill a further 2 wells IMO.

Question is, a quick and dirty one at the above prices to fill the pockets short term ? or a big one at a much lower price to pay for 2011 drilling ?

Thats the big question mark over DES now.

RKH have the money to pay for the rig on their own, DES do not have the cash to fund a 2011 campaign.

My price targets are 200p for DES and 600p for RKH.....this basin will come right...

My target is 15 for RKH, maybe 20 if they get really really lucky.

They are playing for over 1 billion recoverable barrels in 2011 - you do appreciate that......

Thats like over 10 billion US$ in the ground value up for grabs in 2011 with a follow on billion more in 2012.

Hope you are right....have nice positions in both companies now.....in the short term the sp for DES should return to 150p.....

Made almost 2 grand this morning in short term trades on XEL....wrong thread....sorry...

Almost a deliberate error there rf??? ;o)

On the wrong thread, sorry....but there are tremendous regular bumps on XEL this morning....

You can't short sell this online at IG which makes me feel it is going to drop.

I'm interested that you want to short sell.
I'm out atm, having taken profit this morning, but happy to watch for a dip.

I should short OCDO....853 million for a home food delivery service....a bunch of lorries....nuts valuation....

I thought that was


Obsessive Compulsive Disorder

Maybe what we all have just by being here ..

I would not short DES....

And here again for all to see the RAMPER
RAMPER - Proselenes - BURN to HELL like the share price

from ADVFN >>>>>>>>>

Pro_S2009 - 2 Dec'10 - 09:15 - 3424 of 3455
Yep, the same poster said...
DES has oil
SQZ has gas.
I have heard this from other "sauces" as well.
And now today we know DES has oil, so fingers crossed SQZ will announce soon a major gas find.

from moneyam

Proselenes - 02 Dec 2010 09:12 - 5665 of 5692
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.

DD - even if it looks as though you can't deal on-line with IG, you may well find that if you phone in, your deal can be placed

deleted...wrong thread

Oriel Securities analyst Nick Copeland cautioned Desire had not indicated the quantity of resources found. "At this stage we expect this [Rachel North] to be smaller than Sea Lion, potentially with 50-150 million barrels of resources," he said.

Yep cynic thanks as you've said before, I'm aware of that.

Never like showing my hand on here too much these days as it always seems to bring me back luck!

I guess I've just become paranoid in my old age!

http://www.proactiveinvestors.co.uk/companies/news/23616/broker-roundup-desire-petroleum-rockhopper-ascent-resources-minera-irl-electrum-alliance-pharma-23616.html


Desire Petroleums (LON:DES) Rachel discovery suggests that the North Falkland basin has the potential to be an important oil province, according to research by Evolution Securities.

This morning Desire announced that the latest well to test the Rachel prospect struck oil from 2,621 metres.

Initial analysis indicates that the well encountered sands and shales with hydrocarbons with 349 metres gross interval, from which it has 57 metres of net pay in multiple zones.

The new Rachel well encountered sands and shales with hydrocarbons from 2,621 to 2,970 metres.

The thickest zone is 8 metres thick with an average porosity of 20% , Desire said that the other zones are thinly bedded and lower porosity.

Desire stressed that further analysis, from additional wireline logs, is required to establish the reservoir potential.

Wireline logging is ongoing but initial indications are that the thickest section has good porosity which bodes well for any future flow test and therefore commerciality of the field, Evolution oil analyst David Farrell said.
Farrell upgraded the oil explorer in light of the news. He now rates the stock as a buy with a 180 pence target.

Similarly Northland Capital - formerly Astaire Securities - also had an upbeat view on Desire, now it has an oil discovery of its own.

This looks very positive and vindicates Desire's decision to pursue the Rachel prospect with a second well (largely a consequence of analogous data from
Rockhoppers Sea Lion prospect), Northland analyst Andrew McGeary said.
Finally some reward for Desire's endeavours in the form of oil here.

Fox-Davies Capital featured Desire in its 'Daily Monitor' today and asked: "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," the broker added.

The potential of Ascent Resources (LON:AST) assets is clearly being underestimated by the market, according to research by city broker finnCap.

The broker believes that Ascents projects could deliver nearly 10x upside if they prove successful.

Trading at a 60% discount to total NAV (Net Asset Value) Ascent is by far the cheapest stock in our coverage universe, providing a highly attractive entry point, finnCap analyst Will Arnstein said.

He adds: we believe there are near-term catalysts that could drive a material re-rating.

The analyst highlighted the 414 billion cubic feet (Bcf) Petişovci-Lovaszi re-development project, and its plans to drill five other exploration and appraisal wells planned in 2011, as two of the main catalysts.

This morning Ascent told investors that it has mobilised the rig for the first well in the Petişovci-Lovaszi programme.

This well, Pg-11, will be the first to drill on the Slovenian portion of the Petişovci-Lovaszi project area. Depending on the weather drilling is expected to get underway on or around 16 December 2010.
FinnCap believes that the Petisovci-Lovaszi gas field provides a material re-development opportunity .

A recent CPR (Competent Persons report) by RPS has confirmed Petisovci-Lovaszi as a significant under-exploited tight gas field with 412 Bcf of GIIP (billion cubic feet Gas Initially In Place), Arnstein added.

The field has been partially developed in the past, producing 10 Bcf without the benefit of modern drilling and completion technologies,

Ascent believes a recovery rate of 65% should be achievable from reservoirs of this type, providing a huge re-development opportunity for the company.

Additionally the analyst also highlighted that Ascents innovative sale of its Swiss assets, may still provide exposure to high impact drilling at no cost.

Overall Arnstein believes that Ascents value could rise rapidly.

In terms of his current valuation, Arnstein said: Our total NAV for Ascent is 15.6p per share and is made up of an -1.2p core NAV and a 16.8p risked NAV.

With most of Ascents activities in the exploration and appraisal phase, core NAV is currently limited, but could rise substantially within the next year as projects move rapidly to development.

Separately other analysts have also gave upbeat comments on Ascent and the Petisovci-Lovaszi project.

Fox-Davies stressed that Ascent has taken important steps to progress the work on Petisovci-Lovaszi.

This asset has the potential to drive near-term value and it is welcome news that the drilling operations are underway; Pg-11 will be the first in a 4-well drilling programme, the broker said.

We look forward to further updates from the evaluation programme and maintain our Buy recommendation.

............

( PS. I am long AST (Ascent) from 3.5p :) )