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

An interesting question was asked on another BB: Could DES redrill/reopen the wells drilled in 1998?

I understand that 4 out of the 5 drilled had oil shows and these were capped. This strategy (if adopted by DES) makes immense sense to me and must surely reduce costs and timescales I'd have thought.
It would also mitigate some of the risk to us "investors" when drilling commences.
Keep up the good work all. I enjoy the read!

JP the next drilling will be in C&D Blocks and may be F and off the top of my head only one hole was drillied in that C&D area last time may be ask Oily on ADVFN as he is the man.

It was 6 wells drilled last time and 5 had oil shows the one in the B block x shell owner had free flowing oil when that was drilled last time.

Regards

Markymar

Hi chaps,

None of the wells previously drilled are in DESIRE's acreage. As marky has stated, 5 had 'shows' which only indicate the presence of a hydrocarbon system. The wells were drilled to intercept structural highs above a proposed source rock. These shows were NOT recoverable oil . Post drilling analysis has shown that the oil generated (billions of barrels?) has more than likely migrated to below the source rock or to the basin margins(plays that were not fully tested) an any of the 6 wells.
The fact that Shell recovered free flowing oil and Gas in Tranche B was extemely encouraging (with reports of heavy flaring), but Shell subsequently and surprisingly gave up their rights to this block, which has always been a conundrum.

www.falklands-oil.com has an extremely informative section on the drilling of each well, which play was tested and why it was unsuccessful.

I don't think the idea of uncapping previous wells is a goer at all. Don't forget that these were exploratory wells, drilled only to establish the presence of oil/gas accumilation.
The fact is should DES strike oil in one of their upcoming exploratory wells(fingers crossed), It is extremely unlikely it would be used for production. Again I state exploration wells are for discovering oil/gas and establishing the presence of a reservoir. Further production wells are usually drilled drain the reservoir in an optimal manner. Often additional wells are also drilled as water injectors to 'push' oil to the production wells.

If Des strikes oil it will be 4-8 years before any production starts.

of course the share price should be many multiples of what it is today, if we ever got to that position as an independant company.
Jon

Hi John,

Your right no wells have been drilled in the present acerage held by Desire but was a well drilled near by

"No wells have been drilled in the licence as it presently stands, although one well (Lasmo 14/13-1) was drilled in a now relinquished part of the licence."

Must be getting old and thank you for that post john.

Regards

Markymar

John

Many thanks for clarifying the position and the info given. It will be interesting to see if Shell can be enticed back as a partner.
P.S Nice to see that DES is "flat" today rather than Red! (so far).
Good weekend all.

Hi all

Charts look interesting so far. (intraday) Will look again at the close.

Momentum do you see anything ?

Good Luck All

Eddie

Just a tight consolidating phase, however a few indicators are starting look interesting. Had a good week with MMG, took a large position early last week when OBV spike up after being flat for quite sometime. Like the look of BPRG. nice engulfing candle produced today, bought a few today. However will pile in if 66p and 20 EMA is broken as i beleive the worm is turning.

Anything juicy on your radar Eddie

Eddie did you nerve hold with COP.

Hi momentum

Does the chart look like a hand shake to you ? (doji candle)

Will check on sharescope first. Down loads after 6.00pm.





Kind regards

Eddie

Hi all

Lets play spot the doji.

I see three. First, bottom left (under the 20 day moving average) before the big rise.

Second, about mid January top of chart. Before correction.

Third, today. The Doji is also under the 20 day moving average.
As momentum says it's screaming buy!

DES may not rise straight away but it will be soon. Look at the doji before the big rise in november. It took a few days before shooting up.





Markymar will furnish us with some news soon ! I can feel it. Lets hope its all good !

Any Thoughts Anyone ?


Good Luck All

Eddie

Hi momentum

The answer to cop is yes. If you want to activte your private mesage button I'll chat on cop in private or on cop thread if you like.

Kind Regards

Eddie

Eddie, Hello & thanks for your very explicit "pin-pointing" re doji, the signs are good to say the least! Must admit this is my first real venture into the "oil-fields" and thus, whilst alright with the Corporate & some Technical understanding, am relying on you "oily" boys for the real nitty-gritty on DES. So, if it,s OK with you lads, I,ll carry-on picking out the parts of your summaries which suit my investment and maybe one day my "oily" knowledge may improve. Always think it,s good to try and know as much as possible about the workings of the holdings where ones money is! Cheers & Rgds.

Thanks for that Eddie.I agree things look good on the back of a testing week.Everytime there was resistance the shares bounced back.
There should be an annoucement soon . Remember DES posted a response to the sudden increase in the share price in Dec so its imperative they keep updating.And considering that the news was v.positive its vital, i think , that we should hear soon.Months of silence at this stage would be a bad thing.Would make me wonder WHY no partner jumping at the chance to join them.
Have a good weekend all.

whilst the appreciation is being made public I would like to add mine, I got in DES late november and have too developed a sense of gratitued to the regular poster's. The signs are good, the charts appreciated and the info may add to a top up early next week. Thanks again

watcher

Eddie a quick question why over the last couple of weeks there have been more buys every days to sell a part from the odd days has the price just sat in the 60 ish area.

Intresting these graphs EEN the only other big holding left so on the private some time Eddie your thoughts on them if you find time. I sold my TMN to buy more Des shares got them at 0.07 and gutted that evil has gone long on them but banked good profit.

Regards all

Markymar

Has anyone else been offered a new research report on Desire Petroleum by Price Stone Group, based in Madrid? Hopefully the report will have new information and isn't just a way of catching new clients. Agree that this is a buying opportunity but am heavily invested already (more Zulu principle than balanced portfolio). Hoping we get farm in news soon so that I can meet some of you guys on board our yachts.

Bucket shop outfit....

Thanks for the warning