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

Desire Petroleum shares fell 17p, or 29 per cent, to 42p after the company said it had found no hydrocarbons in its Jacinta well in the southern part of the North Falkland Basin.

Desire, which earlier this month said it had 75m ($116m) remaining to drill its final two prospects, said it would now proceed with drilling the deeper Dawn prospect at the same site.

The failure to find oil is the latest setback for Desire, whose shares have dropped 73 per cent, from 168p, since they hit a high on October 11. That was before Desire said that it had failed to make a commercial discovery at the Rachel prospect, a joint venture with fellow Falklands explorer Rockhopper.

David Farrell, an analyst at Evolution Securities, said it could soon be game over for Desire, which after drilling four dry wells might have trouble raising more funds.

This didnt come as too much of a surprise [though] it will be hard for the management to go cap-in-hand [to the market] again. Perhaps if Rockhopper has continuing success that might change ... but it looks as if it has one last roll of the dice, he said.

In September, Desire raised 22.8m in a share placement for a potential drilling programme elsewhere in the North Falkland Basin, close to where Rockhopper made its Sea Lion discovery.

That remains the only oil find in the region since four London-listed oil companies that operate there Rockhopper, Desire, Falkland Oil & Gas and Borders & Southern raised 250m from investors last year to drill for oil at the spot for the first time since 1998.

Earlier this month, Desire shares fell after it issued a statement suggesting that it had struck oil based on preliminary data, only to announce a few days later that it had turned out to be a mixture of residual oil and water.

Heading down to 30p imo.

buy buy buy:))

Of all the shares I own...this is the worst one.....will just have to sit it out....and wait for a well close to sealion or thereabouts.....the sp should rebound by then...

obviously i don't know how big a loss you are running or how many shares you hold relative to the rest of your portfolio, but unless you see good reason why DES should rebound (personally, I do not), then why sit like a rabbit in the headlights?

lol Balerboy.

Because there's just a chance it'll get back to 60p with next drill......just a chance.,.

probably similar chance to DES finding anything commercial - but then i am a declared bear of this stock

I agree but a 50% loss is better than a 75% loss, so live in hope.

Just don't want to clock up a bad loss when with patience I can see this being above 80p with a spud close to RKH's acreage.....

I must admit rf, that if you haven't sold by now, then my opinion would be to wait for the next spud or drill result as DES is likely to move in sympathy, though not with the same momentum as it used to.

We'll tie ourselves in rf and not jump ship.......not yet anyway.,.

Prophet of Doom says that with patience, sp could very easily, or even more likely be 20p or even less

Harry, you should read the Naked Trader, you're displaying all the symptoms of egotistical trading / investing - refusal to take a loss!

I agree with you in principle, but if the consensus of informed opinion is that DES is likely to rise on the back of RKH activity, then why sell now? My argument is that rf should have sold long ago, but that is easy for me to say with hindsight and I have learned the hard way myself in the past.

Harry, I meant to direct my observation at RF, apologies.

I've been in the same position all too often in the past.

Now everybody agrees that DES is a doom and gloom company?

no - only me (and you?) who rattles like an old tin drum

and me too and I'm thinking about stopping my short for a profit, what do you reckon?

never go broke taking a profit as i always preach, but in this instance, i'm letting mine run - short from 67p but not a massive quantity; in value, a bit more than my long (50% norm) in RKH if that's a guide