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

On level 2 at 50p there is a 300,000 sell on the books.

1mill buys more so far and good volume.

3D i am sure it will jump on that news RF but we are some time away but would be great to here Sea Lion goes in to DES acerage.

Slide 11 and zoom in. 3D pre plot map.

http://www.polarcus.com/assets/0000/1209/Polarcus_Company_Presentation_SEB_12_Jan.pdf

why does this one seem to have run out of puff - not that i thought it should have any in the first place?

I think it is suffering from a general malaise that will be resolved one way or t'other when the RKH results are known in Mid Feb.

in my very biased opinion, DES will still still be living more on hope than expectation regardless of what RKH come up with

seemingly a bit early, i have closed my short here for an acceptable profit on the basis that if RKH come up with something good, then DES will whizz, even if only temporarily

4 in 1 chance it wont whizz,but if they do it will be great news,RKH i see little downside on the share

if RKH have a good result, then surely you'ld agree that DES's proximity will have a strong, if stupid, influence on sp?

once that bit is known, am sure i shall short DES once more, but didn't want to get caught with my trousers (shorts?) down

From FT sector watcher today:
"DES is hosting an analyst presentation today, with the slides already available on its website. There doesn't appear to be much new news, other than confirming that the group's next well is likely to be the Ninky prospect in licence PL004 (DES 92.5%, Rockhopper 7.5%). Ninky is believed to be targeting P50 reserves of 94m barrels, which I'd estimate to be worth around 100p/share net to DES.
Given the group's disappointing track record to date in its Falklands drilling campaign (i.e. five wells drilled, zero commercial success), I'd imagine that hopes are not especially high. The well is likely to spud around March/April, i.e. after RKH's next two wells, the first of which is currently drilling. This increasingly looks like the last roll of the dice for DES, given that its 53m of remaining cash will largely be used for the drilling of Ninky and to complete a 3D seismic programme, as well as rig demob costs
If Ninky fails, the group may struggle to raise further cash for future drilling, however compelling the seismic may look. There are much better ways to play the Falklands, primarily RKH with its Sea Lion discovery, alternatively Borders & Southern or FOGL for exposure to the large structural targets to the south and east (although drilling results from here are unlikely before next year).

i thought des would dip further on rkh result - bit surprising?

Level 2 there is a huge sell order in 485,000 at 37.75p......

http://www.desireplc.co.uk/images/uploaded/1472131_3252464.pdf

Analysts Presentation February 2011

Well that big sell has gone on Desire order book maybe why 6% up....one to watch as it can jump in a blink of an eye

someone splashed out 177,494 and bought all them share

Desire bouncing around this morning looking strong on level 2,looks like there had been a seller who is all out hence the price rising.

Not a good day for shares,looked on level 2 there is a big order for 300,000 at 32p to be filled.

I also have Desire going in to auction on level 2?

I have topped up with Desire hoping that any good news with RKH appraisal well will have a knock on affect. I would like to think with Desire getting the OG back to drill next I would like to think this share price will over react on good news and out perform RKH.

Lets hope its a blinder of an RNS it cant be far away, maybe waiting to release news so the FI have the same playing field as we do.

Surely less risk in ARG? DES prospects looking a little bleak, imo, and will be very badly hit if RKH news is negative.