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

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.

i am wryly amused by the rise in DES sp in sympathy with RKH ..... the next drilling is at Ninky, but that is a (relative) zillion miles from Sealion

Will be peanuts if it comes in dry.....

buy peanut futures ..... actually, it should probably be short peanut futures as the market will be flooded with them!

Desire Petroleum plc (DES:AIM) the oil and gas company wholly focussed on the North Falkland Basin announces that the 14/15-3 exploration well on the Ninky prospect was spudded at 02.45 BST on 29 March 2011.

The prospect is a combined structural dip and stratigraphic pinch-out trap with multiple reservoir targets within the Barremian source rock interval. The well has a planned total depth of circa 2,620 metres and drilling operations are expected to take approximately 30 days.

A further announcement will be made once logging is complete

The Board of Desire Petroleum plc ("Desire") is pleased to announce the appointment of Mr Ken Black as Exploration Director.

Aged 51, Ken is a petroleum geoscientist with 30 years experience in the oil industry. He began his career as a geophysicist with BNOC/Britoil before moving to Clyde Petroleum Plc where he became an exploration team leader. In 1994 he moved to Production Geoscience Limited (PGL). As a director in the business from 1996, he helped grow PGL into a renowned subsurface consultancy, providing global geosciences services in exploration and development. He was appointed a director Senergy Holdings Limited following the merger with PGL in 2007.

In October 2010 he was appointed Exploration Manager for Desire having previously worked on the licences for a number of years through Senergy/PGL.

des chances imo are slim at best - ken black lets hope is he on a 3 month contract?
i have little in des now for me - belly up i do not care - multi bag from here great
rkh imo the key

Ninky has about 25 to 30 % chance of Success,either way wether they hit oil or not they will have to raise further funds to carry on drilling.

Some intresting times ahead the way this will pan out I think the 3D seismic will also be a major key in the future of Desire and the big question is does Sea Lion extend in to Desire acreage which would really be a game changer if she does.

I hold a modest amount of shares in Desire and have learnt some valuable lesson whilst holding the share and I wont be sucked in like last time and will be unloading some shares when the time is correct to try to get back some of the huge losses racked up last time by a bad call by the board of Desire and its so called expertise companys working for them.

Marky
I too have a modest holding from the last time but unlike you I intend to ditch them as soon as they are break even.
If they do find something other than water this time around then I will feel warm because of the 7% RKH interest - and maybe it will do something to make the RKH realise a little more of its potential.

http://www.proactiveinvestors.co.uk/companies/news/27035/desire-petroleum-to-review-funding-options-for-future-drilling-in-the-falklands-27035.html

Desire Petroleum to review funding options for future drilling in the Falklands
Desire Petroleum (LON:DES) will review all its financing options so that it can re-join the Falklands drilling campaign later this year, it announced.

The AIM-listed explorer has now drilled five of the six wells it initially planned without success. However in this mornings full year results statement, the firm said it continues to be confident that oil discoveries will be made on its acreage.

It is currently drilling Ninky, its final contracted well of its current programme. After that it will have US$37 million left which wont be enough to drill any more wells.

It plans to review its financing options once it has digested the 3D seismic results and the Ninky well results are in.

Meanwhile, the company said that its remaining cash is sufficient to cover its share of demobilisation costs and the completion of its 3D seismic work acquisition (including processing and interpretation), as well as its general working capital needs.

"It is our belief that the East Flank Play Fairway has a great deal of potential, and it is with this in mind that we are currently drilling the Ninky exploration well," said chairman Stephen Phipps.

He added: "We have drilled five wells on prospects and have commissioned 3D seismic over previously uncovered acreage. The geological information gathered from these wells combined with the new seismic data is expected to have a significant impact on the prospect portfolio.

The Ocean Guardian rig will remain in the South Atlantic after the Ninky well has been completed, to drill a further three wells for Rockhopper Exploration (LON:RKH) who recently followed up the Sea Lion discovery with a successful appraisal well.

Desire reported a loss of US$3.49 million in the twelve months ended 31 December 2010.

interestingly, DES hasn't moved at all today

More funding means sp will drop.

Notice is hereby given that the Annual General Meeting of Desire Petroleum Plc will be held at the offices of Buchanan
Communications Limited, 3rd Floor, 107 Cheapside, London EC2V 6DA, on Tuesday 31st May 2011 at 10:00am,


You better short it hlyeo, let me know if you do

So far the 5 wells drilled had come to nought and previous misleading info by DES has certainly put a nail in its own coffin. Shareholders will certainly remember that.

Shareholders and / or potential investors will soon forget the past if Ninky comes up trumps.

I have never believed for one moment Sea Lion is the only resevoir in the NFB and if they (DES/RKH etc) keep drilling they will find more oil, it's just a matter of time, luck and good pre-drill analysis. Someone posted a while ago, can't remember if was on this thread, that the North Sea drilling campaign kicked off with a raft of dusters and look what eventually happened there!

What is clear is that if Ninky fails, DES SP is going to drop at least 50%, probably more, due to the inevitable future funding dilution. From a pure punt perspective the downside is reasonably limited, whilst the upside is considerable. Depends on your risk appetite whether to gamble or not, but 25% COS is not bad odds.

if you're taking a punt, then definitely only stake as much as you can afford to lose, assuming it dumps 75% on yet another duster ...... that said, i agree with peter that it is almost inconceivable that sealion is the only live patch, but why should ninky be another?

Indeed Ricardo why should it, but by the same token why should it not?

I imagine DES have chosen this drill very, very carefully, if it fails they know they are going back to the market for more funds and huge dilution for existing shareholders (including themselves). Whilst none of that improves the COS, this is their best bet.

I agree with your punt sentiment, anyone buying now must size their position on the basis of how much they could lose and 75% isn't a bad estimate, tho I think after the intital rush for the door, 60%-65% is perhaps more likely.

DES didn't intentional pick duds previously either, he said with unusual sourness

Not in......so risky and got my fingers burnt when they said they had found a good oil discovery only it to be a complete dud......a 100% gamble to be in this because 10p is the next stop if it's a duster !.